You may have seen ads like this one from Home Title Lock selling Home Title Monitoring services. Or similar ads from other companies selling similar services. While these services are not an outright scam, they aren’t exactly honest either.
It is impossible to “LOCK” your Title!
Title Monitoring services are the ones that typically talk about “home title locks” or “locking the title to your home.” These services are similar in concept to identity monitoring services. They will watch for suspicious activity and alert you – after a crime has been committed. That’s it. They alert you once it’s too late to stop it. They do not “lock your title.” They do not provide prevention. They do not stop the crime in its tracks. They alert you after title theft, deed fraud and mortgage fraud have happened. Some of them might offer some legal services to help you attempt to regain your title after a theft, some don’t. Be sure to read the fine print if you decide to purchase this sort of service.
Title monitoring is done by searching the records at your county courthouse looking for any newly recorded documents against your property. Many counties offer free online access to this information. You could search it yourself once a month for free and obtain the same service these companies want to charge you for.
Title Insurance is an insurance policy that protects a property owner’s right to own, use and occupy a piece of real estate.
Title Insurance is a high cost up front, but the vast majority of people purchase a Standard Owner’s Title Policy when they purchase their home anyway – so you’re already paying that cost. Upgrading to the Enhanced policy is a nominal additional fee. Plus, the Enhanced Policy provides 30 additional coverages for that price, not just the deed fraud coverage. The Enhanced Owner’s Title Policy provides you with full insurance coverage, just like other types of insurance coverage. If a theft were to occur, you’d file an insurance claim.
Home Title Monitoring from companies like Home Title Lock charge an ongoing monthly fee. Coverage ends the second you stop paying. Home Title Lock claims to provide legal support in the event of a title theft. There are currently no reports on the quality of that support.
Neither option will prevent deed fraud or title theft but only title insurance is true insurance coverage to protect your investment.
Home title theft and deed fraud are serious issues that can have devastating consequences for homeowners. Fortunately, there are steps you can take to protect yourself from these crimes.
Whether you are a first-time homebuyer or a seasoned property owner, this information about home title theft will provide you with valuable insights into how to protect your assets and minimize the risk of title theft.
Real estate fraud is a serious issue that can have devastating consequences for homeowners, home buyers, and title insurance agents. Homeowners should be aware of the different types of real estate fraud schemes so they can protect themselves from becoming victims.
