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Opinion on Title Lock and similar services being offered on TV

  • 1.  Opinion on Title Lock and similar services being offered on TV

    Posted 06-15-2022 08:15
    Please advise as to your opinion as to the value of these type of services being advertised recently to consumers. It appears to be unnecessary protection if you purchased in a conventional manner and got title insurance. I am curious as to other people's thoughts and how they respond to inquiries from the public. 

    Lynn Caudle Boynton, Esquire
    Clifford, Debelius & Boynton, Chartered
    316 East Diamond Avenue
    Gaithersburg, MD 20877
    240-499-7465; [email protected]
    www.clifforddebelius.com

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  • 2.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 06:30

    Here's a link to an article I wrote about these services for the VLTA Examiner some months ago: Title Monitoring – VLTA Examiner Publication

     

    It has links to some news stories as well. FYI, if you're an Old Republic Agent, we developed a brochure about this and it's available in our EZ Market platform.

     

    Colleen Taylor

    Agency Representative | Northern Div.

    Virginia Licensed Producer | Virginia Certified Title Settlement Agent

     

    O: 703.365.2300 | C: 703.973.9224 

    [email protected]

    Old Republic National Title Insurance Company | Old Republic Insurance Group

    7960 Donegan Dr. | Suite 247 | Manassas, VA  20109

    oldrepublictitle.com/va

    Graphical user interface, website  Description automatically generated

     

     




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  • 3.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 09:14
    Lynn,  It's really interesting that you bring this up.  I had a few inquiries and just did a presentation on this.  It's a "sham".   They are a monitoring service.  If you pay them $15/month, they'll check land records on a schedule to see if a deed has been recorded against your property.  If it has, they'll let you know - after the fact.   They don't do anything else.  They don't help you get it fixed or anything.  Also, the enhanced title insurance policy covers this, so if you are selling the enhanced policy, your clients are actually protected if someone "steals their title".   All that said, it is really very rare that a title is "stolen".  These guys prey upon the elderly and the naive and only really go after properties that are "free & clear".  Hope this helps.

    ------------------------------
    Nancy L. Gusman, Esq., CLTP, NTP
    GusmanLegal, LLC
    Beltsville, MD
    (301)563-9669
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  • 4.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 09:41

    My opinion, not worth it. Seems like a scam to me preying on the fear of the elderly, not clear what they do for the $20 monthly fee, their limitation of liability language on their website is $1000.00. What amount of loss do they cover?   I would like to know the real numbers for this type of crime, not title industry cyber-crime in general, how many times a year does this type of crime happen and where? Our existing system provides many layers of protection. Think about the lender side due diligence, documenting the identity and creditworthiness of any borrower, as well as title insurance on the new transaction.

     

    Luke Lynch, Esq.

    Title Officer
    Couch Braunsdorf Insurance Group, Inc.
    701 Martinsville Rd. | PO Box 888 | Liberty Corner, NJ 07938
    Tel: (908) 393-7976 | Fax: (908) 393-7976
    E:
    [email protected] | W: www.couchbraunsdorf.com

     



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  • 5.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 10:46
    See the article linked here Title Lock Insurance is a waste of your money.

    Title Lock does not "lock" your title and is not insurance.  A much better option would be to purchase the ALTA Homeowner's policy of title insurance which actually does provide post policy protection for forgery and impersonation.  I believe in most states, it is a nominal increase in premium over the standard ALTA owners policy and offers much greater protection, not only for fraud, but many other additional coverages as well.

    FOX 5 Atlanta remove preview
    Title Lock Insurance is a waste of your money
    We've all seen the television ads: "The FBI SAYS YOU MAY NOT OWN YOUR HOME. Home Title theft is a serious cyberthreat and growing problem that can and will affect you. Save yourself and your home - with TITLE LOCK." But do you really need this? And if you do, what are you getting?
    View this on FOX 5 Atlanta >


    ------------------------------
    Richard Pierce MTP, NTP
    VP, Area Manager - KS, MO, NE
    FNF Family of Companies
    Overland Park KS
    +1 (816) 274-0210
    ------------------------------

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  • 6.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 11:38
    I would be interested in knowing how they claim to "lock" your title.  To my knowledge there is nothing in Maryland's recording statutes that would allow for the recordation of an instrument that renders prospectively recorded instruments invalid unless they reference some proprietary passcode that purportedly "unlocks" the title.  Other than monitoring MdLandRec to see if something has been recorded what can the company offer of value?  I understand the concern is that someone could fraudulently sell or mortgage your property without your knowledge and there could be a foreclosure, writ of possession and eviction before you find out what happened.  This is not something that your owner's title insurance would protect against as the supposed transfer of title would occur after the date of policy.  I imagine this is something that could happen once in a blue moon, but what service is this title lock company providing that would prevent this?  Most likely just a periodic check of the Land Records to see if something sketchy has been recorded that hasn't been "cleared" with the company before things get out of hand.  Or is there more to it?

