What is Title Theft and Do You Need to Buy a Protection Plan?
Home title fraud is a type of identity theft. Services are soliciting subscriptions that suggest a person can steal someone’s home and kick them out. In reality, this is an unlikely scenario as every home sale needs to go through a title search by a title company. This is not a frivolous investigation and most title companies will discover a problem in the chain of title when a title search is conducted.
The real issue is how a thief could use falsified documents concerning home ownership to secure a loan using your home as collateral. In order to do this, they would also need false identification documents sufficient to take out a loan in your name. Is it possible to do this? Unfortunately, yes. It is also important to note that many subscription services that offer protection against identity theft do not cover this type of fraud.
There are often free services at the county level that will notify you in the event that someone tries to initiate a change to the county records concerning the title to your home. The San Diego Recorder’s office offers a home owner alert service that is free of charge: San Diego Owner Alert. Other counties may also offer this type of service. You should check with your county recorder’s office to see if such service is provided.
For maximum protection, private title insurance for homeowners is available on the open market. The California Department of Insurance offers good information about this type of insurance for homeowners.
Protecting Your Home from Title Theft
Are services that claim to protect your home from title theft necessary? Companies are targeting senios with fear-inspiring mailings and advertising leading people to believe their home can be stolen from them by a scammer recording fraudulent documents with the city.
Although we do not evaluate such services, it is important to know what title theft is and how you can protect yourself against this type of fraud for free.
All you need to do is register your home with the County Recorder. San Diego offers a free service to alert you if there is a change to your title: San Diego Owner Alert
Articles:
San Diego Union Tribune: “Home Title Fraud, How it’s Done…”
Quicken Loans: “Home Title Theft What it is and How to Protect Yourself”