The great scope of housing, mortgages and property ownership mean that fraudsters look for loopholes and shortcuts that might fill their pockets. Property title fraud is when somebody takes out a mortgage under an assumed title, but does not own that property in question. The mortgage money - a hefty sum by all accounts - is then used elsewhere and not for its intended purpose.
What does this lead to? Firstly, the mortgage lender has to deal with a property over which it has no charge. They will pursue the legitimate owner of the property, who themselves will be distressed and inconvenienced by the debacle. Meanwhile, the fraudster will do their level best to disappear with the loaned money and spend it on ill-gotten gains.
You would think that such an important process would be watertight. Not so. Property titles only tend to be viewed upon buying or selling a home, which means a long time can elapse before the fraud is detected. Mortgages lenders will only realise something is going on when they check a missed payment, pursue the apparent owner, and realise they are not at fault. By that time, the fraudster will have spent the money or attempted to elope where they cannot be apprehended.
Mortgage companies and property owners alike are answerable to the Land Registry. At the end of the day, they are the ones who hold the database of property titles, and the facility to make a formal report to the authorities. How then should you protect yourself against property fraud? Contact the Registry yourself. It is possible to enter a ‘restriction’ with the Land Registry, preventing somebody from placing a charge against your home without authorised consent. While on the one hand you have to pay a small fee (and likely a solicitor), the benefits are longer-term security and peace of mind that nobody will try to usurp you of what is rightfully yours. Read more about how to do this on the official gov.uk website.
