A Title Search is the New Credit Report

ATLANTA, Jan. 8 /PRNewswire/ -- Consumer advocates have always recommended that credit reports be reviewed, to discover possible identity theft or fraud. Identity thieves and fraudsters are now turning to a more lucrative target; property records and titles. For this reason, running a property title search is becoming more popular, to prevent financial loss.

Not only are property records easier to break into, incorrect results are also harder to change back. Unlike credit reports, there is no guaranteed "dispute" process, as there is with credit bureaus.

According to David Pelligrinelli, of TitleSearch.com, the increase in fraudulent and incorrect property title records is dramatic. "Especially in the past 18 months, we have seen a troubling rise in the number of errant records on the property titles we look at," he says. "We are seeing large numbers of unreleased mortgages, which were long since paid off," he adds.

This is expected, given the volume of mortgage refinancing in recent years. When the prior mortgage is left on the property title, there is now a double mortgage. If caught early, it is fairly easy to obtain the appropriate release from the original lender, for recording on the title. With lenders merging, selling out, or closing, it becomes harder to track down the release as time passes.

More serious than title errors are fraudulent recordings. "Most people are not aware that if anyone presents a lien, mortgage, or transfer deed for your home the county clerk, it will be recorded on your property title," Pelligrinelli says. "The clerk does not verify that the signatures are legitimate; their role is record keeping only. While there are some requirements, such as using the correct form, and notarization, these are easily bypassed.

"It is easier to steal your house by using a fake deed, than it is to steal your credit card number. At TitleSearch.com, we hear of fake deeds regularly. Attorneys and consumer advocates are now recommending that property owners run a title search to verify that their property is titled correctly, with no liens."

In 2006, there were numerous accounts of properties being unknowingly transferred away from the owners. In one case, a man presented a fake transfer deed for a $76 million New York hotel. His only mistake was using an outdated form, otherwise, the transfer may have gone through. Also, most counties do not send any notice to the property owner when a transfer or lien is recorded against their title.

Pelligrinelli agrees that running your title search with a reputable company is recommended. "Doing this every year might be overkill. However, running a title search once initially, and then every two years is suggested. Other key times are a few months after a refinancing, or prior to putting a property on the market. Divorces and deaths in the family are often good reasons to check property titles, as well."

Contact: David Pelligrinelli, 706-216-1785, TitleSearch.com.