Warning signs of title fraud may have occurred if you have unexpected notices cease to receive bills.
Title insurance protects you from fraudulent claims on your property. When buying a home, a full title search can be requested, but purchasing title insurance is a great additional step to make sure that the title is protected while you possess the property. Title fraud occurs when an individual transfers the title or deed of your property without your consent. The goal of the criminal is to misappropriate your funds by creating the illusion that another person possesses your property or that you have transferred your property to someone else. If left unchecked, title fraud can lead to foreclosure or even eviction!
How does this happen?
Scammers may forge your signature to transfer the title of the property to themselves, employing a fake ID and filing it with the local recorder’s office. This action creates the impression that you voluntarily transferred the title of your home to them, thereby granting them ownership.
Another possibility is that a scammer may attempt to list and sell a property or secure a loan against it, falsely claiming to be the owner. Fraudulent filings can be challenging to detect unless someone is actively monitoring public records.
Look for these warning signs for title fraud
Scammers frequently target properties that are vacant or lack a mortgage, but there are particular behaviors that may indicate something is amiss. Red flags include a seller offering a vacant property at a significantly reduced price compared to its market value, communicating solely through electronic means while evading phone or video conversations, or insisting on utilizing their own remote notary to finalize the sale. These strategies are intended to evade detection and may indicate that the transaction—or even the seller—is fraudulent. Kiamie Real Estate can assist you in avoiding potential title fraud by collaborating with reputable title and escrow companies, guiding you through secure transactions, and ensuring that your ownership is accurately recorded and safeguarded.