quote:

Originally posted by konata88:
How is title fraud committed? And to what end?

Knowing the process for committing title fraud may help identify weak links and preventative measures.

BTW: being retired and w/o income may pose challenges to opening a HELOC.

Curious.

From the interwebz:

"Home title fraud, also called home title theft, typically begins with identity theft. Fraudsters may steal your identity, your Social Security number or other private information in order to forge title transfer documents. Common methods include a forged quitclaim deed, warranty or grant. The scammers then file the new paperwork with the appropriate parties, like your town clerk, to record the transfer of ownership—all without your knowledge.

Once your home's title is in the hands of scammers, you no longer technically own your home—even if you continue to make your mortgage payments. Scammers can use your home as collateral to refinance your home or take out new loans, like a second mortgage or a home equity line of credit (HELOC). They may also illegally sell the house or use it in a rental scam.

Home title fraud can lead to serious financial consequences, including foreclosure and credit issues or having your home sold out from under you. Unfortunately, homeowners don't often realize they've been victims of home title fraud until it's too late."


"Using a Home Equity Line of Credit (HELOC) can act as a protective shield against title theft by placing a recorded lien on your property. Because fraudsters typically target unencumbered homes (those without active loans) to easily steal equity, a lien forces a legal check that complicates their ability to fraudulently sell or refinance your home."



My dad snowbirds, so each of his houses sit unoccupied at least 1/2 the year which is a big reason he's worried.

I was just hoping someone one here had an opinion on it.

quote:

Originally posted by 229DAK:

quote:

He said it was recommended to him by his adviser as the best way to prevent title fraud.

But could someone hack into the bank and tap into the line of credit, somehow? They seem to do it to everything else these days.

Probably, but I'd rather have a $25k problem than a $500k problem