According to a recent article in National Mortgage News, the U.S. Department of Treasury and the Consumer Financial Protection Bureau recently issued a mortgage fraud alert to members of the armed forces community. The alert warns military personnel and their families about possible scams targeted toward struggling homeowners who apply for home loan assistance through the Home Affordable Modification Program (HAMP).

Unfortunately, scammers like to prey on military personnel, so it’s important for service men and women to know how to protect themselves and what free resources are available to help them.

According to a 2003 National Consumer Law Center report, con artists target military personnel because:

• Service men and women receive a steady paycheck with no danger of being laid off.
• They are often young adults who aren’t financially savvy, which can lead to poor decisions.
• The military requires them to keep their finances in good order.

Some ways service members can protect themselves from being conned is to:

• Ask questions. Scammers tend to resist answering even simple questions. So if something doesn’t seem right, walk away.
• Beware of any individual or company that says they can guarantee you a loan modification – only a mortgage provider can approve a loan modification. Also watch for people offering money-back guarantees.
• Walk away from any individual or company that charges an upfront fee for loan modification counseling or services.
• Be wary of anyone who advertises a high success rate in achieving loan modifications.
• Beware of anyone who tells you to stop paying your mortgage payments; to pay them directly instead; and to not contact your mortgage provider.
• Watch out for individuals or companies who say they can improve your chances of getting a loan modification by helping you with your HAMP application for a fee.

The unofficial use of program names or logos of government agencies, non-profit organizations, or lenders can also be a sign that the individual or company may actually be a scammer. If someone claims to be affiliated with HAMP, you can verify this by contacting the Homeowner’s HOPE Hotline at 1-888-995-HOPE.

If you’re an armed services member or civilian who needs free help with your mortgage, you can visit the U.S. Department of Housing and Urban Development website at www.MakingHomeAffordable.gov; or you can call the Homeowner’s HOPE hotline (1-888-995-HOPE) for more information on the HAMP and Home Affordable Refinance Program. For active-duty military personnel or veterans with VA loans, you can call the U.S. Department of Veteran Affairs at 1-877-827-3702 or visit the Loan Guaranty Service Home Loan Program website at www.benefits.va.gov/homeloans/ for help.

If you’re interested in obtaining a VA loan, contact Grandview Lending. A senior mortgage specialist can review your situation with you and help walk you through every step of the VA loan process.