I had heard an ad about title stealing…and how easy it is for scammers to steal the title of your home.., I was talking to my ex and mentioned that. She said they had someone talk to the agents of her company about ways to minimize that risk. I still have a mortgage, so I really don’t have much to worry about since liens have to be removed to transfer a title. But for those who have their homes paid off, this person said that the easiest thing to do is to take out a HELOC on you home. You don’t have to take any money out of it…the fact that it’s there is a lien on your home that would have to be removed, and it’s a bit of a hassle for the scammer.
So as a service to those who have their homes paid off…consider a HELOC to “freeze” your title. They said that they typically target senior citizens since a lot of them don’t have a mortgage anymore.
Everyone should check with their county clerk because many counties will now notify you if there is a lien or title transfer placed on your property. Our county will send ,e an email.
" Real estate title stealing, also known as deed fraud or home title theft, occurs when a criminal uses forged documents and identity theft to transfer a property’s title into their own name. Once they “own” the property, they can take out mortgages against it, steal the equity, sell it, or rent it out, often leaving the true homeowner with significant legal and financial problems.
How Home Title Theft Works
Fraudsters typically target properties with significant equity and those that are vacant, such as second homes or rental properties, because the owner is less likely to notice immediate signs of fraud.
Identity Theft: The criminal obtains the homeowner’s personal information (name, Social Security number, birth date) from public records, the dark web, or phishing scams.
Document Forgery: They use this information to create fake IDs and forge the homeowner’s signature on a deed document, often a quitclaim deed.
Filing the Fraudulent Deed: The forged deed is then filed with the county recorder’s office. In many jurisdictions, clerks are required to record documents that meet basic statutory guidelines, and they don’t verify the identity of the person filing.
Profiting from the Fraud: With the title seemingly in their name, the criminal can then sell the property or take out new loans (such as a second mortgage or a Home Equity Line of Credit - HELOC) and disappear with the cash.
Warning Signs
Homeowners often do not realize they are victims until a major problem arises. Key warning signs include:
Missing Mail: You stop receiving property tax bills, utility bills, or mortgage statements.
Unfamiliar Bills or Notices: You receive bills for new loans or services you didn’t authorize.
Credit Report Changes: Suspicious activity, such as new accounts or hard inquiries, appears on your credit report.
Real Estate Activity: You notice your property is listed for sale or rent without your knowledge, or you receive foreclosure notices despite being current on payments.
How to Protect Yourself
While home title theft is relatively rare, its consequences can be severe. Proactive monitoring and precautions are essential.
Monitor Property Records: Check your county’s property records online periodically to ensure no fraudulent deeds have been filed. Many local governments offer free property fraud alert services that notify you if any documents are recorded against your address; sign up if available in your area.
Monitor Credit and Mail: Regularly review your credit reports (available weekly for free at AnnualCreditReport.com) and carefully check all incoming mail for anomalies.
Purchase Owner’s Title Insurance: When you buy or refinance a home, an owner’s title insurance policy can cover legal expenses and losses from title defects, including post-policy forgeries and fraud.
Be Skeptical of Unsolicited Offers: Be cautious of companies that send unsolicited offers for “title lock insurance” and demand upfront fees, as these are often just monitoring services you can perform for free.
Consult an Attorney: Never sign documents related to your property without having a trusted attorney or HUD-approved housing counselor review them first.
What to Do if You Are a Victim
If you suspect home title theft, act immediately to limit the damage:
Contact your Mortgage Lender to notify their fraud department.
File an Identity Theft Report with the Federal Trade Commission (FTC) to get a recovery plan and an official report.
File a Police Report with local law enforcement to create an official paper trail.
Notify the County Recorder and get a certified copy of the fraudulent document.
Consult a Real Estate Attorney who can help clear your title, which may involve a legal action known as “quieting the title”.
Place a Fraud Alert or Freeze on your credit file with the three major credit bureaus (Experian, TransUnion, Equifax).
Report the Fraud to the FBI’s Internet Crime Complaint Center (IC3)."
In some counties this might be a function of the county recorder. Keep in mind it is an after the event notification but still very worth while and probably the best defense as of now. Its a lot easier to clean this up the sooner you are aware.
Could you hold the property in a trust and have yourself as a lienholder? I am just thinking of ways to easily protect yourself that doesn’t involve banks.
WMJ, Clark Howard has said for years. Freeze your credit files. Then check on your county to ask about house title protection. I think most counties have this now. The county would send you an email if anybody tries to do anything with your house and then you could “Nip it in the Bud!” Like Barney used to say!