VA Loan Reader Questions: Vendee Financing Program
The program known as Vendee Financing is connected to VA mortgages that have become delinquent and gone into foreclosure. In situations where the homes are repossessed are put up for sale, Vendee Financing is possible, allowing borrowers (veterans and non-veterans alike) to pursue a loan on these properties when they are available for sale. For some time, the Department of Veterans Affairs placed the Vendee Financing program on hold because it was transitioning to a new servicer.
However, in 2012, the Department of Veterans Affairs announced, “In connection with the termination of loans guaranteed by VA, servicers usually have the option to convey to VA the properties acquired at liquidation sales. VA has often sold those acquired properties with vendee (seller) loan financing, which required loan servicing by VA. In addition, VA has from time to time acquired (or refunded) VA-guaranteed loans from private servicers in order to modify the loans at terms beyond the capability of the private servicers so that Veteran borrowers will be able to retain their homes. VA also makes direct loans to Native American Veterans on trust lands under the Native American Direct Loan (NADL) program…”
Additionally, “VA made the decision to consolidate these two awards and recompete it under a single solicitation, now known as REO (Real Estate Owned) and Portfolio Servicing Contract (RPSC). On April 13, 2012, VA awarded RPSC to Vendor Resource Management (VRM). VRM is subcontracting for the servicing of VA’s loan portfolio with Residential Credit Solutions.”
Questions for VA on property management issues may be directed to Lance.Kornicker@va.gov. Questions for VA regarding portfolio servicing issues may be directed to David.Polikoff@va.gov.
Contact the Department of Veterans Affairs or the email address listed above for further details on the current status of the Vendee Financing program.
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