VA Vendee--My experience with this loan progam Part 3 of 3 The Closing

Hello all,

We are a one income military family that is attempting this Vendee process. After reading through this blog, I've developed a nervous tick! Ha Ha! I'm kidding, but it really has made me nervous.

Like a previous poster, we too have 2 overdrafts on our account due to circumstances that were TRULY beyond our control. I purchased a magazine subscription to Sports Illustrated for my Dad as a gift for Christmas. When it came time to renew the subscription, they automatically billed my debit card without any communication with ME. Apparently notice was sent to my Dad, and he threw the notices away assuming that if he didn't respond, they would NOT renew the subsciption. That said...I went into the hospital to have our second baby, and I had two transactions that posted to my account that overdrafted it. I have sent in a letter explaining this with our big packet of paperwork for BofA. I have also set up overdraft protection on our account and sent in a separate letter explaining that. I want to be QUITE CLEAR, those two overdrafts are the ONLY two overdrafts on our account for over a year.

The jury is still out on whether that will affect our loan or not. Our credit scores are in the 750 range, so I've been told by other banks that those two overdrafts would NOT affect our loan with them...BofA's Vendee process has NOT commented as of yet. Mind you, we have been banking with BofA Military Bank for 12 years now, so they have our ENTIRE history at their fingertips.

We are frustrated by this process though, because when we found this property, we had a TERRIBLE time getting any information on it. The realtor that was listing the property has a REAL HANDICAP when having to return phone calls. It took us OVER A MONTH to hear back from him, and that was only after I finally called the bank's REO department and asked them if they wanted to sell this property or not! Imagine my surprise when we received a phone call back that SAME DAY from the Realtor...if I had only know that was the key to motivating him, I would have done it a month sooner.

Since that realtor took his sweet time getting back to us, we are now faced with burning 17 days of leave time just sitting on our laurels because we cannot move into the home until we close. That's IF we close in 60 days...if not, there goes more days of leave. We HAVE to take the leave in this allotted time-frame as this is a block that has been set aside for the entire Armor School to move from Fort Knox to Fort Benning.

The ONLY thing that has made this process bearable is that we stumbled upon two WONDERFUL realtors that have been willing to go to bat for us every step of the way! I would definitely post their names and business in this, however I feel that doing so on another realtor's website would be tacky. :) They know who they are though, and I have put glowing reviews up for both of them on zillow.com and also on facebook. :)

We are still in this process, so I will attempt to get back and post again when things move along.

By the way...we started the Vendee with a Mortgage Loan Officer that requested a ton of paperwork, only to be handed off to the VA Vendee Representative who requested the exact same documents. She did not receive ONE sheet of paper from the Loan Officer...like another poster stated, it seems as if the left hand does not know what the right hand is doing.

At least our VA Vendee Representative is getting back to me in a timely manner! Thank you Andrea G!

Well, this is what happened to our situation as of 5/27/11: we signed a one month extension to the contract and there was no movement until today. We received the following email from the listing agent who was notified from the Servicer, who was also very upset.

"Hi, A endorsement to the Owner's Title Policy that removes exceptions 7 through 10 from Schedule B was requested from both the F/C Atty and Previous Servicer in order to obtain VA Approval. The F/C Atty and Previous Servicer has not provided this information. I am recommending Reconveyance. PLEASE DISCONTINUE MARKETING THIS PROPERTY. "

So, of course, two attachments from the Servicer accompanied this email note through Equator and so forth. We are not happy about any of this. The listing agent is not guaranteed that they would get the home back, nor are we guaranteed anything, nor was there any mention about when our down payment would be returned because some company in Kansas has it. So, our contract is just dead in the water because they cannot produce a clear title. And yes, IF the house does go on the market again, a new price will be on the house and we would have to renegotiate our offer. Prices are up in that area, too.

The listing agent also said that she has recently had THREE VENDEE properties recently 'do' the same thing.... and she believes it's all the attorney's fault.

 

I did not make my points clear. 

The listing agent for the house we were buying believes that the VA attorney is not doing their part well, nor are TRYING to get things done in time... or really give a rat's a$$.... because it's U$ that are selling the houses and they are on someone's payroll and not working on comi$$ion, because if they were working on comi$$ion they would be getting the work done. Isn't it funny how that works?

Furthermore, the Listing Agent and the company she is working for... recently took on several VA properties; of which only ONE has panned out because it sold with a CONVENTIONAL loan.

I told the Listing Agent that a gazillion years ago, I was married in another life and had a VA loan. For eight years I owned that home. And in as many years that we owned that home, the mortgage was sold as many times. It was difficult keeping up with each new company, but I did for the new owners, believing that one day, the information *may* be valuable. WHO KNOWS if it might be so today, because that house IS 30 years old this year. 

