Table of Content
This guide can help you under the homebuying process and how to make the most of your VA loan benefit.Download the Buyer's Guide here. One reason for the hundreds of new reports may be the outreach the department has done to destigmatize the reporting of potential encounters. Army linebacker Andre Carter II would be required to serve two years active duty before playing pro football under legislation already passed by lawmakers.
Offers to receive an escrow refund – Promises are being made to service members/veterans to a specific dollar amount they will receive at loan closing. In actuality, the refund turns out to be much lower than promised, or the refinanced loan results in a higher monthly mortgage payment. More than $4.4 million was obtained in civil money penalties as a result of this sweep. Another early warning sign of a home loan or refinance loan scam to be wary of? ” If your third party won’t give you time to think about the offer, skip them and keep moving.
What can potential VA loan scam victims do?
Learn more about how to recognize avoid caller ID spoofing, phone scams, and unwanted robocalls or robotexts. Search for the name of the company you’re dealing with to see what other people have to say about them. If you don’t find much of an online presence and don’t see reviews from real customers, it’s probably best to avoid that company. Aggressive sales tactics – Mortgage lenders may constantly call or mail solicitations to get your business– before responding contact a VA home loan specialist at the phone number below.
The scammers will often use high-pressure tactics to force victims to act immediately or sign paperwork without reviewing it. Right now, fraudsters are trying to convince homeowners that aid programs are ending and they need to take immediate action or face consequences from being behind on payments. VA loans are recognized as one of the best home financing options for those who meet the VA loan requirements, but recently there’s been an uptick in the frequency of scams targeting homeowners with this type of loan. It’s always important to be aware of common scams and fraudulent schemes so you can protect yourself from becoming a victim, and that’s especially true when the scammers are more aggressive. But it’s not a free ride — in exchange for lender credits, you’ll usually pay a higher interest rate on your new loan.
How to Report a VA Home Loan Scam
Often, VA mortgage scams target people who are having trouble making payments. If you can’t make payments on a VA loan, know that you have options available. Even reliable borrowers can run into financial difficulty for legitimate reasons like a layoff or illness. If you see yourself missing a VA loan payment, contact the VA office in your area or your lender immediately to work out a solution.
Skipped Mortgage Payments
If you see an interest rate that’s much lower than any other lender, make sure you’re aware of the length of the loan and ask questions. If you can’t pay your mortgage or are worried about missing a mortgage payment, you have options. Learn the steps to take, relief options, and places to go to get help with your mortgage.
How to compare VA refinance offers
Understand that certain advertised benefits, such as no out-of-pocket closing costs, skipped mortgage payments, and escrow refunds, are costs that are generally added to your loan and increase the overall principal balance. These are all red flags that may indicate that the loan is less likely to benefit you. Before you proceed with a VA mortgage refinance, be sure to consider the long-term and short-term benefits and consequences of refinancing your loan.
Your home equity isn’t free money — and it’s important to understand the implications of a cash-out refi before jumping in. When you’re short of cash, you may want to dip into some of the equity you’ve built up in your home. This is also known as “equity stripping” or “equity skimming,” because the scammers may suck the equity out of your home, unnoticed by you because you pay nothing out-of-pocket for your refinance. If you’re on a federal or state do-not-call list, remind lenders that it’s illegal to call or text you without prior consent.
These requests can come from individuals offering tests, treatment, or vaccines; conducting surveys; and claiming to be contact tracers. Medical records submitted by the care provider do not appear to be authentic or document signatures do not match. Duplicate bills are sent to VA or duplicate payments or overpayments have not been returned.
The beneficiary has overdue or unpaid bills or medical copayments, or needs do not appear to be met . A deceased veteran’s benefits are being paid and appear to be used by ineligible individuals. A VA loan scam can be quite different from a home loan product that is deceptively marketed.
Who Is Eligible for Servicemembers' Group Life Insurance (SGLI)?
If you know how fraudsters may try to pressure or entice you into making a quick decision on a loan that may not be right for you, it’s easier to withstand those tactics. The VA and CFPB remind military members and dependents that high-pressure phone calls, “official” looking postal mail or electronic mail may come very quickly to you after closing the deal on a new mortgage. Your lender will negotiate an interest rate with you based on these factors; if you know you have credit issues going into the refi loan process but your offer includes “the lowest interest rates ever! ” you should do some research to see what other lenders are offering, too. A legitimate VA refinance loan option is one that is presented by a participating lender, does not violate VA guidelines, and does not include extremely high-pressure sales tactics or “zero thinking time” situations. To find the best deal on your refinance loan, you should apply with at least three lenders and compare their offers.
Borrowers should be extremely wary of lenders with aggressive sales tactics. This is not a unique benefit of a VA mortgage, nor is it a reason to refinance. Also remember that interest rates vary from one borrower to the next. Unexpected calls requesting personal or financial information should always raise a red flag. The first thing you should do is contact your VA Regional Loan Center.
VA home loan scams have become so bad in recent years that the government has stepped in to try to curb them. In 2018, Senator Thom Tillis introduced the Protecting Veterans from Predatory Lending Act of 2018. This act requires a lender to demonstrate the benefit of a refinance to a customer before the process begins. Some VA loan scams involve outright swindling a veteran out of money or even their home, and some involve misinformation that causes a borrower to make a poor financial decision. Either way, these scams can easily cost you thousands of dollars if you fall victim to one.
No comments:
Post a Comment