VA Loan Refinancing Scams
by Joe Wallace
A reader got in touch with us recently about an incident connected to her VA home loan.
“I have received two letters regarding IRRRL refinance program, saying the inclusion of my loan into the program was part of the ‘economic stimulus program.’ I called and was told my new mortgage payment would be as indicated in the letter I received, but I could read about it when a loan officer showed up at my house in a few days.
I agreed but the gentlemen who showed up at my house was only a notary. I asked what my monthly payment would be, and he obviously had no clue. So we called back the gentlemen with whom I originally spoke. He was a fast talker and was saying stuff like, ‘It’s all written there in the paperwork’ and ‘Just look over and sign the paperwork. So I hung up on the man.”
“He called back, and explained that my monthly payment would actually be over $500 MORE than what was stated in the letter, and that what’s in the letter is only an approximation. I pointed out that my letter said exactly what the new principal and interest payment was ‘calculated at.’ Didn’t matter.”
…”The man tried to get me to rush sign the refinancing without taking the time to go through the documents or even answer my questions. Had I not hung up on him the first time with his notary sitting in my kitchen, he never would have told me what my ‘new low monthly mortgage payment’ would have been. I would save maybe $50 a month, but add years onto my mortgage for refinance costs, which they would pocket.
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