This has been a wonderful *SEMINAR* if nothing else, hasn't it? We learn something new every single day.

I am going to continue to pursue these loans and learn how to make them work out for us. They CAN work and do work for some people. Patience is going to the key to success here.

THANK YOU so very much for writing such a valuable article. I, for one, appreciate it. If I find success with the VA Vendee Loan Program, I will most certainly share it with you.

 

Can anyone help me. I'm trying to get a VA vEndee loan and the realtor gave me the website to the VA homes and on there is says that this program is not credit based driven. However when I called the tel number listed on the VA VEndee webster it took to me bank of america and the lady there said that it is in fact credit based and the info on the website was not accurate and they require 620 minimum to qualify!?!? The lady was snotty very rude she pretty much said if I wanted to go thu a pre qual I had to do it now with her... I was referred to this website because a friend got theirs done thru VA VEndee and their credit isn't that good.... Is this true that the VA VEndee is not credit based or is? I feel like the VA VEndee website is advetizing false info!

I am thankful I found this blog.  I am in the process of purchasing a VA Repo and will most definitely have an attorney write up my contract.  I will also not use the Vendee financing as I am not a great fan of BAC.  I have seen first hand how BAC works. Sleazy comes to mind everytime I hear BAC.

Since I am a veteran I will have VA financing.  Guess we will see how that goes.

I found this site to personally educate myself in our own situation buying a Vendee home for investment purposes. I'm also a Realtor. Even so, there's always something to learn. Every time you think you've heard it all, there's a new trick to learn.

What's not a trick, but is confusing to Veteran's is how VA loans work and their distinctions.

VA does not finance property, but GURANTEES a loan you get from a bank, so you do not have to put down any money, nor pay PMI (mortgage insurance). Credit scores are important for VA loans.

However, the VA says that VA VENDEE FINANCED LOANS are NOT credit score driven for financing approval.  You have to have verification of funds for the down payment and submit VA Form 26-6705b Credit Statement of Prospective Purchaser (application). Basically, VA wants to know if you have sufficient income to make the loan payments. You will also need to show you have two years of employment. There's a 2.25% funding fee, which could be waived if you have more than 10% disability on any type VA loan, including Vendee. 

Do not BOTHER calling any regular BOA processor. Only call the Vendee processors or you will be wasting your time. Ask me how I know this....

BOA PROCESSES VENDE LOANS. ALL OF THEM. You cannot escape them. If you want the terrific rates, no PMI, and all of the other selling points, call BOA. I'll tell you right now, the paperwork for a Vendee loan is a GRIPE if you are an investor and have other properties and kids. :) (You'd understand... about the paperwork if you were an investore, won't bore you.)

Anyway, the rules are from VA Vendee, not BOA. Granted, there's such a huge turnover of people at BOA these days that when I get hold of someone that doesn't "get", with a capital G, the program, I'm on it. FAST. So, be PATIENT... BUT stay on them. Be persistant and it will all come together. 

Personally, I have found MOST BOA processors OK. There's been one or two I could have lived without meeting, but I got rid of them ASAP. 

In my case, we did not purchase the Vendee property. There was a cloud on the title. VA "sold" it to BOA, then they sold it with a "cloud". It closed for $20K less last week.  I would not buy any property with a cloud on the title.... not even for $20K less. Especially when the previous owners did not sign paperwork, nor did they find the original lien holder.

http://www.benefits.va.gov/homeloans/docs/vendee_flyer_032009.pdf Only call the number on the bottom of this flyer to apply for a Vendee Loan

Look for VA and VA Vendee properties. Not all VA properties are available for Vendee Financing.

https://va.equator.com/index.cfm

I understand the VA program as I had used it before several decades ago.  I just decided that I work full time and don't have the time to chase down people that can not or will not do their job.  Paying to have my attorney look everything over and insure that I am not left holding the bag on a foreclosure. 

BAC is just a sleazy organization.  They were caught doing ROBO signing and I just do not trust them at all.  Matter of fact I am not impressed with most BIG banks.  I am very careful who I do business with.  The banks and the financial institutions I work with were not on any bail out and they don't charge me fees to use my debit card. 

Hello! I was searching around for information on when I would be able to re-apply for a VA Vendee mortgage, but still do not know. I went through the whole process and ended up with the underwriter saying no because of the silliest reason! -My husband will not be on the loan and he has his own bills- daycare being one of them. I do not pay daycare...except I did make 2 payments for him- in December and January- because my husband was getting off work late on a Friday and to avoid the $25 late fee, I made the payments and he gave me the cash. So, they added the daycare expenses to my debt to income ratio. Needless to say I was heart broken (and still am!). The branch manager said she would process it again using 12 months of bank statements- no big deal, but my savings did not have much in it until November of last year. Would that affect the approval? My credit score is great, I have closing costs and then some, the home has been in foreclosure status for 15 months and I am the only person wanting to buy it- don't they want to sell them? I mean, there are at least 100 VA foreclosures here in my town! Now I am going to have to find a home 1/8 the price for the same monthly payment using a FHA loan. I am so upset at the thinking behind being turned down just because I made payments to avoid late fees! Can anyone tell me when I can re-apply? Thank you! 

