New wave of scams targeting VA home loans

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IN Department of Veterans Affairs as well as Consumer Financial Protection Bureau are warning consumers of a new scam aimed at veterans with VA-guaranteed home loans.

According to news releaseThere has recently been a spike in fraud targeting mortgage loan veterans. Scammers usually pretend to be affiliated with the government or a mortgage company and try to trick veterans with some new and innovative methods, as well as some methods that have been around for many years, albeit with a new twist related to COVID-19. or a new technology that allows scammers to hide their identity.

The scammers are trying to convince veterans to refinance their homes, agree to a loan change, or even start sending their mortgage payments to a new address, according to the post.

In the wake of the recent financial crisis stemming from the COVID-19 epidemic, scammers are also trying to convince veterans that their homes are facing foreclosure or that they must pay late fees.

Some veterans reported phone calls, apparently from their local VA office, when a caller informed the veteran that their mortgage had been transferred to new service personnel. The fraudster claims that as a result of the alleged transfer of the mortgage loan, the veteran owes monthly mortgage payments. To avoid foreclosure, the veteran is told that he must pay several hundred or thousands of dollars in repayment to the new mortgage holder at the new address, usually by money order or gift cards. These payment methods cannot be tracked.

Other calls and emails promise unusually low interest rates for mortgage refinancing but require the veteran to make a few down payments before receiving any services. Once the veteran pays the fees, the “mortgage company” either rejects the application or stops communicating with the veteran, the message said.

Other new scams cite existing federal mortgage assistance programs associated with COVID-19 financial assistance initiatives. Fraudsters tell homeowners that the veteran must either transfer ownership of their property or sign confusing documents without going through them, arguing that the assistance programs are close to completion and that everything must be done quickly.

As usual, scammers play on fear and confusion and quickly disappear as soon as they get what they are looking for – your money.

The Consumer Financial Protection Department warns that if you suspect fraud, you should first contact the VA or your mortgage lender to determine if the offer is viable. If this is not the case, you should stop all communication with the scammer and contact your State attorney general and Federal Trade Commission so they can hopefully bring bad actors to justice.

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