Mortgage Fraud -What to Look For

Title fraud

Title fraud is a new type of real estate fraud in Canada that most often hurts individual homeowners. The most common forms of title fraud involve fraudsters using stolen identities or forged documents to transfer a registered owner's title to himself or herself without the registered owner's knowledge. The fraudster then obtains a mortgage on this property and once the funds are advanced on the mortgage, he or she disappears.

Be alert to identity theft

Pay attention to the following in order to detect fraud early:

? Tax statements or bills are unexpectedly mailed to your home, addressed to a different individual.

? You receive a phone call from a caller inquiring about a new mortgage that has already been arranged for your property.

? Bills do not arrive as expected.

? Creditors contact you regarding purchases you did not make.

? There are discrepancies in your bank or credit card statements.

Title insurance

Consumers can also talk to their lawyers and advisers about alternative methods of protection, including the benefits of purchasing title insurance. Many lenders are requiring borrows to purchase this type of insurance in order protect their property. It is a one time expense that will cover the purchaser for many years and typically only costs a couple hundred dollars.

www.truenorthmortgage.ca

StockMeisterBill
Posts: 2

Re: Mortgage Fraud -What to Look For
Reply #2 on : Wed April 07, 2010, 16:54:22

Yes, title insurance costs an average of $600 in toronto if you do not have any mortgage or title work being done at the time.
This type of fraud is no different that the home being broken into and contents stolen. The gov't is allowing insurance co's to get away with way too much, this is just another useless consumer rip off expense. Banks and trusts create this problem thru lack of due dilligence and then saddle the home owner.

Bart.Zirnhelt
Posts: 2

Re: Mortgage Fraud -What to Look For
Reply #1 on : Wed April 07, 2010, 16:54:01

Why is title insurance not included in regular home insurance?