I want to scream, OMG!!PO*Y&*RTG*. You MUST have that same assinine processor we had. I am NOT kidding. Immediately, get on the phone and GO OVER HER HEAD. RIGHT NOW. BEcause, they did something similar to us. My husband had deposited a refund check into his account from my son's college. The check was made out to my son, endorsed by my son, then my husband endorsed the check and deposited the check into his account. Of course, the VA literally chases down EVERY SINGLE DEPOSIT YOU MAKE AND EVERY CHECK. FOR US, IT WAS HARDER BECAUSE WE HAVE MULTIPLE RENTAL PROPERTIES, TOO. Anyway, our conversation went *something like this*: (Keep in mind, I am a Realtor)

Processor: What was the check for?

Us: Our son got sick and dropped three of five classes from college. The college reimbursed him for those classes and my son endorsed the check over to me.

Processor: OH, so you paid for your son's college classes?

Us: Yes.

Processor: So, you LIED about your debts.

Us: Be careful about calling us liars. We have lied about nothing. What do YOU NOT UNDERSTAND?

Processor: I think I understand that you did NOT divulge that YOU have a DEBT of paying for your son's college expenses. This changes your debt to income ratio. You may not qualify for the loan with two in college at this rate.

US: WHOA NELLY! Just a minute. We DO NOT have a *DEBT* to ANY college. We OWE NO COLLEGE ANY MONEY. CALL THEM. ASK THEM. WHO DO YOU THINK YOU ARE TRYING TO INTIMIDATE ME? This process is to approve loans, not disapprove. You ASK questions to solve issues and problems. DO YOU UNDERSTAND? Now, let's start over. OK? Ask me another question so we can solve YOUR issues so this loan can be approved.

Processor: Mrs. Cha.., I do not think you underst...

Us: EXCUSE me. YOu had best hit the record button. YOU are no longer working for OUR BEST INTERESTS. This is a subjective process. Truly. WE have busted our a$$E$ to please your PETTY a$$. We wil do whatever is necessary and right. However, our discretionary funds are just that. If we choose to reward our son and pay for his college classes, then by God, YOU HAVE NO RIGHT TO CALL THAT A DEBT. YOU ARE WRONG AND WILL NOT ADMIT IT. WE CAN SEE THAT NOW. WE WANT ANOTHER PROCESSOR. WE CAN NO LONGER WORK TOGETHER. Then, Bank of America, who processes the loans, got us another processor who pushed that loan though ASAP. Then, the Title had a problem at the end of the day. :(   

But, there is a gal there that does exactly that. FIGHT for that. YOU have discretionary funds and you can spend them on WHATEVER YOU WANT. THAT INCLUDED PAYING FOR SOMEONE ELSES DEBTS. WHO CARES? THEY ARE NOT RECURRING EXPENSES. THEY ARE ONE TIME OPPORTUNITIES OR LIFETIME REWARDS, OR WHATEVER! IT'S NONE OF THEIR BUSINESS WHAT YOU DO WITH YOUR MONEY. IF YOU GIVE YOUR MONEY to the Salvation Army, your mother, buy beer, beets, cars, McDonald's, or pay someone's college tuition: it is YOUR MONEY: NOT A DEBT. IT'S NOT A DEBT. IT IS CALLED DISCRETIONARY FUNDS. 

I don't mean to 'yell'. I was so highly irritated with this chick. She truly tried her best to DITCH and kill our loan! If I was not PRO-ACTIVE and GO OVER HER HEAD, our loan would have stopped dead in it's tracks. So, do NOT put up with her shenanigans! She's ONE PERSON, WITH HER CRAPPY INTERPRETATIONS OF YOUR SPENDING. CHALLENGE HER BUT HAVE SOMEONE ELSE BE THE REFEREE.

Thank you for your input Sheri!! I had my loan officer talk to her manager- who spoke to the branch manager for the VA Vendee- who said, and I quote "I cannot do it. I cannot ignore the 2 months bank statements showing it was paid from your account. I will need 12 months of bank statements". So, yesterday I told my agent and she informed the selling agent, who has since taken the offer off of the table. Like I said, I am devistated! I have put my heart and money in the right place, just to have them say that since I paid a bill to avoid a late fee, that I am liable for that bill! I told them I would get letters, sworn statements, etc. just to make them see...they said no. Who else can I get to "referee" for me? My realitor has never done a VA Vendee and my (really great) loan officer said there was nothing else she can do......I am so sad.

