Identity theft is rampant, costing people as well as insurance and banking systems billions of dollars per year. Its proliferation is mainly due to the fact that it works – Of course more criminals will find ways to lie, cheat and steal what they can from innocent individuals if they can get away with it. Any piece of information you leave exposed in the digital or physical world can be taken and used to make money. Most often, people think about the common crimes of banking or credit card fraud. Yet, there is a more catastrophic form of identify theft that any homeowner should understand and be on alert for: Home title fraud.

Home title fraud is when a home or property you own is quite literally stolen out from under you. Through some identity theft measures, fraudsters will then forge a deed along with other records and submit it to your town. If that deed gets recorded, the ownership of your home essentially transfers from you to the ‘new’ owner. From there, the criminal can open a loan against the value of your property and withdrawal the funds before anyone catches on to the act. Or, they can sell the property outright, typically to accomplices in the scheme.

After the change in ownership, an unsuspecting homeowner may continue to pay the mortgage on a home that they legally no longer own. Simultaneously, debt piles up against the property creating a dire financial situation.

What Happens Next?

In many cases, home title fraud is only discovered after the crime has been committed and the perpetrators are long gone. At that point, there is little to no recourse. Often, the victim loses their home. Administratively, it can cost many thousands of dollars in legal and court fees, and it can also tank your credit score if you are unable to pay any loans that have been opened in your name.

When Does Title Fraud Happen?

Title fraud is not as prolific as credit card fraud, simply because it takes more steps and requires a higher degree of savvy. Yet, the payoff for them is huge if they are successful in their crime. In 2017, there were 9,654 cases of general real estate fraud, resulting in more than $56 million in losses. This number has skyrocketed with 11,578 cases of general real estate fraud reported in 2021, totaling more than $350 million, which means it’s happening more often and with greater effect.

Most often, vacant homes and seniors (who are more likely to have a lot of equity in their homes) are targeted.

How Do I Prevent Title Fraud?

As with most things, vigilance is key. Periodically check your public record filings for any changes in ownership. Also keep your eye on mail that comes to your property from a bank or lender as they may pertain to a new account opened using your address. You can also sign up for credit monitoring services or check for local programs that can help monitor and prevent these types of crimes. If you have elderly family, consider checking in on their records or set them up with similar monitoring services so they don’t become victims of home title fraud.

Protection is Available for Bucks County Residents

Bucks County has introduced a free fraud alert system that any Bucks County resident can take advantage of. In their own words:

“If you sign up, you will receive an email from our recording vendor, LANDEX, alerting you anytime a document has been recorded in our office against your name. Businesses are also welcome to sign up for this service.”

Principle Abstract and Settlement Services urges anyone in Bucks County to sign up for this service for added protection and peace of mind. You can find our recent blog on this service with instructions on how to sign up.

If you have any additional questions on home title fraud or would like assistance with a real estate transaction, give our office a call and a member of our team will be happy to assist you.

A real estate closing is complex and involve multiple parties to complete. Each party, from the realtor to legal representatives to mortgage brokers, are pulling to get the transaction completed. After all, they get paid upon the successful completion of the transaction. While most professionals act in the best interest of all parties, you should always be your own best advocate during a real estate transaction. Being prepared and aware during each step of a closing can help you avoid costly mistakes.

In this blog, we review common areas where buyers should be particularly aware to avoid major issues and costly mistakes.

Not Reading the Contract

Contracts are never easy or fun to read. Real estate transactions can include hundreds of pages of documents that you are required to sign. Once you sign those documents, they become binding. There are no ‘do -overs’ when all is said and done. You owe it to yourself to review the documents carefully, and to consider employing an attorney to help you navigate the documents at hand. Ask plenty of questions and come to the closing with a command of all the material you are signing.

Not Disclosing Major Events

Life happens. People lose their jobs, have changes in financial circumstances, etc. Real estate transactions are structured under the assumption that your financial situation has remained unchanged since the time of your pre-approval. Several months can pass between the pre-approval and your closing, and things can change in that timeframe. If they do, you must inform your lender and agents right away. Your lender will require additional copies of your most recent pay stubs as proof of employment. If you can’t provide them and folks only find out at the last minute, the sale will most likely fall apart or need to be restructured.

Using Different Versions of Your Name

Only your legal name as presented on legal documents should be used on your documents in a real estate transaction. Using different and/or shortened versions of your name, nicknames, etc., will cause confusion and require paperwork to be reprinted for the closing.

Not Knowing What to Expect at the Closing

When the closing date approaches, you should know what to expect, who to bring with you, what documents are being signed, what parties are involved and, of course, where and when the closing is taking place to avoid delays. You are certainly welcome to ask questions and take your time at the closing. However, being completely unaware of the process is irresponsible; Again, be your own best advocate.

Big Purchases on Credit

The vast majority of homebuyers use their credit to secure a loan for the purchase of property. A pre-approval is a snapshot of your credit worthiness and it is checked again once closer to closing. If you make a large purchase, such as a car, after a pre-approval your credit can be significantly impacted.