    Chuck Roberts



    ALTA Marketplace


  • 7.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 11:46
    Conventional title insurance does not protect you from future theft of your title.
    Home Title Lock does not prevent Title theft but it may alert a homeowner to theft faster and allow them to start legal action to remedy the situation before there are foreclosure proceedings to deal with (which is when homeowners generally find out there was theft). Is that worth $15-20 per month - personally, I don't think so.
    Title theft is incredibly easy to do and is a growing crime.  People target vacant homes, second/vacation homes, rental properties and the elderly with a lot of equity. It may include tricking an elderly person into signing a deed to transfer their home or it may include the use of fake identities and fraudulent notarizations. I just attended a title seminar in Pennsylvania. Old Republic is in the midst of a deed theft claim. And I see reports in the news in Philadelphia several times a year.

    Here is some data from the FBI 
    https://www.fbi.gov/@@search?SearchableText=deed+theft&searchHelpText=To+narrow+your+search%2C+select+a+content+type+option+listed+under+%E2%80%9CMore.%E2%80%9D+To+broaden+your+search+to+other+FBI+sites%2C+select+a+subdomain+listed+under+%E2%80%9CSource.%E2%80%9D&pageSize=20&page=1&sort_on=&sort_order=descending&after=
    I highly recommend agents start selling Enhanced Title policies to homeowners. While it still won't prevent a theft (nothing will), it gives the homeowner additional protection and remedy to correct the problem. 


    ------------------------------
    Cheryl Evans
    CEO
    Zen Abstract
    Perkasie PA
    +1 (267) 855-2021
    ------------------------------

    ALTA Marketplace


  • 8.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-17-2022 09:39

    Absolutely agree with Cheryl.  The enhanced policy will cover this fraud even if it happens in the future.  10% increase in premium is a far easier pill to swallow then $15/mo. ongoing!  Sells itself really.

     

    Gina A. Curran

    Stewart-banner

    President

    Stewart Abstract of Berks County, Inc.

    1100 Berkshire Blvd., Suite 100

    Wyomissing, PA 19610

    PH: 610-372-8201 x115

    Fax: 610-372-8237

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    Stewart Abstract of Berks County, Inc., 1100 Berkshire Blvd., Ste 100, Wyomissing, PA  19610, USA, www.stewartabstract.com

     




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  • 9.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 12:16
    It seems to be a waste of money and worry for a titleholder.  If someone was able to record a false Deed, and the Auditor actually transferred the real estate, processes would begin which would, eventually, alert the Owner.  At that time, it would be simple to prove the forgery; however, some poor Buyer could be convinced to pay an impostor.  The Buyers would be the victims.  Title Lock can't prevent the crime.

    ------------------------------
    Lynn Erickson
    President
    McKesson Title Corp.
    Plymouth IN
    +1 (574) 936-2555
    ------------------------------

    ALTA Marketplace


  • 10.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 12:30
    I have been disturbed by the Title Lock ads, which appear to be a money-making scam, in my opinion.  In looking at their site, they have a renewing subscription service for $99 per year.  If you read the fine print at the bottom of the TitleLock site:

    "*HomeLock's system alert accuracy is limited to correct data from vendors, county and property record systems alike. With each annual subscription, HomeLock customers will receive two hours of resolution services from our Protection Team. If HomeLock determines that legal support is required, customers will receive up to $25,000 in legal coverage for any fraud that has occurred since this membership was activated. This coverage is limited to those incidents of fraud that HomeLock determines qualifies for this coverage. HomeLock will also choose the attorney who will provide these legal services from our network of attorneys. HomeLock also provides $1,000,000 in cyber liability coverage in the event that HomeLock experiences a system failure or breach resulting to an incident that directly affects the HomeLock platform and results in a customer experiencing a loss. This coverage does not extend to any documents or information that had not yet been transferred or uploaded to the DomiDocs platform."

