Title Fraud: A Deceptive Scheme
Title fraud is a sophisticated scheme that involves the merging of identity theft and mortgage fraud. The fraudster’s objective is to seize ownership of a property without the true owner’s knowledge. Once the property is under their control, they proceed to cash out the equity by securing a new loan they never intend to repay, pocketing the proceeds for themselves. In some cases, they may even attempt to sell the property to innocent buyers, leaving them unknowingly entangled in the fraudulent transaction. Unfortunately, there are various variations of this type of fraud, making it a growing concern for homeowners and real estate professionals alike.
A Close Call in Florida: “I don’t do refunds, it’s not my problem”
A chilling example of title fraud comes from the story of a female con artist who went on a fraudulent spree, targeting real estate properties. In a bold move, she posed as the granddaughter of a property owner and attempted to sell the property without the owner’s knowledge. Fortunately, a vigilant closing attorney and title issuing agent from Fidelity National Title identified the crime just in time to halt the transaction. Their expertise and attention to detail protected the rightful owner from losing their property to the cunning con artist.
Navigating Capital Gains Taxes and Real Estate Withholding
Beyond the threat of title fraud, homeowners must also be aware of their financial responsibilities when selling a property. Sales of U.S. real property may be subject to capital gains taxes, which is the gain or profit from the sale that is taxed, unless exemptions apply. It’s crucial to understand how these taxes apply at the federal and state levels. For instance, depending on the seller’s state of residence and the property’s location, there may be a requirement to pre-pay an estimated amount of taxes at closing, known as real estate withholding. Being well-informed about these financial obligations can help homeowners navigate the process and avoid potential pitfalls.
Guarding Your Home and Future
Protecting our homes from title fraud and identity theft should be a top priority for every homeowner. By staying informed about the tactics used by fraudsters, like the alarming combination of identity theft and mortgage fraud known as title fraud, we can take proactive measures to safeguard our properties. Choosing a reputable title service company, like Fidelity National Title, with skilled professionals who diligently scrutinize every transaction, is an essential step in defending our homes. Additionally, understanding and fulfilling our financial obligations, such as capital gains taxes and real estate withholding, will ensure a smooth and secure selling process. Together, let’s fortify our homes and secure our future against the deceptive schemes of fraudsters.
