What Everybody Ought to Know About Real Estate Fraud?

Submitted by Jasmina on Mon, 2007-01-01 18:16.

Better Business Bureau - How safe are you from identity fraud?Real Estate fraud is a broad term used to describe the different types of fraud:

Mortgage Fraud

Mortgage fraud is a type of real estate fraud that most often hurts the financial institutions that lend money for purchasing property. The most common form of mortgage fraud involves fraudsters acquiring property and then artificially increasing the property’s value through a series of sales and resales between the fraudster and someone in cooperation with them. A mortgage is then secured on the property based on the price that has been artificially inflated.

Title Fraud

Title fraud is a different type of real estate fraud that most often hurts individual homeowners. In comparison to the more than two million real estate transactions that occur each year in the province, there are a limited number of cases of title fraud. The most common forms of title fraud involve fraudsters using stolen identities or forged documents to transfer a registered owner’s title to himself or herself without the registered owner’s knowledge. The fraudster then obtains a mortgage on this property and once the funds are advanced on the mortgage, he or she disappears. This type of fraud is also sometimes referred to as “mortgage fraud.”

Consumer Protection Guide - The Ministry of Government Services (MGS) of Ontario urges Homeowners to protect their property by protecting themselves from Identity Theft!

What is Identity Theft?

Identity theft occurs when someone uses your personal information without your knowledge or consent to commit a crime, such as fraud or theft. Once thieves know enough about you, they may change your address with creditors and apply for new loans or credit cards in your name. Fraudsters have been known to impersonate the owner of a property by obtaining false identification and then transferring property that does not belong to them! You may not be aware of the theft of your identity until months or years have passed.

Identity Theft Resources for Home Owners