How Can A Title Company Help You in Cases of Consumer Fraud?
A title company acts as an intermediary between a lender and borrower in all the legal matters involved in handling a contract. They prepare all the documentation and statements for both parties and are involved in the process until the contract is closed and all funds are properly distributed.
Types of Consumer Fraud
There are various types of consumer fraud that can occur. If you make an online transaction and the company charges you a price that is higher than the advertised price, it is consumer fraud. If you are a home buyer and bear additional costs that were not initially in any agreements you made, it is consumer fraud. To avoid any inconveniences and possibilities of consumer fraud in a real estate deal, both parties involved should hire a title company.
A title company gives both parties assurances of the legitimacy of the real estate in question. It also issues the title insurance for the property which helps protect the lender or owner of a property against any lawsuits and claims toward the property title.
The title company also completes the abstraction of title which involves the determination of legal ownership, disclosure of mortgages, liens, or any unpaid taxes which must be settled before the conveyance of the property, and discovery of details regarding the leases, restrictions, or easement that adversely affect the property. Hiring a title company can be a means to avoid any grievances in a real estate transaction and avoid any chances of consumer fraud.
The most common consumer frauds faced in real estate are deceitful mortgage schemes. An individual or company that commits deceitful mortgage schemes buys a property below its market price and sells it immediately at a profit, with the help of a false appraiser who verifies the value of the property. The gap between the selling price and the original price indicates whether or not there is mortgage related fraud committed.
Occupancy Fraud occurs when the owner of a property claims that they intend to use it as their principle residence but instead rents the property out to tenants. It is important to hire a professional lawyer to analysis loan risk and avoid any situations that could put you in a legal bind.
Mortgage Fraud by Identity Theft
This occurs when a buyer steals the identity of victim and uses his or her information in their real estate transaction. This buyer will obtain a homeowner’s information and use it to obtain a loan or mortgage and then default on it. This can lead to the loss of assets for the victims associated with the fraud. It is important to be careful where you enter your information and be mindful of your finances to ensure that you are protected. The lawyers at Joseph M. Ghabour & Associates can help you protect your assets from mortgage fraud and help you recover losses in cases of mortgage fraud.