In this new episode of The Real Estate Podcast, I get into mortgage and title fraud and list 8 ways you can prevent yourself from falling victim to a fraudster.
Mortgage fraud is the deliberate misrepresentation of information to obtain mortgage financing that would not have been granted if the financial truth of the applicant had been known.
Title fraud occurs when a fraudster assumes the identity of an individual homeowner and then uses that false identity to pose as the homeowner. They could then assume the title on the home, sell the property or obtain a mortgage on that property or other properties in the homeowner's own name.
Eight ways to prevent yourself from becoming a victor of mortgage and/or title fraud:
1. Use a Password Manager – you have to remember only 1 password (to access the Password Manager)
- Create a different PIN (if applicable) and/or password for ALL accounts (bank, social network, travel sites…) and remember to change them yearly
2. Don’t sign papers until you understand them. If necessary, seek legal advice or have them translated.
3. Always know who you are doing business with. Deal with licensed or accredited lawyers, and mortgage and real estate professionals.
4. Don’t add your name to another person’s credit or mortgage application unless you plan to make payments on it.
5. Get independent advice from a lawyer, accountant, or financial adviser. Talk to them about title insurance or alternative methods of protection.
6. Don’t ever share your usernames, passwords, or personal ID.
7. Before you buy a property, do your due diligence during the conditional period:
(a) get its sales history through the land titles office
(b) consider having it inspected
(c) When making the deposit, be sure it is held ”in trust” by the seller’s realty company or a lawyer (2nd line of defense). Never give a deposit directly to the seller.
Before closing your lawyer will do a Title Search to see if anyone other than the seller has a financial interest in the property, or if there are any outstanding liens or tax arrears.
8. If you will be away from your home for more than 3 weeks,
(a) have the mail held or forwarded to an alternate address.
(b) Have a trusted individual check on your property, turn on lights, water plants, and most importantly, remove the accumulation of junk mail from your mailbox (even from the communal mailboxes in subdivisions) or front door (if in a freehold property or common elements condo)
Zoom presentation available on YouTube
That's it for today's episode. Remember you can always get in touch with me by leaving a comment here, or reaching out through my various channels: Facebook Business Page (Real Estate with Nico), Instagram & Twitter (Nico_RealEstate) or through my website www.nico.royallepage.ca
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