When in the market for a new house there are thousands of things that cross your mind. Is it in a good school district? Within commuting distance of your job? Close to relatives? These questions stem from curiosity and excitement about your future. However, recent studies indicate that the biggest question new property owners should ask before they buy is: “Should I get Home Title insurance?” Home title fraud is an emerging threat.
In the period between 2015-2019 real estate fraud grew 2.6 times faster than credit card fraud. This was the direct result of the new adversary to real estate: home title fraud.
Home title fraud is unprecedented in that it doesn’t involve any physical contact from the scammer.
Home title fraud occurs when a scammer collects information on a victim and uses that information to forged property deeds. This can be done without ever even meeting the victim and as such poses one of the biggest threats to personal security that we have ever seen.
Act Before It’s Too Late
One of the craziest things about home title fraud is that it can happen for years without the victim ever knowing. This has contributed to real estate losses twice as high as credit card losses. Because the victim has no knowledge of the purported fraud, the scammer can continue to take out loans against their house.
This violation will continue until the victim receives a notice of foreclosure, gets evicted, or loses their own property.
This is why title insurance is so important for prospective homeowners. Title insurance protects them from encountering any issues with scammers or past scams on the home. It can help them identify undocumented easements, title forgeries, liens, filing errors and back taxes on the property. It also will uncover any previous inheritance claims or any issues with conflicting wills from the previous owner if that is the situation for the specific property.
The only major issue with title insurance is that it is just for the sales process. Once a homeowner closes on a sale they are left unprotected from future scams. Title insurance does however give them all information on past scams so that they can recognize the signs of similar scammers.
Finding the Way Forward
Services like Home Title Lock, are the next step for wary homeowners after closing the sale on their new property. They step in to help protect the homeowner from any new or future attacks on the property in the digital space. They assist homeowners with specially designed resources and protection plans that fit every unique situation a homeowner may find themselves in.
The combination of title insurance and a service like Home Title Lock can help alleviate any and all fear surrounding home title theft. These two services will ensure that you and your family are being protected in all aspects of the homebuying and homeowning process. While it may not be something that a new homeowner would even think about, it is necessary that we begin to add it to that list of important questions for the homeowning process.