Avoiding these mistakes at closing can help to ensure a smooth transaction on settlement day. The only thing left do is grab your keys and enjoy your new space. Principle Abstract and Settlement Services offers comprehensive title searches, title insurance and work closely with all parties involved to ensure a smooth transaction.

Ready to get started on a residential or commercial real estate transaction? Give our office a call and a member of our team will be glad to assist you.

The internet has simplified our lives and changed the way we get things done in ways that people even 20 years ago couldn’t fathom. We can deposit checks, get medical care, close on a mortgage and pay our bills with just a few clicks. We’re not talking about things we use only occasionally – these technological processes that have become commonplace and engrained in our daily lives and it’s easy to forget just how much we rely on the internet and how much we share about ourselves while online.

With all the good that comes with technology, the bad is always right around the corner. Hackers, fraudsters, and thieves swarm the internet in droves looking for any vulnerability to steal someone’s identity and make money off their efforts. They are relentless and it’s not hard to see why: In 2021, the FBI reported nearly 7 billion dollars in potential losses due to internet based crime in their latest report. In other words, it works.

Real estate activity is not immune to fraud. In fact, the same report cited above ranks real estate fraud 5^th in overall losses. In our latest blog, we list the steps you can take during a real estate transaction that can save you from undo loss or harm.

Create Different Passwords

You will use multiple online tools during a real estate transaction, including portals to upload documents, sign paperwork, collect banking information, etc. You should always use different passwords to prevent real estate fraud and make it harder for cybercriminals to gain access.

Confirm Contact Information

It is good practice to confirm that all professionals are licensed and in good standing with their respective industry authorities. Collect their email and phone numbers and save them. Once you start getting correspondence, always confirm the sender against the information you’ve confirmed. If someone contacts you from a different number or email, be suspicious. Reach out to your trusted contacts and confirm their involvement in your transaction.

Watch Out for ‘Buzzwords’

Lenders and real estate professionals have a fairly standardized way of communicating and will rarely use language that create unnecessary urgency. Words like ‘immediately’, ‘rush’, or ‘warning’ are hardly used in legitimate correspondence. These words are telltale signs of real estate fraud are meant to illicit emotion and can get people to act without thought.

Wire Transfers

Be particularly careful when it comes to wire transfers, requests for funds or account access. In almost every situation, the title company is the only party that will provide wire transfer requests. Any other requests for money should be confirmed through your trusted contacts.

In short, be hyper vigilant as you move through your real estate transaction to prevent real estate fraud. Mishandling sensitive information, responding to a spoofed or phishing email, or processing a wire transfer that isn’t legitimate can come at a significant cost. When it comes to cybercrime, by the time anyone suspects wrongdoing, the damage is already done.

Principle Abstract and Settlement Services has years of experience ensuring the privacy and security of our client’s information. Through secure file sharing tools and proper communication, we strive to ensure our clients feel confident and secure at each phase of the transaction. When it comes to cybersecurity, there is no such thing as overcommunication. If you suspect something is wrong, reach out immediately and we will investigate.

Ready to get started on a real estate transaction? Give our office a call and a member of our team will be happy to assist you.

Title insurance protects property owners, whether they purchase the property or inherit it. In the case of inherited properties, some folks may let their guard down believing that there is no risk involved.

Unfortunately, this is not always the case. When it comes to inherited properties, complex issues can bubble to the surface. In this blog, we review the more common situations that can arise with inherited properties.

Title Issues can Exist

A home that was owned by a loved one for 30 or 50 years can still have title issues – old claims against the property, issues with the deed, such as a misprint on the address, forgery, or perhaps a survey issue can all rear their heads.

Inheritances Can be Tricky

Not all people get along- even families. When someone passes and wills begin to surface, tension and drama can hit a fever pitch. Once a home passes down, it’s not uncommon for aunts, uncles, siblings and cousins to stake a claim to the value of a property. Other non-traditional relationships such as adopted children, second and third marriages and stepfamily can add to the complexity and the number of claims that can exist.

If you’ve inherited a property, title insurance protects you from claims against it, regardless of the outcome.

Those Who Trespass May Claim Ownership

An estate that takes years to settle can make way for yet even more complexity. By the time one takes official possession of a home, a family member, renter or even a squatter may have been occupying that property and might want to lay claim to it.

Known as adverse possession, these situations can be tricky. Having an official title insurance policy in place can help navigate the process of repossessing and/or establishing legal ownership of the property.

Identity Theft Abounds

Thousands of people become the victim of identity theft daily. Unfortunately, older folks are more at risk than most as they are specifically targeted by scammers and fraudsters. Posing as the owner of a property, these con artists can open up lines of credit or other types of loans using the property as collateral. This can go unnoticed for years, until the family member passes and issues begin to pop up during the estate settlement. A thorough title search can help uncover these types of situations that, unfortunately, are becoming more commonplace.

