While much of the important work involved in public record keeping and careful transaction management is designed to prevent fraud, there are thieves who still devise and execute home title scams to steal property from their victims. It may seem absurd to have your property stolen right out from under you, but unfortunately, it’s a reality for some. Clarion Title in Birmingham, AL can help. Read on to find out what you can do to spot and prevent fraud before it happens.
Home Title Scams and How to Spot Them
One of the most common methods for thieves to take legal control of your property is by imitating you in official records. This might mean forging signatures and falsely representing themselves in other official contexts.
In the event that the thief obtains the deed with your forged signature, it can be filed with the county clerk-recorder, effectively giving them ownership of the property. If a thief forges your signature on the deed and convinces the record authorities of its legitimacy. Only unmortgaged houses are at risk for this type of scam. If your house is currently under a mortgage, the deed will include your lender, so imitating you won’t be enough to take control of the house.
Of course, unmortgaged houses are most often owned by older owners who have finished paying their debts and are most at risk for title fraud.
Targeting Senior Citizens
Most scammers prefer to go after senior citizens because they’re uniquely vulnerable. As we mentioned above, older homeowners tend to not have their property tied up with a third party, making their documentation easier to manipulate. Seniors tend to have built more equity in their homes and are generally less tech-savvy, so they may not be as alert to scammers contacting them to take advantage. They’re also more likely to not notice illegitimate phishing attempts and websites.
If you fall into this demographic, be extremely cautious of people contacting you unsolicited claiming to represent the government or a business. Take steps to ensure they’re legitimate. Don’t click on the links they provide and don’t input your information anywhere for them.
Home Title Scam Red Flags
There are signs you should be aware of that indicate you may have been targeted by scammers. If you notice any of these suspicious changes in your finances or if you discover any of these indications they may be attempting to cover their tracks, be alert.
Missing Bills
If you notice you’ve stopped receiving your normal bills, either through the mail or digitally, it might be because scammers have diverted them to avoid arousing suspicion. If they’ve attempted to scam you out of your property, then your future bills may no longer reflect your ownership, so they’d want to prevent you from noticing for as long as possible.
Your bills may even start showing up in someone else’s name, which is another red flag.
Credit Score Drop
Scammers who take out home loans with your equity as collateral make big profits and leave you to pay the bills. When you are unaware that someone has taken out a loan by committing identity theft, you are likely not making payments on that loan. And your life will be turned upside down when the lender sends a foreclosure notice to you.
Of course, you can always assert your right since you’re really under no obligation to repay the loan. Monitoring your credit score regularly is much less of a hassle than dealing with identity theft.
Suspicious Activities Around Your Vacant Property
In case you own another property that’s currently vacant, do not ignore any signs that others might have moved in. You may hear rumors from acquaintances or neighbors. If so, make sure you check them out. It might be easier to dismiss those rumors as nothing to be concerned about than face the nightmare of someone taking over your house.
First Response to Being Scammed
If you have reason to believe you’re the victim of a home title scam, there are important first steps you should take as a response.
- Call the bank or lender, as there may still be ample time to freeze the funds.
- Call the county clerk-recorder and present proof of ownership like a deed, mortgage, or other supporting documents.
- Report the fraud to the local police and the FBI.
- Contact a lawyer who has experience in dealing with title litigation and this type of fraud. They can assist you with the legal steps to take, especially if there are other aggrieved parties involved.
What If You’re a Home Buyer? How Do You Protect Yourself?
If you’re a home buyer and you want to protect your investment against home title scams, you need to purchase homeowner’s title insurance. For one, title insurance companies will do the legwork of making sure there are no other claims to the property before they issue the insurance.
On the off chance that home title fraud has been committed or there are other liens, mortgages, or other claims against the property, the insurance will protect you from any loss or damages arising from this situation.
Need help in making the closing process go as smoothly as possible? Clarion Title can make this possible for you. Our professionals make the closing experience seamless and convenient. With our title insurance and escrow services, you can sit back and just enjoy the process. Contact us today and talk with one of our trained team members who can assist you every step of the way, or simply order your title online.
This material is provided as a courtesy and for educational purposes only. Please consult your title professional for specific information regarding your situation.