Is home title theft protection necessary?
The advertising for home title theft sounds ominous and rampant. It may convince you to purchase title theft protection so that you don’t lose your home. However, reality is not quite so grim. Although there are instances where title theft has occurred, certain demographics are more at risk than others. For instance, if you are elderly and unable to monitor your identity or if you own a vacation home or rental property, you may be at risk. However, according to Forbes (forbes.com) the instances of title fraud are extremely rare and the need for title theft protection is unnecessary. Nevertheless, it can happen. Should you buy title fraud protection? Monitoring your identity for instances of identity theft is one way you can avoid title fraud without spending additional money. In addition, know that title lock protection is not insurance. For the most part, it is a monitoring service that merely alerts the homeowner that there may be a problem with someone using the homeowner’s identity. If you decide that fraud protection is a smart move, there are certain benefits that should be part of your fraud protection subscription. If these benefits are not part of your plan, your protection may be insufficient and not worth the money.
Will the title lock company file a complaint on your behalf with the Federal Trade Commission notifying them of your identity theft?
Will the title lock company work with the lender or buyer to determine the fraud and develop a plan for restitution?
Will the title lock company contact the credit reporting agencies to alert them that fraud has been committed?
Will the title lock company offer restitution or a specific dollar amount should you be evicted from your residence and have to find shelter elsewhere?
Will the title lock company offer an attorney (or attorney’s fees) to work on your behalf to recover your lost property?
In addition, there are some legal points that should be considered before purchasing title lock protection. It is true that identity theft happens and someone can forge your name. However, the lender or buyer of the illegally obtained property should have investigated the title, liens, and impairments which are typically done anytime property is transferred or used as collateral. If they did not, the problem rests with them, and you are not responsible for any fraudulent activity. The issue is not so much a loss of property as it is a time consuming task of issuing a complaint and working with the legal system to restore what is rightfully yours. Before you purchase title lock protection, know what is included in your subscription and be a smart shopper.
Mary Fox Luquette, MBA, CLU, ChFC is a finance instructor in the BI Moody III College of Business at the University of Louisiana at Lafayette
This article originally appeared on Lafayette Daily Advertiser: Is home title theft protection necessary?
