03/13/2024 | Press release | Archived content
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Your home is likely the biggest purchase you'll ever make in terms of investment, stability, and personal accomplishment. However, amid the excitement of acquiring a new property, it's crucial you're aware of the potential risks that could compromise your financial security. The biggest such risk is title fraud, which this blog from Landmark National Bank will help you understand.
Title fraud is committed when someone falsely represents themselves as the property owner and then sells or mortgages the property without the true owner's knowledge or consent. This can have devastating consequences for the legitimate property owner, ranging from financial loss to legal complications.
While anyone can be targeted by a title fraud scheme, certain circumstances make individuals more susceptible. Homeowners who own their properties outright, without a mortgage, are particularly vulnerable. Without a mortgage lender actively monitoring the property's title, fraudulent activities can go undetected for a more extended period.
Moreover, vacant or rental properties are common targets of fraud. In these cases, the true owners might not regularly check the property or its associated documents, providing fraudsters an opportunity to exploit the situation under their noses. Additionally, properties with absentee owners or landlords who live out of state may face higher risks, as they might not be as vigilant in monitoring their property records.
Protecting yourself from title fraud involves a combination of vigilance, preventive measures, and securing the right resources. Here are some crucial steps to minimize your risk.
Title insurance is a policy that protects homeowners and lenders from financial loss due to defects in a property title. In the context of title fraud, this insurance can be a crucial guardrail against financial devastation. If you fall victim to title fraud, your title insurance policy can cover your financial losses, legal fees, and other related expenses. Investing in title insurance is a proactive and cost-effective way to mitigate the risks associated with title fraud, ensuring that even if fraudulent activities occur, you have a financial safety net to help you recover.
While title fraud is a real and concerning threat, there are practical steps you can take to protect your property and financial well-being. Regularly monitoring your property records, securing personal information, and using strong passwords are easy ways to reduce your risk of suffering from title fraud. By staying informed and proactive, you can ensure your journey into homeownership is a secure and rewarding experience.
Landmark National Bank is here to help you successfully manage your finances. We offer personalized services that range from checking accounts and savings accounts to bigger investments like taking out a home loan. Whether you're looking to begin your financial journey or improve your current situation, our friendly team of experts can help.
Contact Landmark National Bank or locate a bank branch near you today to get started!