When filing for a home loan, there are several options available to those who need the funds. For veterans and their families, there may be some benefits provided in order to help them with high housing costs. The Veterans Association, a government agency that provides assistance to veterans in different areas of life, has created a loan program for home loans. Although this is a great system to help needy veterans in terms of helping with major purchases, there are generally problems with fraud whenever large sums of money are at stake.
VA home loan fraud is defined in the same capacity as any other home loan fraud, as false information is the primary method for applicants to purposefully or accidentally defraud the government. This can range from any number of possible lies concerning major figures. Prominently, defrauders may falsify their capability of paying back loans, asking the government for a significant sum of money they cannot hope to legitimately return. Similarly, fraud is often committed on the grounds of lying about down payment and purchase agreement information.
There are opportunities for third-party groups to interfere with a loan process, throwing individuals into a position of unwittingly defrauding this government program. Any payments to realtors or similar entities need to be reported to the proper authorities when filing for a VA home loan. Additionally, if a third party works on the house, there may be funds that need to be reported to the Veterans Association to adjust the loan.
VA home loan fraud effects everyone. Although these loans are set up for veterans, the source of the money comes from federal sources. This means, at the bottom-most source, these loans are provided through the tax money of the American citizenry. If you would like to learn more about whistleblower suits, contact a qui tam attorney today.