The two main types of real estate fraud include title fraud and foreclosure fraud.
Title fraud is when the title of your property is stolen and the fraudster either sells the property or applies for a mortgage against the property. Title fraud can occur if you have been a victim of identity fraud if the fraudster gained access to personal information and information about your property and finances.
Foreclosure fraud can occur if you are attempting to get a loan to help pay for your mortgage. Fraudsters may take advantage of a person in this type of situation and may try to convince you to transfer the title of your property to them and in exchange they will get you a loan. In reality, the fraudsters will keep the payments you are making to them along with the title of your property which they can use to sell the property or get it remortgaged.
You can put a stop to mortgage fraud by…
- Storing information about your mortgage in a safe and secure place and shredding any old or unnecessary documents.
- Contacting your mortgage company if you are having difficulty paying your mortgage.
- Speaking with a lawyer before you transfer the rights of your property or other assets to another individual.
- Doing your research of the individual or company who is offering to provide you with a loan.
- Consider purchasing title insurance which will help protect you from the losses that can occur if you become a victim of title fraud.
To learn more about real estate fraud and for information about what to do if you are a victim, please visit
https://www.canada.ca/en/financial-consumer-agency/services/real-estate-fraud.html
