Senior individuals with paid-off mortgages are more vulnerable to title fraud and other types of real estate scam schemes. To avoid being a victim of title fraud, you may also take certain precautions, such as safeguarding your personal information.
Who is a victim of title fraud?
Thieves like to target high-value residences that have previously been paid off. Coincidentally, they are frequently residences owned by seniors, who may not be aware of what is going on until creditors arrive at their door. Seniors are also more likely to leave the home for extended periods of time owing to vacations. As a result, they are an ideal target for burglars, who can typically sell the house in a matter of weeks.
Future Homebuyers’ Risk Management
Protect yourself by purchasing title insurance, especially if you are paying cash for the property and are not obliged by the lender to do so. Title insurance safeguards your right to possess a house in the case of title fraud and other “tangled title” issues. Title insurance is obtained during the closing process and is good for the duration of your ownership of the property. If the genuine owner shows up a few weeks after you move in and the hoax is exposed, your title insurance coverage will cover you.
What Can You Do to Keep Your Property Safe?
You should concentrate on avoiding identity theft. Be cautious about what information you disclose online, destroy crucial documents, and retain all original documents in a secure location. Banks and credit bureaus provide a variety of identity protection tools. If you are concerned about an older relative, this may be a viable choice. Another preventative technique is to extend the term of your mortgage or take up a secured line of credit on your paid-off property. Although both of these methods are pricey, they may dissuade potential robbers who target mortgage-free houses.
Identity theft is frequently the cause of title fraud. Someone impersonating you gets fake documentation that permits them to.
Transfer ownership of your home to them, sell your home, and obtain a second mortgage.