Sure, some scammers do it, but just about anyone can forge a deed. Title theft does not even happen very often. Title lock does not provide you with protection from title fraud or theft. A few states even require the presence of witnesses at the signing of property deeds as well as an acknowledgement from a notary public.Īlthough it defines itself as a form of insurance, it is nothing like insurance at all. This is because there are certain requirements that the scammer must meet to successfully obtain “ownership” over the title. Forging a deed is not easily achieved in most states and counties. While the thought of title theft is certainly scary for homeowners, it is a rare occurrence. In other words, it alerts you when someone else has transferred your title to another name. How does title lock work? It is essentially a monitoring service that lets you know when someone has filed legal documents that can affect your ownership of your home. Scammers can then use this as collateral to apply for a loan.
Title lock insurance claims to protect homeowners from home title theft or title fraud, which is when someone forges your name on a deed to claim ownership of your home. Unfortunately, none do.First, it is important to define what this insurance is or, at least, what it claims to be. Wouldn't that potential expense make it worthwhile to consider buying title theft insurance? Perhaps, assuming the policy covered such expenses. That will require the assistance of an attorney. In the extremely unlikely event that someone goes go the trouble and risk of committing all these crimes, the cost of clearing the title is the biggest risk to a homeowner. The court may also require restitution for damages caused by the forgery, such as the costs of clearing the title. Kahler: Forgery is a felony in all fifty states, punishable by jail time and heavy fines. Light: And any such moves are against the law. If they show up in your driveway with a moving van, however, they-not you-are the ones at risk of losing their money. If a buyer is naïve enough to buy property without a legitimate appraisal or title insurance, it is possible they could be conned. No legitimate attorney or real estate firm will allow you to buy a property without this insurance. If a title company misses a defect, they must pay for any damages. It will alert the buyer or lender to any defects prior to closing.
Title insurance protects buyers against defects in the title, including liens, fraud and forgery. Only the most naïve buyer will fail to obtain title insurance. Kahler: Even with a cash buyer, a thief's chances of success are small. Light: But there are cash deals in real estate. The required credit reports, employment and income verifications, back tax returns, appraisals, and title insurance are bound to alert you and the lender that something is wrong. Lenders, title companies, and real estate firms have so many safeguards in place that there is almost no chance a fraudulent transfer won’t be discovered. Third, it is next to impossible for the thief to mortgage or sell the property to a knowledgeable lender or buyer.
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