Title fraud is something you need to be aware of as a homeowner. In a time where identity theft is on the rise, the last thing you want to worry about is another way to lose your hard-earned money.
Here’s how real estate title fraud works and ways you can protect yourself against the damage it causes.
A fraudster, using false identification to pose as you, registers forged documents transferring your property to his/her name. Then registers a forced discharge of your existing mortgage. They get a new mortgage set up against your property and bolt with the loan money. Because the mortgage is not being paid, the bank thinks you are the one defaulting on the payments.
Sadly, the only red flag is when your mortgage mysteriously goes into default, and the lender begins foreclosure proceedings. The onus is on the homeowner to prove that real estate title fraud has occurred, not the lender.
How can you protect yourself from title fraud damages?
Title Insurance Policyholders who fall victim to real estate title fraud can rely on their provider, such as First Canadian Title, to defend them. Homeowners save on legal costs, time and the frustration involved in resolving the situation.
Even homeowners who did not purchase title insurance at the time of buying their home can benefit from the protection title insurance provides by purchasing a title insurance policy now.
Although title insurance can’t prevent you from becoming a victim of fraud, it can protect you from many of its consequences and the resulting stress.
If you would like to purchase title insurance on a new or existing property, contact your lawyer or notary. They will help you understand which title insurance policy will protect you from becoming a victim.