What is a home title scam?
Home title scam happens when an intruder steals a house by making a false deed. Then, they transfer the ownership of the property without the consent of the homeowner. It’s basically when fraudsters take your property and then is able to either dispose of it, or gets the loan without even noticing it. If you fail to pay the home mortgage has not been paid off, your home is put in foreclosure.
The fraudster will first find the property they wish to purchase, typically one that has equity. They then make fake documents to transfer title to the property to themselves. When they file the paperwork with the appropriate authorities, they have now legal title to the property. Then, they offer the house to unsuspecting third parties, or use the home equity line of credit (HELOC) in the name of the home but aren’t able to repay it. Criminals have also obtained several loans on the house.
As per the FBI There are other avenues criminals could employ to get property. The con artists will discover a vacant property such as a rental or a vacation home, and figure out the identity of the owner by doing an investigation. They then get the owner’s name, legally transfer the title into their names, and take the profits from selling the property , or receiving an HELOC. In some instances, the criminals take a home with family members still living there. They then sell the house to a prospective buyer without the family ever knowing about the sale. The owners who are rightfully theirs continue to pay the mortgage on a home they don’t own anymore.
What happens if the home title gets stolen?
After your home’s title has been stolen, criminals can either sell the property to uninitiated home buyers as well as to fraudulent buyers (partners in crime who have fake identities). They could also choose to obtain the form of a HELOC on the home. When they’ve got the cash then they vanish. If you are the actual home-buyer, you aren’t aware of the theft until it’s already occurred. Because the documents are fraudulent the property does not legally belong to scammers The goal of the con artists is to make quick money from the scam before walking off, leaving it hard for anyone to stop the criminals before it’s too late.
Victims can end up losing their homes as a result of fraud in the title of their home. The process of resolving the issue can cost you thousands in legal fees since it involves involving the title company and the buyer, lender and seller, as well as taking the matter to the court. The fraud on your home title can negatively impact the credit rating of your.
How can you protect yourself from the fraud of a home title
Based on the FBI The best homeowner should be doing is being vigilant. The theft of title is not covered by the homeowner’s insurance the HOA as well as your bank. Based on the FBI Here are some other steps you could use to safeguard yourself against the fraud of a title to your home.
- Take a look at any correspondence you receive from an loan company even you aren’t on the letter. Find out what the letter states and then follow up for more details.
- Always check the details about your property with the county’s deeds office. This can be done at no cost or for the cost of a small amount. If you notice something you aren’t familiar with, take a look at the issue.
Other options include signing up to the credit monitoring service, making use of secure passwords and exercising cautiously when clicking on attachments or links to safeguard yourself your identity from theft. If you own an investment property that is used for vacations, you should have an individual check on the property regularly to check for any signs for sale or other unauthorized activities on the property.
What should you do if are a victim of a home title fraud
If you’ve been the victim of fraud involving your home title it is imperative to respond quickly. Contact the financial institutions to ensure they can stop any money that criminals could get grasp of. Contact your county’s deed recording officer and provide them with any documents they require.
In the next step, you must seek out local authorities and the FBI as well as you should contact the FBI, as well as Federal Trade Commission (FTC). If the fraud happened during your closing, your title insurance could protect you from it, so make sure to check with them to find out what your policy says. Finally, you should contact an experienced attorney who can assist you in taking the legal steps required.
Although home title fraud is not common, it’s present and there are victims who were unaware of losing their homes, or suffered huge financial loss. Make sure you are protected keep an eye on your credit report and stay on the alert for any suspicious documents.