VA and VRM - REO Property Preservation Forum
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post #1 of 17 (permalink) Old 11-08-2014, 02:12 PM Thread Starter
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VA and VRM

I am newer to this...so forgive my ignorance. Companies like VRM, they pay their vendors a flat fee for a range of services while a property is in inventory. Some of these are in redemption, some are not, but the price stays the same.

Does VRM and the like keep some of the money VA is paying for preservation work? I ask b/c they are also managing the asset for the Realtors and make their money on that part of the package.
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post #2 of 17 (permalink) Old 11-08-2014, 07:42 PM
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I am newer to this...so forgive my ignorance. Companies like VRM, they pay their vendors a flat fee for a range of services while a property is in inventory. Some of these are in redemption, some are not, but the price stays the same.

Does VRM and the like keep some of the money VA is paying for preservation work? I ask b/c they are also managing the asset for the Realtors and make their money on that part of the package.
VRM is a joke. They keep more money than they payout due to their flat fee cradle to grave BS pricing. If you keep working for them, I can't see how you will be "Justgettinby".....



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post #3 of 17 (permalink) Old 11-08-2014, 09:56 PM Thread Starter
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post #4 of 17 (permalink) Old 11-09-2014, 09:09 AM
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Is their cradle to grave flat rate

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VRM is a joke. They keep more money than they payout due to their flat fee cradle to grave BS pricing. If you keep working for them, I can't see how you will be "Justgettinby".....
Consistant acroos all their loan types, or is it just VA? I ask because I just sent in their vendor package, and didn't yet receive anything back from them. I had completed some of their VA work through AMS in the past, pricing was OK, not great but OK. A local broker stopped in at a property explained that she was the listing agent on several very local properties, and passed on my info. to VRM. The cradle to grave pricing could never meet my minimums, especially during grass cut season and I could not imagine agreeing to any open ended contract like that.
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post #5 of 17 (permalink) Old 11-10-2014, 04:29 PM
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The only good that came from us working for VRM was meeting several realtors we still perform work for today.
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post #6 of 17 (permalink) Old 11-10-2014, 07:41 PM
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Hey, I met the realtor first

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The only good that came from us working for VRM was meeting several realtors we still perform work for today.

maybe I'm gettin' the hang of this.
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post #7 of 17 (permalink) Old 11-10-2014, 08:13 PM
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maybe I'm gettin' the hang of this.
If you work in construction you have to advertise to get clients. Advertising costs.

One way to look at it is VRM paid you to meet new clients.

Make no mistake VRM sucks and you should stop working for them as soon as possible but it doesn't hurt to continue your relationship with the realtors.
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post #8 of 17 (permalink) Old 11-11-2014, 07:42 AM
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I don't work for them.

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If you work in construction you have to advertise to get clients. Advertising costs.

One way to look at it is VRM paid you to meet new clients.

Make no mistake VRM sucks and you should stop working for them as soon as possible but it doesn't hurt to continue your relationship with the realtors.

Just filled out the package to get more information, and see pricing for my area and maybe negotiate. I know what I need to make some money, if it's there it's there. The open ended flat rate is out of the question. I even ran a few numbers on the flat rate based on quality/condition and size of property, typical turnover times for area, time of year. The problem is you would have to really cherry pick, and that's hard to get away with. Even at that, one or two properties not moving would eat up the margins of the profitable ones. There is no way to make accurate projections.
The advertising one gets just from being out there does in fact have a value. The ability to keep ones coverage area open with sustainable volumes also has a value. But, we all know, you can't make up a loss with volume.
I believe what is going on in my area is, a VRM vendor signed on for the flat rate, took the original payout and disappeared or otherwise, wised the hell up. With an unhappy broker, I was maybe hoping to exploit that angle, if possible, maybe pick up a few wints, or repairs in the process.
I had a good season, and could really just take the winter off if I wanted, but a few work orders a week wouldn't hurt.
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post #9 of 17 (permalink) Old 11-11-2014, 08:50 PM
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Originally Posted by Ohnojim View Post
I believe what is going on in my area is, a VRM vendor signed on for the flat rate, took the original payout and disappeared or otherwise, wised the hell up. With an unhappy broker, I was maybe hoping to exploit that angle, if possible, maybe pick up a few wints, or repairs in the process.
I had a good season, and could really just take the winter off if I wanted, but a few work orders a week wouldn't hurt.

VA - Military - Veterans - No one needs to hear about the exploitation of the VA & Our Veterans on Veterans Day. Safeguard has flat rates also now so its becoming more common.

QUIZ - With a VA loan - its paid / backed by who? Loans are backed by - A - Fannie - B - Freddie - C - FHA - Or D - The VA

My personal preference would be not to take additional money out of the pockets of our veterans by exploiting realtors of VA homes.

Now if a house has gone through a proper P&P cycle it is not at all out of the realm of reason that one can make a reasonable amount of money off of the VRM rates. A properly completed P&P cycle will leave you on the REO side with the following - maintaining the grass, cleaning the property, keeping the property in ready to show condition. If its not to that point have you heard of reconveyance? Additionally if you were to read VRMCO's payment agreement you would know there is always additional funds on work which cannot be completed per allowable.

There is no reason an REO should last more than 30-45 days unless it's not in show condition.

Ohnojim - I really hope you are a Veteran, But you might just be one of those people who likes to flap their jaw when they have no idea what they are talking about. - Only commenting due to your comment about exploiting the VA on VETERANS DAY.

Now if you are a Veteran - You have every right to exploit the VA & the realtors due to the fact that you belong to the VA and money within the VA belongs to our Veterans. If you are not a Veteran I believe you owe a formal apoligy to all of our veterans just for the thought of exploiting the VA on Veterans Day - Exploiting the VA - VA Realtors - VRM - is exploiting our Veterans.



To any Veteran's reading Thank You For Your Service



VA PROPERTY MANAGEMENT INFORMATION


http://www.benefits.va.gov/homeloans...rs/26_12_5.pdf

Veterans Benefits Administration
Circular 26-12-5
Department of Veterans Affairs
July 5, 2012
Washington, DC 20420
NEW VA PROPERTY MANAGEMENT AND SERVICING CONTRACTOR
1. Purpose
. This circular provides details for
transferring VA property management (REO)
and portfolio loan servicing
contracts for the VA home loan guaranty program to Vendor
Resource Management (VRM).
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post #10 of 17 (permalink) Old 11-12-2014, 04:29 AM
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You seem a bit confused. Just because I used the word exploit.

There is no real connection between a Mortgage Field Service Company and Us Veterans. I suppose if one had very limited cognitive capacity, they could create in their minds a tangential connection by just seeing the words VA and exploit in the same paragraph. However if one actually had the ability to comprehend what they were reading and understood English syntax on at least a fundamental level they would clearly see no connection, or strategy to exploit veterans. It is however a strategy to make some money from a company who has their own ideas about exploitation. Some advice for you: Keep your mouth shut until you actually know what the story is. I'm quite sure you had heard this before. Additionally, When one says "exploit the angle" it is a tern used in negotiations. Here's how it works. I do my homework on said company, I know what they need where they need it and what time pressures are on them. I also have a good idea what they can spend overall and any EA. Now I feel a bit better talking to them about money. E.G. I know routine services have not been performed in said number of cycles. I know the company got paid for these cycles. I can ask for more money up to 70% or so of those missed cycles and likely get it approved while at the property. Now I have turned a $40 maid service into $100+ and I and my client are still both ahead. For the $100 you can do a nice job the first time, and it is free money for a few cycles. This is what I mean when I say angle.
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