Today's Sales Meeting was a discussion about the recent mortgage frauds. Many of you have asked us how this could happen. Well, we can tell you that this is a sophisticated operation and as you know, professional thieves know what they are doing. Homeowners can do a couple of things to protect themselves. First of all, know that mortgage-free homes are the targets. There is both Title Fraud and Mortgage Fraud.
1. Protect yourself from mortgage fraud by getting a Home Equity Line of Credit on your property. This should serve as a way to stop this. You don't have to use it. But it does show up as 'mortgage' on your home, even though you are not using it.
2. Title Insurance will cover you for title fraud. This is how that one couple whose home was sold to innocent buyers were protected. Title Insurance became a thing in the early 2000's. It is still an optional Closing cost. Buyers are asked by their lawyers when they purchase a new home if they would like to add it. Many lawyers actually recommend and/or make it mandatory now. Check your purchase documents. If you bought Title Insurance it will be noted in your Statement and your policy might be included there. Title Insurance does cover fraud, but you must be sure that there is enough coverage. Homeowners can add or upgrade their Title Insurance policy, even though they may have purchased their home years ago.
Have a question about this, call us. We are your real estate advisors for life!