Principle Abstract and Settlement Services has years of experience working exclusively for the benefit of their clients. Whether you are purchasing a property or inheriting one, a thorough title insurance search performed by Principle Abstract offers peace of mind during an already difficult time. Have a property you are in the process of inheriting? Give our office a call today.

The process of buying a home is complex, with many facets to consider, analyze and track. Any given week can involve conversations with agents, lenders, attorneys, escrow agents, home inspectors, contractors, etc. It can be enough to make your head spin, especially if you don’t have a seasoned, experienced real estate agent and/or lender to help walk you through the process. Then there is the property itself: paint, furnishings, layouts, landscaping – the list goes on and on.

It’s easy to lose sight of some of the details that go into a closing. When that day approaches, it’s common for buyers (particularly first-time homebuyers) to get confused with some of the terms being thrown around.

Title insurance, an important component to all real estate transactions, contributes to some of the complexity due to its legal and administrative nature.

We’ve decided to put together a cheat sheet of terms any buyer (both new and old) would benefit from reviewing in the lead up to a home purchase. It is our hope that it will help demystify some title insurance terms you may encounter during your buying experience.

Title Insurance

Title insurance is a required component of a real estate transaction that protects a buyer from a title defect. A title search is almost always performed prior to the issuance of the policy and checks to ensure there are no issues with the property at hand.

Title insurance is one of the few components of a real estate transaction that a buyer can shop for.

Adverse Possession

Adverse possession is when someone is living in a property without consent. Commonly known as ‘squatters,’ a transaction involving adverse possession are more complex and can involve legal ramifications. For instance, an individual who has been living in a dwelling for a certain length of time may be allowed to stay in that dwelling and may even be granted ownership.

Clear Title

“Clear” title is a primary goal in any real estate transaction. The term means that no defects have been found. There is no question as to who owns the property at hand in the real estate transaction, which can now proceed.

Closing

The closing is when the real estate transaction is formally executed and possession transfers from the seller to the buyer. By this time, all steps have been satisfactorily completed, including title search, final inspections, attorney review, etc. There is nothing left but to sign the documents and grab the keys!

Deed Restrictions

Deed restrictions is a term that include any restrictions a property owner might face. This can include certain setbacks, town zoning rules and/or your ability to parcel or subdivide land. They can also restrict your ability to run a business out of your home, erect any signage, etc.

Defect

Defect is a term that we’ve already used which refers to any factor that might prevent the property from transferring from the seller to the buyer. This can include a lien or mortgage against the property, or a judgement of some sort that involves the property at hand.

A defect can also refer to an issue with the property, including structural issues like roofing, foundation, etc. that may severely impact the value of a home.

Easement

An easement on a property allows people to use land or its property in a particular way. This can include a pass through to another piece of property, or an easement for utilities to access the property. For example, if a water main is buried under your property, the entity responsible for maintaining that pipe is almost always within its right to access your property for routine inspections, upgrades, and repairs. Egress is another term for easement and may be used interchangeably.

Foreclosure

Foreclosure occurs when a property owner breaks the terms of their agreement with their lender, most likely for failure of payment. The lender is within its right to repossess the property and the owner may be removed from the property.

Real estate transactions involving a foreclosed property are slightly different than a traditional sale as there may be one or more entities attempting to recoup debts, including the mortgage lender, other banks where loans have been taken out using the home as collateral, local townships where taxes may be owed, and so on.

Lis Pendens

This latin term refers to any pending or active lawsuits involving the property at hand. Lis pendens can stop a real estate transaction in its tracks, deeming the property non-transferrable until the lawsuit is settled and processed administratively.

Principle Abstract Title and Settlement Services has years of experience successfully guiding buyers through hundreds of real estate transaction and protecting their interests through robust title searches. We act as a resource for buyers and seek ensure they are both comfortable and confident each step of the way.

Interested in buying property? Contact our office today and a member of our team will be happy to speak with you.

Unfortunately, fraud is rampant these days. Scammers always seem to be one step ahead of the ‘good guys’ when it comes to data privacy and the more tools available to consumers to help thwart these attacks, the better.

Thankfully, Bucks County has introduced a free fraud alert system that any Bucks County resident can take advantage of. In their own words:

“If you sign up, you will receive an email from our recording vendor, LANDEX, alerting you anytime a document has been recorded in our office against your name. Businesses are also welcome to sign up for this service.”

The risk this program intends to offset is people fraudulently using your name, social security number, etc. in an attempt to open up a line of credit using your information, or many other forms of white collar crime that fall into the category of mortgage fraud.

As mentioned above, the vital piece of identifying and rooting out this type of fraudulent activity is monitoring documents as they are being recorded. Once signed up for this service, you will be alerted any time a document is recorded against your name. At this point, you can get in contact with the county and begin the process of reporting and stopping the fraudulent activity.

We urge our neighbors and friends who both reside and conduct business in Bucks County to sign up for this free and valuable service.

For more information and to sign up, visit: https://www.landex.com/recordalert/?county=bucks