    Title Lock suggests that title policies are of  little value to consumers after paying for them. Their advertising feels like a slam on our industry. While it is true we don't cover post-policy issues, TitleLock tells consumers that they need the Title Lock coverage to protect their property, because we don't cover them.

    It would be interesting to have statistics on how often this has actually occurred, and what is being paid out in claims. I don't know the actuarial tables on this, but it would appear to be a very lucative scam. After all, consider the one-time cost of a title policy vs. paying $99 annually for the extended coverage. Perhaps ALTA should offer this coverage. 


    ------------------------------
    [Jeanine] [Johnson] [Owner]
    [Real Estate and Learning Group]
    [Online Education for the Title Industry]
    [https://landrecs.com/] [651-426-9962]
    ------------------------------

    ALTA Marketplace


  • 11.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-16-2022 15:41
    Title Lock and similar firms are an example of where you need to educate yourself. Most are just a monitoring service where they alert you if a Deed, Mortgage/Deed of Trust, lien, etc. is filed against your property so that you can then file an appropriate claim with your title insurance underwriter assuming an Enhanced Owner's Title Insurance Policy was purchased. In jurisdictions with free online access to real property records, a homeowner could do this themselves.

    Kim
     
    Kimberly A. Gilbert-Toelle, Esq.*
    134 Sedona Court
    Martinsburg, WV 25403
    Home: 304-274-6733
    Cell: 301-910-4625
     
    *Admitted in West Virginia, Maryland, and the District of Columbia only
     
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  • 12.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-17-2022 06:34
    It's a scam and a frustrating one, because people are believing this is a huge problem. Fortunately, some news agencies are starting to take note and are investigating it.  See this one from ABC News. They did a pretty good investigative piece that leaves HomeTitleLock looking pretty scammy. https://abcnews.go.com/US/prolific-ads-featuring-wing-icons-push-questionable-claims/story?id=85365286 

    When asked (and I have been), what I'm telling walk-ins is that what prevents title theft are:

    1. Do they have an Owner's title policy? That's the real protection for adverse claims on their property
    2. Are they still receiving their tax bill? The tax office indexes the public records just the same as we do. They send the bill to the vested owner in our state.
    3. Are they still receiving their utility bills? A true title theft would likely have the electric, gas and water bill moved to a new name.

    I'm also being more proactive. We're a small county, so I can do this. We get images from the clerk and index them in our office. That gives me the luxury of being curious about the validity of the document. If something looks off, such as handwritten text on a web form (versus being prepared by a law firm or bank), or a form of deed not common in the area-for example, a Quit Claim Deed, which is not a legitimate conveyance deed in Texas-I'm taking a second to pop out of indexing and search the property for an example of their signature, such as on a mortgage or easement to see if it matches. If it looks off, I'll notify my manager and see if he wants to reach out to them as a courtesy. This just happened yesterday, as a matter of fact. The signature looked odd, the "legal description" was just the tax office abbreviated notation, and the conveyance was to someone in a city hours away. Fortunately, the deed was real, rushed through because the owner was going in for surgery and deeded the property to their kids after their death using a Texas special deed called a Transfer On Death deed. They're revocable, so it can be a short term thing.

    i was wrong, but was happy to be wrong. I think there really are cases out there, and proving forgery is a pain. I'm ending conversations with the curious that if they don't have a title policy, they can order one any time and it's a single price for as long as they live.  :)



    ------------------------------
    Cathy Clamp CTIP, NTP
    Escrow Officer
    Heart of Texas Title Co., LLC
    Brady TX
    +1 (325) 597-0796
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  • 13.  RE: Opinion on Title Lock and similar services being offered on TV

    Posted 06-17-2022 10:05
    A good friend and wonderful agent, Jeannette Fisher, called me after our mastermind yesterday. She shared a great idea: leverage the millions of $$ these companies are spending to stress the importance of Expanded OTP. Jeannette's actually bringing up the Title Lock commercials with clients asking if they've seen them - many have. She then shares (like Nancy articulated so well) how they'll pay monthly for a service that doesn't really do anything for them (in the RARE event they identify something); when instead, they could pay ONE time for real coverage that actually clears title issues. Wanted to pass this perspective along and also encourage everyone to consider creating some explainer videos or white papers to share with real estate agents. I'm sure they would appreciate the content and pass it along to their clients. Best, Tim

    ------------------------------
    Tim Hooper
    Sales Coach, VP, Mid-Atlantic Business Dev.
    WFG National Title Insurance Company
    Portland OR
    +1 (615) 962-3959
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