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While the world is evolving, crime is also on the rise as criminals get more creative each day
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Recently, title fraud has come into the limelight as scammers are forging documents that can rob you of the title to your home without you realizing
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Picture this: you have always dreamed about buying a type of house that you like, and you finallybuyit. Your name is on the deed, and you are worry-free and living normally until you get a shocking call and realize that it’s no longer yours—someone else’s name is on the deed now!
To put it simply, title fraud is when scammers, or “title pirates,” forge documents so they can transfer the title of a home from a real owner to their own name. Although this type of fraudfirst emerged in 2008, it has become infamous quite recently.
FBI’s 2023 Internet Crime Complaint Center (IC3)reportrevealed there were 9,521 real estate-based fraud complaints in 2023, which resulted in over $145 million in losses. Well, title fraud is one crime that is widely spreading without people even realizing it.
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The fraudsters wisely choose their victims, including vulnerable homeowners, such as seniors, those who own vacation homes or rentals, and victims of identity theft. In fact,most of these propertiesare vacant and are not the main residences of their owners.
If you are wondering how these scams work, then let us tell you that title fraud typically involves a multi-step process. First, fraudsters gather information about a targetproperty, often from publicly available sources.
With the title in their possession, these extra-smart fraudsters can exploit the property in various creative ways. They may sell the property to potential buyers, obtainmortgagesor loans against it, or even lease it out to collect rent.
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Often, the real owner doesn’t even know that their property has been stolen until they get kicked out or find out someone else is trying to borrow money using their property. Sadly, they have to fight a long and difficult legal battle to get their property back.
As scary as the whole scenario sounds, let us assure you that there are a few precautions that you can put into action to stop scammers from taking over the title to your house. Real estate experts have specified these 3 actions that you can take:
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