Protecting One of Your Most Valuable Assets

For most families, their home is more than just a place to live. It’s also one of their largest financial assets and often represents years of building equity.

We regularly think about protecting our homes from things like storms, fire, theft, and costly repairs. But there’s another potential risk homeowners should understand: title fraud.

While title fraud is relatively uncommon, knowing how it happens and taking a few preventative steps can help protect your property and make suspicious activity easier to catch.

 

What Is Title Fraud?

Title fraud occurs when someone uses stolen or fraudulent information to impersonate a property owner and attempts to record documents affecting ownership of the property.

For example, a criminal may try to file a fraudulent deed that appears to transfer ownership or use the property to obtain a loan without the legitimate owner's knowledge.

Certain properties may be more attractive targets because unusual activity can be harder to notice. These can include vacant land, rental properties, vacation homes, and properties owned free and clear without a mortgage.

The important thing to understand is that a fraudulent document does not automatically mean someone can simply take legal ownership of your home overnight. Property records, title companies, lenders, identity verification requirements, and legal procedures provide multiple layers of protection.

However, identifying suspicious activity early can make resolving it much easier.

 

Monitor Your Property Records

One of the simplest ways to protect yourself is to keep an eye on your property's public records.

Many county recording offices offer free property or recording notification services that can alert you when a document is recorded using your name or associated with your property.

Depending on the service, you may receive an alert if a new deed, lien, mortgage, or other document is recorded. If you weren't expecting the activity, you can investigate it quickly.

Check with your local county recorder or clerk's office to see whether this type of notification service is available in your area.

 

Protect Your Personal Information

Because title fraud often begins with identity theft, protecting your personal information is another important line of defense.

Use strong, unique passwords for important accounts and enable multi-factor authentication whenever possible. Keep sensitive financial and property documents secure, and be cautious about unexpected emails, calls, or messages requesting personal information.

Phishing attempts can look surprisingly legitimate, so avoid providing sensitive information or clicking unfamiliar links until you've verified who you're communicating with.

 

Keep an Eye on Your Credit

Regularly reviewing your credit reports can also help identify suspicious financial activity.

An unfamiliar loan, credit inquiry, or other unexpected change could be an early indication that someone is attempting to use your identity.

Consumers can access free credit reports through the federally authorized AnnualCreditReport.com, and many banks and credit card companies also provide ongoing credit monitoring or alerts.

 

Keep Your Title and Closing Documents

If you purchased an owner's title insurance policy when you bought your home, keep a copy of the policy along with your other closing documents in a secure location.

Owner's title insurance may provide protection against certain covered title defects or fraud affecting your ownership rights, depending on the specific policy and circumstances.

If you're unsure what coverage you have, your title company can help you review your policy and understand its protections.

 

Don't Ignore Unexpected Property Notices

If you receive unexpected correspondence regarding your property from a lender, title company, government office, or county recording office, don't assume it's simply a mistake.

Verify the communication through a trusted contact method and investigate anything that doesn't look familiar.

The sooner potentially fraudulent activity is identified, the sooner you can begin taking the appropriate steps to address it.

 

A Few Simple Steps Can Help Protect Your Home

The good news is that title fraud remains relatively uncommon, and homeowners aren't powerless against it.

Monitoring your property records, protecting your personal information, reviewing your credit, keeping important documents organized, and responding quickly to unusual activity can all help reduce your risk.

Protecting your home isn't only about maintaining the roof, foundation, or HVAC system. It's also about protecting the ownership and equity you've worked hard to build.

If you have questions about your property, its ownership records, or other ways to protect and maintain the value of your home, reach out. I'm always happy to be a real estate resource for you, even when you're not planning to buy or sell.