How can homeowners reduce the risk of title and mortgage fraud?

Why this becomes a closing problem

A homeowner ignores unfamiliar mail or a credit inquiry because no mortgage payment has changed. Fraud may already involve forged identity documents, a false transfer or a new charge registered against the property.

A practical Ontario example

A homeowner receives correspondence addressed to an unknown borrower at the property. Instead of discarding it, the owner contacts the purported lender, lawyer, police or land-registry professional as appropriate and checks title through qualified legal help.

How the lending routes may differ

• A lender: uses identity, income and fraud controls, but homeowners should not assume lender systems eliminate all risk.
• Alternative/B lender: follows its own verification procedures within legal and regulatory obligations.
• MIC/private lender: legitimate lenders and brokers require transparent identity, ownership, purpose and independent legal processes; pressure to hide parties is a warning sign.

Important boundary: Ontario legislation and legal-registration requirements are not lender underwriting policies. Each lender decides its acceptable borrower, property, priority and documentation requirements, while the closing lawyer determines the legal work needed.

Questions to ask now

• Do I have an owner title-insurance policy?
• Is unfamiliar mail, credit activity or registration present?
• Have I contacted my lawyer and relevant institutions through verified channels?
• Are my identification and email accounts secured?

Rajiv’s practical view

Treat an unexpected title or mortgage warning as urgent. Verify contacts independently and preserve documents; do not send identification or money to someone merely because their message looks official.