What is Title Fraud?
Title fraud, also called home title theft or deed theft, is when someone steals a homeowner’s personal information and uses it to transfer the home’s title into their own name. This is usually done in stages, starting with identity theft, allowing the criminal to assume the owner’s identity. Then, the thief uses the owner’s identity to transfer the house title to their name. Once the home title is under their name, they are able to “steal” the home owner’s home from under them.
But, how is this even possible? Wouldn’t the homeowner’s notice this and be able to prevent it? While title fraud seems like a type of theft that would be very noticeable–someone besides yourself taking ownership of your property–title fraud is usually less noticeable than a new person moving into your home. Usually, when a criminal commits title fraud, they are attempting to utilize the home’s value or equity for their gain.
For example, the thief may use the home title to apply for a home equity loan or a home equity line of credit. This allows them to gain access to your home’s equity and use it for their own profit. Since you are unaware of the loan or line of credit being used, this leads to failure to make payments, which, of course, leads to horrible ramifications for the actual homeowner: damage to credit score and possible foreclosure on the home.
3 Tips to Prevent Title Fraud
Tip #1: Get Title Insurance
This type of insurance protects homebuyers from possible ownership issues that may arise after they purchase the home. This includes liens, problems or errors which occurred in the property’s past.Title insurance protects against claims because of any negative history attaching to the real estate insured.
Tip #2: Be Protective of Your Personal Information
Do not give any personal information to people or companies that claim to know you or your property. When dealing with sensitive or personal information, ensure you are only giving information to trusted sources like title companies, mortgage companies or personal banks. If you are unsure, contact the institution directly and ask if they had contacted you previously. This simple step helps prevent scammers from using your personal information against you in a home title situation.
Tip #3: Only Use Trusted Title Corporations
It’s important to only use trusted title companies, like McKesson Title, to handle your home title services and questions. With over 100 years of title experience, McKesson Title is a trusted land title company that can help ensure your home’s title is secure, so you don’t have to worry about title fraud. With a team of title experts and an entire title department, you can rest easy knowing your home’s title is safe with McKesson Title.
McKesson Title Offers Expert Help
If you have questions about title fraud and what you can do to prevent it, contact the title experts at McKesson Title. Call them at 574-936-2555 and they will provide a title consultation to help with any land title services you require.