No one is immune to the many financial struggles that have changed the landscape of the U.S., not even our country’s brave servicemembers. It’s already unfortunate that soldiers return home from war to a dark financial and real estate landscape. It’s even worse that, according to government groups, those returning soldiers are targets for loan modification scams.
The U.S. Treasury, the Consumer Financial Protection Bureau and other official groups warn servicemembers to watch out for unethical financial scams that could set them back at a time when they are sincerely trying to create a stable home and environment for their families.
Just like an average homeowner, servicemembers have to deal with the depreciation in the value of their homes. Perhaps their homes are worth less now than they were when they purchased them. Many military families have to seek options in order to try to afford and stay in their homes before losing them to foreclosure or filing for bankruptcy.
In general, scammers understand how desperate homeowners are to stay in their homes. They will play on emotions such as fear and shame to try to get money out of victims. A demographic that scammers are trying to victimize is servicemembers. Sources suggest that servicemembers are tempting targets because scammers know that they get paid by the government on a regular basis, unlike some Americans who have been laid off or can’t find work.
The government also expects its servicemembers to maintain solid financial records. Therefore, military personnel will seek out help and take action to try to remedy their money matters. Scammers hope that the targets will take action despite any red flags because they are more motivated to get a deal done that will stabilize their financial stability.
Our next post will continue with this matter and outline what some of the red flags might be that signify a potential loan modification scam. Check back soon.
Source: CBS News, “Loan scams target U.S. soldiers,” Ilyce Glink, June 7, 2012