Real estate title and mortgage fraud are increasing concerns, with thieves and fraudsters capable of stealing your home. Seniors in Canada, especially those who own their homes mortgage-free, are particularly vulnerable.

Fraudsters employ various sophisticated methods, often leveraging modern technology and exploiting gaps in real estate processes. According to First Canadian Title, mortgage fraud in Canada has exceeded $100 million. Real estate or title fraud occurs approximately twice a week in Canada, disproportionately affecting elderly individuals. However, taking simple precautions can prevent you from becoming a victim.

How does real estate title fraud occur?

When you purchase a home, the property's ownership is legally transferred to you, and your name is recorded in government land registration documents as the owner. Real estate fraud happens when a fraudster obtains title to your property using fraudulent transfer documents, typically linked to identity theft. They forge a transfer deed to register the property in their name, often accompanied by falsified discharge of existing mortgages. They then secure new mortgages against the clear title without making payments. It is often not until lenders move to foreclose, that the true owner becomes aware of the fraud.

What is the average value of title fraud cases?

On average, cases of real estate title fraud amount to approximately $300,000. Sadly, these criminals are rarely apprehended or brought to justice. Other forms of mortgage and title fraud include spousal impersonation and legal professionals failing to discharge mortgages.

Which properties are targeted?

Fraudsters often target mortgage-free properties with owners possessing good credit ratings. These two factors easily facilitate a fraudster in successfully acquiring large mortgages. Sometimes, perpetrators are individuals close to the victim, such as paid caregivers. Seniors are particularly susceptible due to their trust, isolation, significant assets, and established creditworthiness accumulated over a lifetime.

Why are seniors frequently targeted?

Seniors are targeted because they tend to be more trusting, isolated, and possess substantial assets and credit history. Mortgage-free homes are especially attractive due to simpler transaction processes.

Most cases of real estate and mortgage fraud stem from identity theft, often involving forged or stolen identification documents such as driver’s licenses, Social Insurance Numbers (SIN), birth certificates, citizenship cards, and passports. Victims face substantial financial losses, banking complications, and damaged credit histories. Defending against title fraud can lead to exorbitant legal fees, with outcomes uncertain.

Protecting Your Information

It's crucial to safeguard personal information to prevent fraud. Stay informed about scams through resources like PhoneBusters and the Canadian Anti-Fraud Centre. If you suspect fraud, immediately contact Equifax, Experian, and/or TransUnion to place a fraud alert on your credit report and consider subscribing to credit monitoring services.

In conclusion, vigilance is key to thwarting identity theft and fraud. It's a good idea, and prudent, to have the title to your property searched periodically to stay up-to-date with any new and unsuspected document registrations on the title to your home. Bedgeburry Park VA has years of experience in title searching and can generally have a search completed within 2-3 hours (this fee includes the costs of purchasing the latest parcel register for your property and any individual documents that you require). Visit our website at https://bedgeburryparkva.com/WEBSITE/Vita-Main/My-Templates/Pricing.html to request your title search, today.

You might also consider investing in products like credit watch services, identity theft protection, and real estate title insurance for added security. FCT.ca is a company that offers existing home owners title insurance, something that until recently has not been available. These proactive measures are invaluable in safeguarding your home and financial well-being.