Title theft is on the rise. Thieves never rest. They are always looking for new ways to steal other people’s money and assets.
Criminals will file phony documents claiming to own property that belong to someone else. The real owner might not be aware of the fraud until they go to sell the home. The criminals may try to sell the property, take out a loan against the property, or rent out the property.
But title theft is still relatively rare overall
- It is very complicated to commit title theft.
- Faking deeds, notaries, and other documents is difficult.
- Do not make title protection purchases based upon scare tactics.
- Monitoring services do not provide a lock to protect against a deed or document being filed.
- And monitoring services do not provide “Title Insurance.”
The FBI’s 2022 Internet Crime Report shows that 11,727 individuals in the US were victims of real estate fraud. This is a tiny percentage of the roughly 87 million homes owned in the US. But this issue is still something to think about.
Monitoring Services
Some counties have a service that alerts homeowners if someone submits paperwork to transfer title. And some don’t.
A private monitoring service may be helpful, but it is no guarantee to guard against future problems. This is why I suggest talking to your title company when buying a property and ask about title insurance. And ask specifics about what level of title insurance may insure against title theft.
Owners Title Insurance versus Lenders Title Insurance
Please note that monitoring services may not alert you before a title transfer happens. They may only alert you after a title transfer has happened. While early warning before a title transfer would be nice, sometimes you are only getting an immediate warning after the fact. That still gives you time to swing into action and contact the county officials to start the process of trying to reverse the damage.
San Diego county has a service called “Owner Alert” that will warn a homeowner if a document is recorded to transfer title. Los Angeles county has a similar service.
In Florida most counties allow you to sign up for these alerts. Go to the Florida Clerk’s website to find your county. Then see if they are a county that has the service.
As I mentioned you can also hire a private service to alert you if there is any paperwork filed to transfer title on your home. One private service you can investigate is Property Fraud Alert.
There are counties that are not setup to alert you if there is a request to transfer title. For example, Travis County TX, where Austin is located, is not setup for this type of service. In an area like that, and even if your house is located in a county that has an alert service, you should always:
- Check your mail for any strange correspondence about your home or vehicle
- Look out for anything that indicates you have a second mortgage, when you do not
- Keep an eye on incoming bills for something that you are not familiar with
Check the status of your property deed manually
I do this for my home monthly. Anyone can check their county recorder’s office for land records and property deeds online. Check your deed’s status regularly to ensure no one is trying to change ownership on your home. And if your county has such a service, set up notifications with your county to alert you to any deed changes.
The Bottom Line
We all measure our own tolerance for risk in life. When buying a car, investing in stocks, or buying and owning a home. Only you can decide how you feel about this, and how you should protect yourself. I will tell you I have the highest level of Owners Coverage Title Insurance Policy I could get at the time I purchased my home. And I am now seriously considering paying for some sort of title theft alert service.
Please schedule a call or email me with questions on title/deed questions, or any other mortgage questions.
Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.
