Understanding title insurance: Fraud flags, private mortgages

By Harjot Atwal (February 9, 2021, 9:41 AM EST) -- At times, title insurers advertise their underwriters as offering a second set of eyes, which can assist in identifying red flags indicative of fraudulent current transactions or past conveyances. When placing a title insurance order, for instance, one question queries whether a transfer/deed has been registered in the past six months in order to help identify flip frauds. This would occur if a recently transferred property has drastically increased in value, and the fraudsters secure mortgage funds of 80 per cent of the higher property value before disappearing. In such scenarios, a second set of eyes reviewing title can offer a valuable protective function....
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