“Home title theft” is a form of fraud that identity thieves may attempt after stealing someone’s personal information. It generally occurs when a scammer tries to transfer ownership of a property or take out loans using the home’s title without the owner’s knowledge.
While home title theft is relatively uncommon, it can create serious financial and legal complications for homeowners when it does occur.
Because a home is often one of a person’s largest financial assets, many homeowners choose to take steps to help protect themselves against fraud and identity theft.
Consider Title Insurance
One layer of protection some homeowners use is title insurance.
When purchasing a home, lenders often require lender’s title insurance to protect their financial interest in the property. Some homeowners also purchase owner’s title insurance, which may provide additional protection related to ownership disputes or certain title issues.
Because coverage varies by policy, it’s important to review the details carefully and understand exactly what protections are provided.
Sign Up for Property Alerts
Some counties and monitoring services allow homeowners to sign up for alerts whenever changes are made to:
- Property deeds
- Mortgage records
- Ownership filings
- Public property documents
These alerts may help homeowners detect unauthorized filings or other suspicious activity more quickly.
Some individuals also choose to create online search alerts to notify them if their property is unexpectedly listed for sale online.
Monitor Bills and Mail Carefully
Keeping an eye on your regular financial mail may also help you spot warning signs early.
Potential red flags may include:
- Missing utility bills
- Missing mortgage statements
- Unfamiliar lender notices
- Unexpected account correspondence
Unexpected changes involving financial mail or property-related documents may sometimes indicate identity theft or fraudulent activity.
Review Your Credit Reports Regularly
Checking credit reports regularly may help consumers identify suspicious activity tied to identity theft.
Warning signs may include:
- Unknown loans
- Unrecognized lenders
- Unexpected credit inquiries
- New accounts you didn’t open
Consumers can obtain free credit reports through the official credit reporting agencies, and some individuals also choose to freeze or lock their credit reports for additional protection.
Be Careful With Personal Information
Identity theft often plays a major role in home title fraud, which is why protecting personal information remains important.
Consumers may want to:
- Avoid sharing sensitive information unnecessarily online
- Use strong passwords
- Be cautious of phishing emails or text messages
- Verify unfamiliar callers independently
- Avoid clicking suspicious links
If someone contacts you claiming to represent a government agency, lender, or business, it may be safer to independently verify the organization before sharing personal information.
Helpful Resources
If you’re interested in placing a security freeze on your credit reports, the three major credit bureaus provide instructions online:
- Experian Credit Freeze Information
- Equifax Credit Freeze Information
- TransUnion Credit Freeze Information
The Bottom Line
Home title theft may be relatively rare, but it can create serious financial complications when it occurs.
Monitoring property records, reviewing credit reports regularly, protecting personal information, and understanding available safeguards may help reduce the risk of identity theft and property fraud.
Sources: Yahoo Finance, Rocket Mortgage
