Title theft. What is it exactly and how is there a cottage industry of insurance to counter it?

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I hear ads on the radio for title theft insurance. Apparently, a thief can forge a document and steal someone’s house. How is it so easy to steal a half-million or more dollar box planted on a lot? And why do people have to pay on a subscription basis to fight title theft? Why can’t someone freeze their title like credit is frozen?

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Simple…because our local government systems and processes are so far outdated.

The Title or Warranty Deed is a standard document that that can be easily forged and recorded at the courthouse to signify a change in ownership. We have a few counties that are piloting programs to send out alerts upon a title change, but its very early stage. From my perspective…and I own a lot of real estate… there are two defenses:

  1. Always have owners title insurance
  2. Always have the property encumbered by a lien, even if the balance is zero.
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