The Better Business Bureau frequently receives calls from consumers about ads for services claiming to protect people from fraudulent property title transfers. Consumers want to know if this really could happen.
The short answer is, yes. Home title fraud happens when someone obtains the title to your property and changes ownership from your information to theirs. The scary part is, you may not even realize it until it’s too late.
Here is how the scam works: Scammers will pick a house, sometimes a second home, rental or vacant house. Gathering personal information from the internet or elsewhere, they take over your identity and assume the role of the property owner or claim to represent you.
They file the necessary paperwork to transfer ownership of your property to themselves, using forged signatures and fraudulent identification. They then sell the home or borrow against the equity.
You might not even know this has happened until a lender starts to send letters of foreclosure on your home due to failure to make payments.
Protect yourself against this scam:
Be careful with your personal information. Treat your personal information like the valuable commodity it is. Make sure you shred any documents that have your bank account information, Social Security number or other personal information. Be suspicious of any unsolicited communication asking for personal information.
Check your credit reports regularly for unauthorized inquiries and accounts. You have the right to…
