If you are purchasing a property, it is important to take steps to protect yourself and your family against mortgage fraud. Victims of mortgage fraud can find themselves shoulder unimaginable debt, so know what to look for is key.

Here are a few simple steps you can take, so you won’t become a victim.   

What is mortgage fraud?

Mortgage (or title) fraud occurs when someone impersonates your identity and signs your name to documents in order to change the title on your property and/or in order to take out a mortgage on your title. 

When mortgage fraud occurs and the funds are issued on a mortgage that is in your name, the fraudster disappears, you are left with the debt of the mortgage. Even if the criminal doesn’t actually change the title on your property, they could use the mortgage debt for their own purposes, but you would be held responsible by the lender to pay. 

How to protect yourself against mortgage fraud

There are a few simple steps that you can take to help prevent yourself from becoming a victim of mortgage fraud. 

  • Always work with a high-qualified and experienced real estate lawyer when you make a home purchase. They should ensure that the mortgage title discharge procedures and followed correctly (doing this will help prevent any potential fraudster from taking advantage of you). 
  • Before you purchase a home, have your real estate lawyer check the property ownership history for any red flags or irregularities, or for a false mortgage discharge. 
  • You should also ask your lawyer for documents beyond just the title deed. Ask for additional items such as survey or plot plans, or tax assessments and have your lawyer look for anything that might not add up. 
  • Some lenders will require that you purchase title insurance – but this is actually a good idea even if it isn’t required by the lender. Title insurance is relatively inexpensive, and it can save you a lot of money and heartache should there be an issue with the title down the road. 
  • You can also check the title on your home on a regular basis for anything unusual. To do this, you can conduct a title search either through a provincial registry agent or government website. 
  • If someone who was a co-owner of your property passes away, it is very important to ensure that their name is removed from the mortgage in order to prevent a fraudster from using their name to advance funds. 
  • Check your credit report regularly and report anything unusual. 

What are the signs of possible identity theft and mortgage fraud?

Knowing what the signs of mortgage fraud are, may help you to detect and stop it early. Some common signs of mortgage fraud include: 

  • Bills or tax statements that get mailed to your address but that have someone else’s name on them. 
  • A phone call from someone asking about a new mortgage on your property. 
  • Your regular bills do not arrive as expected. 
  • Calls from creditors regarding loans or purchases that you didn’t make. 
  • You notice discrepancies in your credit card or bank statements. 

Contact Sure Loan today

Do you have questions about mortgage fraud? Our mortgage team is happy to answer your questions and to help you put protection in place for you and your family. Contact Sure Loan For You for more information.

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