What Is Home Title Theft?
The theft of a home’s title is one type of real estate fraud that involves using the homeowner’s personal information to create a fake deed to get their house. The criminal may seek an equity loan to buy a home or credit line under the homeowner’s name and fail to make the required payments, which could lead to credit and foreclosure.
In the case of vacant properties, such as secondary residences, a fraudster could sell the property without the owner’s permission or let the property out without the owner’s permission.
How Does Home Title Theft Happen?
Home title theft is a crime committed by criminals by committing the crime in various ways, but the most frequent methods are phishing scams as well as data breaches, malware or Wi-Fi networks that are not secure, as well as mail theft. It can also happen if homeowners lose sensitive documents, such as their deeds or mortgage statement. Here’s how a home title theft usually occurs:
Phishing
Phishing is when a criminal appears as a genuine organization or an individual to gain access to homeowners’ personal information. They can do this by making an electronic letter that appears to be from a government or bank agency or by calling the homeowner in a fake manner and pretending to appear as someone else.
Malware
Malware is a type of malware that criminals may make use of to access homeowners’ data. It is possible to put it in the homeowners’ system without the homeowner’s knowledge or even trick users into downloading it using a fake web site or program.
Data Breaches
Data breaches are when criminals gain access to a company’s or an organization’s personal information database. Once they have access to the data, they can sell it to the dark market or employ it to commit fraud on home titles.
Unsecured Wi-Fi Networks
If a homeowner is connected to an unsecure Wi-Fi connection and is insecure, criminals might have access to their data if they’re near enough to the router. They could make use of the information to be able to commit fraud or get the homeowner’s personal information. In the same way, those who connect to the Internet via unsecure Wi-Fi have a higher chance of theft of the title to their home.
Mail Theft
Title theft at home can be caused by theft when thieves take mail from a homeowner’s mailbox to steal the homeowner’s personal information. Once they have information about personal details such as birth dates and Social Security numbers, they could use it to perpetrate fraud. Homeowners can stop this by regularly checking their mailboxes and shredding mail containing sensitive information.
Loss
The loss of essential documents and letting personal information slip into the wrong hands could cause the theft of a home’s title. If a mortgage or deed declaration falls into the wrong hands, criminals could utilize the information to carry out the crime of home title theft.
What Happens If a Property Title Is Stolen?
If the title to a property was stolen, it could cause the homeowner to lose their home due to an unauthorized foreclosure or sale. There are risks when the homeowner is aware of the theft before the home is sold or in foreclosure. The theft could result in legal problems, harm to the credit of the homeowner, as well as damage to the property itself.
If you believe you might be the victim of a theft of their home’s title, There are various options you can follow to help protect and restore their financial and credit score.
- Get in touch with the three major agencies for credit. Contact the three credit reporting agencies that are the largest and request an alert for fraud be added to their credit file. This makes it difficult for anyone to open new accounts under their name. If you find any unauthorized accounts listed in their account, You should dispute them with the appropriate bureau.
- Make a complaint with their local police. Contact the police and credit reporting agencies right away. This will assist you in starting the recovery process and help ensure you are protected from further harm. Police can also assist in creating a trail of evidence which can be helpful if you require legal action.
- Close unauthorized accounts. If you find that a person has opened a new account using the title of their home, call the lenders to inform them about the fraud, and get the accounts shut down. This can include but is not limited to their mortgage lender and a title insurance company. You should also determine if fraudsters have used personal loans or credit cards in their name.
- Get in touch with their mortgage company even if the fraudulent person still needs to request their mortgage company’s Home Equity Loan or Line of Credit Contact, and alert them of the situation. This will help prevent further financial loss and foreclosure.
- Keep the relevant records. Keep track of all correspondence and papers related to theft. This can be useful if you are required to start a lawsuit or another legal decision.
Should You Be Worried About Their Title?
In general, home burglary isn’t as prevalent as other forms of identity theft and internet-connected crimes. The decision to worry about their home’s title is contingent on several aspects, such as how cautious you are about their data and how technologically adept you are.
Homeowners with large amounts of equity in their homes are most likely to get the target for the theft of home titles in the same way as those with more than one property. This is especially true of rental properties, investment properties, and other real estate that are not occupied.
Seniors are more vulnerable to the theft of home titles and other types that involve identity theft. But homeowners who need to keep track of their financial records and credit report are in danger, and so are those who fail to be careful with sensitive mail.
A couple of signs to look for could suggest that their house is the subject of a title theft. They include:
- Receiving collection notices or bills from accounts, you did not create
- Refusal to credit due to information on their credit file that you don’t recognize
- You receive a notice by you from the IRS that you still need to pay taxes.
- Receiving phone calls and emails from creditors about the debts you don’t have
- You find out that their house has been let out for rent or even the property has been sold.
This kind of crime can be devastating, but homeowners can follow to safeguard their personal information as well as their home.
How Their Client Protects Itself From Title Fraud
There are a variety of ways you can safeguard themselves from home title theft:
- Be aware of all their postal mail. If you suddenly cease receiving notices or important letters, this could indicate that you have changed their address with no awareness. Please keep track of their most important documents, like their deed or mortgage statements, and ensure they are safe.
- Keep an eye on the credit score. Each year, you are entitled to a free credit report from all three major credit reporting agencies. Regular review of their credit report can alert you to suspicious activities, like new accounts being opened under their name or unauthorized modifications to existing accounts.
- Be cautious with their data. Shred unwanted documents that contain their details, like bills and bank statements. Don’t carry any of their Social Security cards or birth certificate. Also, don’t divulge private information via the Internet or over the phone unless you know who you’re dealing with.
- Be vigilant about their home. If you see people coming and going from their property or suspect activities in their neighborhood, make a report to the police. Installing a security alarm system can also safeguard properties that are not occupied and stop thieves from taking documents like their mortgage deed or deed.
- Buy an owner’s title policy. If you didn’t choose to sign up for an owner’s Title insurance policy at the time of closing and you’re not sure if you’re covered, now is the time to purchase. The policy will protect you if a lien or other claims have been made against the property when you’re the owner. Title protection services can help even without title insurance; however, these services are typically full of fraud.
