The National Post reported a story where a fraudster impersonated a homeowner with a fake I.D., obtained a mortgage for $300,000 and made off with the funds. A week or so later the innocent homeowner who probably worked for years paying off their own mortgage, received a letter in the mail from the lender informing him of the new mortgage on his title. Now the poor homeowner is left to clean up the mess, let’s hope they had a title insurance policy in place!
How would Title Insurance from Chicago Title have helped?
In this situation, Covered Risk 3 of Chicago Title’s Homeowner Policy would have covered the homeowner. So instead of having to fight to clean the mess on their own, likely incurring significant legal and other fees, he simply would have had to submit a claim to us, and rest easy. Covered Risk 3 of Chicago Title’s Homeowner Policy protects against loss or damage suffered if “Someone else claims to have rights affecting Your Title because of forgery or impersonation.”
It’s important to note that although this particular fraud occurred in Toronto, this type of fraud occurs across Canada from St. John’s to Victoria.