Deed Fraud

In the realm of property-related crimes, deed fraud stands out as a particularly alarming trend. This sophisticated scam involves criminals using forged documents to steal homeownership right from under the legitimate owners’ noses. While it may sound like something out of a crime novel, deed fraud is a very real and growing threat in today’s digital age.

At its core, deed fraud is frighteningly simple. If a thief obtains enough of your personal information, they can forge a deed that makes them appear to be the rightful owner of your home. This may seem implausible at first glance – after all, they don’t have the keys, and they can’t just come and live in your house. So what can they actually do?

Unfortunately, the answer is: LOTS.

• They can extract cash from your home equity by taking out a Home Equity Line of Credit (HELOC) or refinancing part of the mortgage.
• They can attempt to sell your home – and yes, this has actually happened!
• They can create complex webs of filings and paperwork that make it difficult to untangle the fraud.

The most insidious part? All of this can happen without your knowledge until it’s too late.

While this scam is nothing new it has been on the rise. You want to make sure to protect not only yourself but your heirs – imagine leaving a house to your children whose title is owned by someone else – what a mess.

In its 2022 report the FBI’s Internet Crime Complaint Center reported on some statistics showing this has been on the rise. The good news is that real estate agents and bank loan officers are being trained to be on the lookout for suspicious characters.

TIPS:

• Be Wary of Unsolicited Offers: If someone contacts you claiming to be a lender with an offer to refinance your mortgage at a better rate, don’t take immediate action. Scammers often try to get you to sign paperwork that essentially signs the deed over to them.
• Consider Owner’s Title Insurance: This type of insurance protects against most types of deed fraud.
• Set Up Alerts: Contact your county office. Some have alert systems where you can receive notifications anytime there’s a deed transaction on your property.
• Be Cautious of Urgency: If anyone contacts you and expresses a sense of urgency, your guard should go up. This is a common tactic used by scammers.
• Trust Your Instincts: As always, if something seems too good to be true, it usually is.

By staying informed and taking these precautions, you can significantly reduce your risk of falling victim to deed fraud. Remember, protecting your home means more than just locking the doors – it also means safeguarding your legal ownership of the property.