Vod

From CaseyPedia

(Redirected from VOD)

VOD is a Grown Up Business Man term used by Casey Serin in connection with the loan for his Muncy property:

I talk to Bill about Muncy loan and tell him to go for stated/stated since I’m having problems doing a VOD of my wells fargo account. Its a long process and I need to close.^[1]

In this context, VOD almost certainly refers to Verification of Deposit. It can also mean Validation of Debt, a process Serin may go through as he attempts to mitigate his debts.

[edit] Verification of Deposit

A verification of deposit is a standard means of documenting assets:

...[A] second way to document assets is called a verification of deposit (VOD). This requires the borrower to provide the mortgage broker or lender with their bank account info (bank and account number). The broker or lender then sends a standard form to the bank where the account is held. The bank generally verifies the amount in the account, average daily balance, and two months worth of balances. ^[2]

This standard is apparently part of the changeable landscape with subprime loans:

[Countrywide chairman and CEO] Mozilo said he saw the industry’s long-established standards come unglued in the face of new competition. ‘I’ve been doing this for 54 years,’ Mozilo recently said. For many years, he said, ’standards never changed: verification of employment, verification of deposit, credit report.’ But then new players came in with aggressive lending policies. Names like Ameriquest, New Century, NovaStar Financial and Ownit Mortgage Solutions set a new, lowered standard, changing the rules of the game, Mozilo said. ‘Traditional lenders such as ourselves looked around and said, ‘Well, maybe there’s a (new) paradigm here. Maybe we’ve just been wrong. Maybe you can originate these loans safely without verifications, without documentation.’ [...]

Bill Dallas, CEO of Ownit, the nation’s 20th-largest subprime lender in 2006, said he saw the handwriting on the wall in April 2005 after he overheard a rival account executive tell a customer how to get a better rate by committing occupancy or income fraud. I just went, ‘We are hosed as an industry,’ Dallas said. ‘I told our guys, ‘We’re the problem.’^[3]

[edit] Validation of Debt

A validation of debt is a way of attempting to delay collection of or even invalidate a debt, by having the creditor prove the charges are valid.

Validation of Debt is the single greatest tool a consumer can use to deal with collectors, and it should be used before paying or negotiating a payoff for any charge-off or collection. Per Title 15, Chapter 41, Sec. 1609-1692g of the Fair Debt Collection Practices Act, consumers are entitled to request that debt that has gone to collections be validated.

VOD is a formal request for proof that the debt is actually owed by the debtor-in the amount stated, incurred at the time stated, and for the services stated. This process can be especially helpful if there are errors on your customer's credit report that need to be removed. The importance of VOD cannot be overstated. [...] It buys time, gets the collectors off the backs of the consumer, and wipes out debts that are invalid or inaccurately reported.^[4]

Validation of debt is, however, not a magic bullet:

Use the debt validation process wisely. If you know you owe the money and you believe that there is a very good chance that they will be able to produce the supporting documentation, you might want to just go straight to negotiating a settlement before any additional animosity is created. In other words, if a bill collector goes to the trouble of gathering all the paperwork to validate your claim, do you think they'll be in much of a "mood" to offer you a decent settlement at that point? [...] If a debt is still being handled by the original creditor such as Chase or Citibank, for example, don't waste your time asking them to validate the debt because there is a 99.9% chance that they will be able to produce full supporting documentation. The older a debt is, the more likely there will be errors, and that's the best time to request supporting documentation from a bill collector.^[5]