Understanding How Title Insurance Helps
Ask anyone what their largest asset is, and most folks will point to their home. However, unlike bank accounts, diamond jewelry locked in home safes, and premium vehicles kept inside garages, a home is actually one of the easier assets to steal from people. And, believe it or not, theft can happen in broad daylight at the local county recorder’s office without anyone being the wiser. The method and serious problem that doesn’t seem to get much attention is title theft.
Property Titles are Extremely Vulnerable
When a home is owned, a title record is recorded at the local government county office for that jurisdiction the home is in. That becomes the legal record of ownership for all involved, including the court system and the owners. However, titles can be changed very easily. With the right paperwork, the county recorder will process a title change like any other similar paperwork, effectively changing the ownership of a home from one party to another. While many folks will process title changes with homebuying and homeselling, which is normal and legal, a small group hide within that workload and process fake title changes. When that happens, if not caught, the home effectively has changed hands.
What Exactly Gets Stolen?
Does the above mean someone suddenly has the keys to a home and walks right in? No. Instead, title thieves take out loans and credit financing against the title stolen, receiving real cash for a home used as collateral. All of this occurs without the real owner knowing what’s going on. The problem typically only gets found when the lender realizes the loan has been defaulted and then seeks recovery against the collateral, the home title on record for the loan. By then, the home title is in a complete mess, the thieves have taken off with the money, and the lender is proceeding to seize the home to recover their loss.
Beat the Thieves Before They Get Started
Title insurance Florida protection helps block attempts at fraudulent title theft. Title insurance blocks attempts at the criminal transfer of a property title, the elements needed to execute the title change are secured and verified before action is taken, and the insurance elements protect the financial interests of the parties covered, which can be extremely helpful in resolving any losses. Southern Title can help the entire process and give you peace of mind with home protection and legal prevention of title theft. The last thing you want is your home slipping out from underneath your feet legally. Title insurance is the critical shield to make sure that sort of nightmare doesn’t occur, especially when buying or selling a home.