Should I Be Concerned About Home Title Theft?

Your home is likely one of the largest and most valuable assets you own. While most homeowners take steps to protect what’s inside, such as installing locks, alarm systems, and cameras, there is a less visible risk that often goes overlooked.

There’s a type of fraud that is growing in popularity that can’t be protected with a lock or security system. Home title theft, also known as deed theft, is when someone uses forged documents to illegally transfer the title or deed of a property without the homeowner’s knowledge.

Once the deed is re-titled, these criminals can take out additional lines of credit, sell your home to an unsuspecting buyer, damage your credit, or even put your home at risk for foreclosure.

With so much information circulating, it might be difficult to determine real risks from unnecessary concerns. In this blog, we’re breaking down some of the truths about home title theft and ways you can protect your property.

Understanding Your Risk Factors

If you own a home or property of any kind, there is some level of risk for home title theft. But depending on the type of property or how it is financed, you might be a more attractive target.

Here are some of the types of property that may have a higher chance of home title theft:

• Vacant land: These types of properties can be the most targeted because they can go for long periods of time being unmonitored by owners.
• Unoccupied or second homes: Similar to vacant land, properties where the owner is not present to notice fraudulent activity can increase vulnerability.
• Rental properties: These types of properties can be appealing to thieves as they may pose as landlords to collect rent.
• Properties that are owned free and clear: Properties without existing mortgage lines may be easier targets, because there are not built-in checks in place from financial institutions.

This is not to say that if you have a type of property other than the ones listed above, you are in the clear. The common thread between these is a greater likelihood of being unmonitored or unnoticed. Regardless of the property type you own, you should stay vigilant and keep an eye out for any unusual activity changes within your property.

What Can You Do to Protect Yourself?

There are several steps you can take to help protect yourself against home title theft:

1. Transfer ownership of your property into a trust. Doing this adds an extra layer of complexity and makes it inherently more difficult for criminals to change the title. This approach requires an estate plan, so it may not be the ideal solution for everyone.
   
   
2. Freeze your credit. This can help prevent someone else from opening a fraudulent line of credit or loan in your name. However, this impacts and limits your own ability to access new credit when needed.
   
   
3. Enrolling in a commercial service (ex: Hometitlelock.com or LifeLock). Similar to credit monitoring services that protect you by monitoring changes in your credit, home title lock services monitor your deed activity and inform you if any changes have been made. Of course, one downside to this is the added cost and these only alert you after the fraud has been perpetrated.

In some areas, your county government may offer free services (similar to the commercial services) where you can sign up for alerts to be informed of any changes related to your title. It’s worth checking to see if this service is available where your property is located.

While none of these measures may fully prevent home title theft from happening, they are designed to keep you informed and respond more quickly if your title is compromised.

The Bottom Line

The good news is that while home title theft is receiving more attention, it remains relatively uncommon. It isn't widespread, but it's happening enough to where companies have developed services to offer protection.

Before you pay for home title lock services, remember to consider all your options – especially free offerings if they are available through your county or city government.

Your home is one of your most important assets, and it’s important to remember the title of your home is just as valuable as what’s inside it. Staying informed and proactive can go a long way in helping protect both.

We are here to support you and your most important assets. Click here to get connected with one of our advisers to explore strategies tailored to your situation.