![]() ![]() On the other hand, title insurance only requires a one-time payment for both the lender’s and owner’s policies. When you look at the bigger picture, though, you will find that $15 is way too much for a monitoring and alert service, especially when you can do that yourself in most places. It is relatively cheap, which is why many homeowners are duped into thinking it is a great deal. ![]() Title lock typically comes on a subscription basis for about $15 a month. Some title insurance policies, though, offer enhanced protection from fraud. In contrast, title insurance protects your claim of ownership caused by defects from before you purchased the policy. It does not come with any form of protection. It is a service that monitors and alerts you of title fraud. ![]() Function/CoverageĪs explained, title lock insurance is not insurance at all. ![]() Title lock insurance is a far cry from title insurance. The addition of a word makes all the difference. The chances of that happening are slim, and the chances of you winning the case are high. You can also simply wait until someone pays you a visit to say that they now own your home. In many places, you can just as easily do this by looking up county records online, which comes free of charge. It does not prevent title theft nor does it help you resolve the problem after someone forges your name on a deed.Īdditionally, title lock only lets you know of title theft after it has already occurred. It only works as a monitoring and notification service. On the subject of legitimacy, title lock really does not protect you from anything. The lender also can’t foreclose because that would be considered a wrongful foreclosure. Again, this is because the scammer never owned your home to begin with. If someone does, that does not mean you will lose ownership of your home because, legally, you still own it.Įven if the scammer uses your property as collateral, the lender would still have no legal claim over your home. Sure, some scammers do it, but just about anyone can forge a deed. Title theft does not even happen very often. Title lock does not provide you with protection from title fraud or theft. A few states even require the presence of witnesses at the signing of property deeds as well as an acknowledgement from a notary public.Īlthough it defines itself as a form of insurance, it is nothing like insurance at all. This is because there are certain requirements that the scammer must meet to successfully obtain “ownership” over the title. Forging a deed is not easily achieved in most states and counties. While the thought of title theft is certainly scary for homeowners, it is a rare occurrence. In other words, it alerts you when someone else has transferred your title to another name. How does title lock work? It is essentially a monitoring service that lets you know when someone has filed legal documents that can affect your ownership of your home. Scammers can then use this as collateral to apply for a loan. Title lock insurance claims to protect homeowners from home title theft or title fraud, which is when someone forges your name on a deed to claim ownership of your home. First, it is important to define what this insurance is or, at least, what it claims to be. ![]()
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