Paying off your mortgage is a huge milestone. No more monthly payments, no more lender, and your home is officially owned free and clear.
But according to recent FBI warnings, there’s still something homeowners should keep an eye on: their title.
The FBI has warned about property fraud schemes where criminals impersonate homeowners and attempt to sell or transfer property they don’t actually own. In some cases, scammers specifically look for vacant properties or homes without a mortgage or other lien.
Why Would a Paid-Off Home Be Targeted?
Having a paid-off mortgage doesn’t make your home unsafe or mean you’re automatically at risk.
However, a property without a mortgage can be attractive to scammers because there isn’t a lender’s lien involved. A fraudster may use publicly available property information, create fake identification or contact information, and pose as the legitimate owner.
From there, they may attempt to list the property for sale or fraudulently transfer ownership, sometimes without the real homeowner knowing anything is happening.
How Can You Protect Yourself?
One of the easiest steps is simply keeping an eye on your property records. Many counties offer free notification services that alert property owners when certain documents are recorded under their name.
It’s also important to protect your personal information and pay attention to anything unusual involving your property, especially if you own vacant land, a second home, or an investment property.
And don’t forget about your owner’s title insurance policy. Depending on the policy, it may provide protection against certain issues involving fraud, forgery, or challenges to your ownership. Coverage varies, so knowing what your policy includes is important.
The Bottom Line
Paying off your mortgage is absolutely something to celebrate. But your mortgage disappearing doesn’t mean your title stops mattering.
Staying aware of your property records, protecting your personal information, and understanding your title insurance coverage can help protect one of your biggest assets.
Have questions about your owner’s title insurance policy or title protection? Blue Brick Title & Escrow is always happy to help.