Deed fraud is becoming one of the most common crimes.
A criminal fraudulently changes ownership (title) of a property into an entity they control and then they sell the property or take out a loan on all the equity in it. All without the rightful owner even being aware that any of it has occurred, until foreclosure notices start showing up or an angry “new owner” calls the cops. In either event it will take time and money to avoid losing your own home. The best thing that can happen is that you find out fast and get ahead of the fraudster, saving you money and time!
How It Works
short answer
The FBI calls it house stealing and since at least 2008 it is a specific kind of fraud that is on the rise. One of the reasons it is on the rise is because of the ease of the crime. Owning real (as in real estate) property does not require possessing it the same way private property does. All you need to claim title (ownership) is a document with your name on it, a signature from the prior owner selling it to you and it needs to be “recorded” with the local county records office. To a person willing to commit fraud, this is a very low bar and can be accomplished with relative ease. All of the information the fraudster needs is a matter of public record.
What is deed fraud?
Who is most vulnerable?
Anyone who owns a home can become the victim of house stealing. Stealing a homes title is much simpler and easier than stealing private property. But some people are more likely to be targeted than others, in all of the cases the criminal committing fraud is looking to steal the most money they can.
Not owing anything on your home is a huge safety net, but it also means that every last penny of your home’s value can be fraudulently stolen. Home owners in this position are most high up on the target list for house stealing because they represent the largest payoffs.
This is a phrase that is usually used in real estate investment circles, it means that the owner of a property does not reside there. So it applies to anyone who owns a vacation home, a rental home or even an office building. Usually one of the first sign that alerts people to deed fraud is odd or unexpected mailers referring to a recent move. If you do not live at the physical address it is likely that you miss these signs allowing the fraud more time to take hold and cost even more exponential resources.
The more equity in your home, the more likely that you will be targeted. The amount of equity you have can be determined by public records and is information that is made available by multiple services, just google “high equity mail list”. Even if you have a mortgage on your home that does not stop a criminal from stealing your title and being able to pull out equity against your home. All it does is ensure that whoever owns your loan gets paid, it does not offer you, the homeowner, any protection.
Free & Clear
Title
Absentee
Owners
High Equity
Homes
Not everyone experiences the same risk from deed fraud. Take our specialized risk assessment to see where you rank in our risk system.