Homeowners, realtors should protect against title fraud: experts
It’s been years since you finished paying off your mortgage, so the letter in the mail from a bank saying you’re in default and now owe money comes as a shock.
Not only did you not take out another mortgage on your property, you’ve never even dealt with that bank before. Yet the documents you’re presented with say otherwise.
At this point, you realize you may have been the victim of fraud.
The chances of that scenario playing out may seem far-fetched, but experts say title and mortgage fraud are growing fast in Canada and homeowners should take steps to protect their properties — and their identities.
Title fraud refers to when the ownership or title of a property is fraudulently changed or documents are forged to allow a fraudster to illegally sell or refinance the property.
The issue gained prominence last year amid two Toronto police investigations in which homes were allegedly listed for sale without the owners’ knowledge, including one where the home was sold.
While those were “extreme” cases, more common is mortgage fraud, where fraudsters obtain a mortgage from a lender under false pretenses, said Daniel La Gamba, a real estate attorney and partner at LD