Heather, you have to get out front of this loan. Put your offer back in and, LISTEN TO ME: *HANDLE* THE PROCESS PROFESSIONALLY, RATIONALLY, CALMLY. So, when you DO *example* Excitation, they will LISTEN with all EARS. Because it is very simple: tell the loan officer that the daycare expenses are not your responsibility. That is something that your husband pays and it is NONE OF THEIR BUSINESS. PERIOD. Listen to me, *handle* THE PROCESS-OR, AT THIS POINT. You want to CONTINUE TO INSIST and REPEAT that daycare is not a debt you pay, it is not their business, and is not recurring. You have NO DEBT TO ANYONE. YOU own NO ONE a BALANCE. YOUR DISCRETIONARY FUNDS AND HOW YOU SPEND YOUR MONEY IS NONE OF THEIR BUSINESS. KEEP REPEATING THAT. SOMETIMES YOUR MOTHER KEEPS YOUR CHILD, etc, etc.... It is NONE OF THEIR BUSINESS. 

Do you understand? HANDLE THE PROCESS AND HANDLE THE PROCESSOR. Calmly, professionally. Once you understand their limitations of power and exactly what they are supposed to do the FEAR of the process DISAPPEARS. I've processed about 18 loans with BOA. And two VA Vendee loans with BOA. OM GOSH... YOU'D THINK WE WERE CRIMINALS AND BOA WERE ENTIRELY DIFFERENT COMPANIES. THE VA VENDEE PROCESS IS UNBELIEVABLE. KEEP METICULOUS RECORDS. AND BE PERSISTENT. PERSISTENCE WEARS RESISTANCE.... all in my humble opinion. :)

You ROCK Sheri! You have me pumped up and I am ready to try again! I just emailed my loan officer (since I am at work and cannot talk personally on the phone now). She said it would be like fighting City Hall, but she is going to ask again. She said there may be another long wait- last time she asked them a question, it took 4 days to hear back. Even if I do not hear back from her right away, I am going to call the processor after work myself. I think you are completely right and I am going to fight, fight, fight! Thank you so much for the encouragement! Hopefully, next time I post will be with good news! Thank you again!!!

From my loan officer: Just received an email from the Vendee manager, she says “No” to your most recent request...that child care is considered a debt with the documents provided.

I guess I am back where I started....Thanks anyway Sheri!

Heather, one more thing. I don't know how many loans you've done. But I hate to say this, but do not just let your Realtor handle your loan. YOU handle your loan. I've had people think that I'm to do al of their loan work, etc.. and they depend on me for EVERYTHING. I've found that that most people just say: I don't understand, just work it  out and tell me to call their loan officer. If you don't do it, I am positive, it won't get done. YOU have to make this happen. The only reason my loans did happen was because I was working for our own loans. I just know how it all works. But I'll tell you, the VA Vendee process IS AN ANIMAL OF IT'S OWN KIND. IT IS RIDICULOUSLY METICULOUS BEYOND MEASURE.

Heather, ASK FOR HER MANAGER AND A NEW LOAN OFFICER: DEMAND IT. YOU TALK TO WHOEVER IT IS. NO EMAIL. BECAUSE THIS IS NOT RIGHT. YOU PAID MONEY AND YOU GET YOUR COMMENTS OUT THAT I POSTED: DISCRETIONARY SPENDING. NOT A DEBT.

If you keep up the pressure: she will KNOW that someone is behind you. KEEP UP THE PRESSURE AND GO OVER HER HEAD. EVERYONE HAS A BOSS.

 

Resubmit some other document that shows child care is not a debt. I'm not sure what you submitted that shows it's a debt. If she's so convinced she's right. Maybe that's why.... if that's what she's saying. If she's bs'ing you and shooting you a line, then call her bluff. However, if not, then challenge her subjective reasoning. Best to you, my friend. 

Thank you Sheri for all of your great advise. Waited for a call back from the Vendee Manager, but no such luck. I explained to the processor that I felt it was unfair and that she needed to help me with this situation- 45 minutes later, she finally said that she would try to look into it. The offer is already off of the table and I just want to know whan I can reapply (or IF I should...). I have an appointment to look at a different home today- 40k below what I was trying for~ so we may go the smart route and aim for the smaller price. Not as big, but less of a headache with the lending. Thanks again for all of the support! I will write again if they change their mind. Thanks and have a wonderful day!

I wanted to post two links and info. BOA lost the contract to process Vendee loans. (No surprise there.) VRM will now process them and won the new contract beginning Sept. 28, 2012. http://va.equator.com/ More information is here: http://www.housingwire.com/news/va-hands-some-servicing-vrm .