INDIANAPOLIS -- Have you seen the scary posts on social media and ads on late night TV?
They claim thieves could steal the title to your home right from under your nose and transfer the deed to themselves or somebody else. In essence, the ads claim somebody could steal your home without you even knowing it.
I recently got an email from a viewer who saw one of these ominous posts on Facebook and became very concerned. Should she pay roughly $20 a month for “home title lock insurance” in order to keep identity thieves from posing as her and stealing her home?
The short answer, according to the Federal Trade Commission, is “no.”
“Stop,” a recent FTC alert states. “Take a breath. It’s just a ploy to scare you.”
While title insurance can protect you against challenges to your title, like a lien you didn’t know about, the FTC says “title lock insurance” is not the same thing.
Title fraud involves somebody pretending to be you in order to transfer the deed to your home to themselves or somebody else. According to the FTC, “title lock insurance” isn’t really insurance at all, and and it wouldn’t protect you against title fraud.
The service these companies are offering is to monitor your deed for any signs of fraud. So it does nothing to stop it, and you wouldn’t be alerted until after it happens.
What would you be paying them for?
“Again, not a lock, not insurance,” the FTC alert states.
There are free ways to check the status of your title. You can always check your county recorder’s office to make sure you’re still listed as the owner of your property. And some counties, including Marion County, offer property fraud alerts any time a new document is recorded in your name.
Isn’t that exactly what the “title lock insurance” companies are trying to charge you $20 a month for?
Here are some other recommendations from the FTC:
- Check your credit report. Check your credit report for free through AnnualCreditReport.com. Each of the nationwide credit bureaus lets you get free weekly credit reports online.
- Monitor your bills. If you suddenly stop receiving utility bills, that may be a sign of identity theft. If you’re worried, contact your utility company directly.
- Get help. If you suspect identity theft, go to IdentityTheft.gov for a free, personalized recovery plan.