Mortgage title theft?

I am a victim of mortgage title fraud. What do I do now to recover from mortgage title theft?

You will need to hire a lawyer. You need to defend your right of title to your property. If you have title insurance then you will have coverage for the legal costs. If you are not successful or if the law does not reinstate your property to your name then you will have compensation for the value of your home up to the policy amount plus the legal fees. If you do not have insurance for this coverage then you are facing the financial loss without compensation.

Since the title theft coverage is for the time that you own the property you may consider this not to be of good value if you plan on selling your property in the near future. If you choose to control this risk yourself then you must take steps to protect yourself.

How does mortgage title theft happen? It can be a combination of fraudulent mortgage registered on title and identity theft. This is when your identity if stolen and the person committing the fraud gets money from mortgage financing. You now have a mortgage on your property.

It can occur when there is fraudulent transfer of title and a mortgage registered on title with impersonation done by the person committing the fraud. This person assumes your identity and then transfers your property into another name. This is all done with lawyers who are unaware that the agreement of purchase or sale agreement is false. Now you have lost title in your name and a new mortgage is shown under the "buyer's" title. The money for the mortgage is paid out and the paperwork is finished.

It is recommended that you do all you can to prevent fraud from occurring. You do this by shredding all personal documents and it is wise to keep an eye on your credit report.

Title theft can occur when you have a mortgage or if your property is mortgage-free. There is some protection under the law when this has occurred but it can be time consuming and costly. If your home has been fraudulently conveyed then you are entitled to have your title transferred back to your name unless this transfer was done to an innocent purchaser for value. In almost all cases the fraudulent mortgage is invalid. You do have to go through the process to remove invalid mortgages and retore your title. You need to a lawyer to help you with this. While you are getting your name back on your title or the mortgage removed you cannot sell your home or add a mortgage to the property.

You may have to pay off the mortgage that has been placed on the title if you cannot find legal resolution.

Do talk to your lawyer, broker or agent about mortgage title theft or title fraud. It is always best to weigh your options.