Is Title Theft Real? If So, Why Can’t It Be Stopped?
I have written several posts on various topics, including the military, Voting, the economy, and religion in America. A list of links has been provided at the bottom of this article for your convenience. This article will, however, address additional issues in these topics.
Yes, title theft is a real thing, also known as deed fraud or house stealing, where criminals fraudulently transfer a property’s title to themselves. While it’s not a very common crime, it can be financially devastating and typically involves forging documents to sell the property or take out loans against it, leaving the true owner to deal with the consequences, says Rocket Mortgage. Homeowners can protect themselves by monitoring their credit and property records, and by understanding the safeguards that are already in place to protect their ownership rights, notes All About Cookies and First American.
How it works
Criminals obtain property deeds, which are public records.
They use forged documents and sometimes impersonate the owner to transfer the property’s title to their name.
Their goal is to steal the property’s equity by taking out mortgages or home equity loans.
In some cases, they may even attempt to sell the property.
Why it’s a risk
The digital age and public access to property records make it easier for criminals to obtain the necessary information.
The forged deed is not truly valid, but the true owner still has to go through a costly and time-consuming legal process to clear their name, notes First American.
A forged deed can lead to a homeowner being at risk of foreclosure if a criminal takes out a loan against the property and then defaults on it, according to Chase.com.
Sign up for property alerts:Some counties offer property fraud alerts that will notify you if there are any changes made to your property’s records, according to First American.
Review your property records:Periodically check with your local county recorder’s office to ensure there haven’t been any fraudulent changes to your property title.
The Home Title Theft Baloney
Ooooo, terrible things can happen. The latest, as you can hear on radio ads and other venues, is that no-good-niks can steal your home out from under you. But you can buy insurance against such a fate. Whew. But maybe this is a shuck, too.Rick Kahler, president of Kahler Financial Group in Rapid City, S. D, explains:
Larry Light: So tell us about this dire problem.
Rick Kahler: I only learned about this from frantic radio commercials warning that your home can be stolen from you. They claim thieves can deed your property to themselves and then mortgage or even sell it without your knowledge. In fact, they may have done so already. You may have lost all your home equity. You’ll discover the fraud when you are evicted by a foreclosure or new owner.
Of course, after all these alarms, the ads offer a solution: buy their title theft insurance. They promise to shield your title, monitor it 24/7, and alert you when a fraudulent title transfer is filed. One company charges $79 a year for $1,000,000 of title theft insurance. It’s highly unlikely any such company will ever pay out a dime of insurance.
Light: How come?
Kahler: The claims are so over the top that these companies either don’t understand the law or are intentionally bending the facts. Like most things, these outlandish claims include a grain of truth. It is true that anyone can forge your name to any document, including a deed supposedly transferring title to the forger. Such a deed could be filed with the county register of deeds.
Light: Sounds ominous.
Kahler: That doesn’t mean someone has stolen your title. First, a forged deed is not valid and conveys nothing. Only you can legally transfer your title to a third party. If a buyer or a lender rely on a forged deed and don’t do their due diligence on a property’s title, they are out of luck. They, not the legitimate property owner, will ultimately lose any money paid to the thief.
Second, a would-be forger could easily get a blank deed form online and fill in your property’s legal description obtained from public records. However, the signature must be certified by a Notary Public, who is required by law to verify your identity.
Third, it is next to impossible for the thief to mortgage or sell the property to a knowledgeable lender or buyer. Lenders, title companies, and real estate firms have so many safeguards in place that there is almost no chance a fraudulent transfer won’t be discovered. The required credit reports, employment and income verifications, back tax returns, appraisals, and title insurance are bound to alert you and the lender that something is wrong.
Light: But there are cash deals in real estate.
Kahler: Even with a cash buyer, a thief’s chances of success are small. Only the most naïve buyer will fail to obtain title insurance. Title insurance protects buyers against defects in the title, including liens, fraud and forgery. It will alert the buyer or lender to any defects prior to closing. If a title company misses a defect, they must pay for any damages. No legitimate attorney or real estate firm will allow you to buy a property without this insurance.
If a buyer is naïve enough to buy property without a legitimate appraisal or title insurance, it is possible they could be conned. If they show up in your driveway with a moving van, however, they—not you—are the ones at risk of losing their money.
Light: And any such moves are against the law.
Kahler: Forgery is a felony in all fifty states, punishable by jail time and heavy fines. The court may also require restitution for damages caused by the forgery, such as the costs of clearing the title.
In the extremely unlikely event that someone goes go the trouble and risk of committing all these crimes, the cost of clearing the title is the biggest risk to a homeowner. That will require the assistance of an attorney. Wouldn’t that potential expense make it worthwhile to consider buying title theft insurance? Perhaps, assuming the policy covered such expenses. Unfortunately, none do.
Home title theft: What is it and how to protect yourself
You may have heard about home title theft — perhaps you’ve conjured up an image of someone stealing a special piece of paper from your filing cabinet in the middle of the night. Home title theft is a real crime, but what exactly does it entail? Let’s dive into some specifics surrounding home title theft, and a few ways you might protect yourself as a homeowner.
What is home title theft?
Home title theft is a type of real estate fraud. It occurs when a person fraudulently claims ownership to a property that they do not rightfully own. It may include the physical theft of documents, but often occurs when a fraudster impersonates the home owner or falsely claims to own property. Often, the fraudster will obtain a victim’s personal information (like a social security number) and use the false identity to act as though the victim’s property is their own. Another common scenario involves a fraudster creating fake deeds to make it appear as though the legitimate owner has transferred their property to the fraudster. A deed is a document that gives a person an interest in property. It is the most common way a person receives “title” or legal ownership, called title, to real property. You can also receive interest through a last will and testament or a court order, but the most common instrument is a deed. Deeds are recorded in public records that are often accessible online. This means fraudsters can access copies of deeds without obtaining the original deeds, which people may store in secure places. Thus, it is possible for a fraudster to claim ownership to a property without accessing the original deed. Fraudsters will steal title in order to take advantage of the true homeowner’s equity by obtaining a mortgage or home equity loan. The fraudster may even attempt to falsely sell the property for profit.
What to do if your deed is missing or stolen
If you believe someone is attempting to claim an interest in your property, then you may have genuine cause to worry about title theft and should consider taking the following steps:
Contact your mortgage lender: Your mortgage lender will be able to help point you in the right direction. They may have a process for dealing with suspected title theft to help you protect your asset and prevent the fraudster from opening other accounts in your name.
Put credit bureaus on notice: If you believe you’re a victim of home title theft, you’re likely also a victim of identity theft. Fraudulent accounts that go unpaid may negatively impact your credit score. By notifying the credit bureaus and requesting a fraud alert be placed on your credit file, you’ll be able to prevent and dispute suspicious activity with more ease.
File a police report: Home title theft and identity theft are crimes. By filing a police report, you’re beginning paper trails that may help protect you if the situation advances.
File a Property Fraud Alert: Some localities offer a free service that helps members of the public protect their property from fraud by monitoring the property records for title theft. Contact your local appraiser or recorder’s office to see if your locality offers this service.
How to monitor and protect your home title
By now, you may be understandably interested in finding ways to more actively protect yourself from home title theft. One potential way to do so might be to get title lock insurance, a service that monitors your deed on your behalf. If there’s any suspicious activity or your title has been transferred under another name, the service is meant to notify you. While title lock insurance does use the word “insurance,” it’s important to understand that it doesn’t necessarily operate as a typical homeowners insurance policy would. Though title lock insurance companies offer notifications about your title, they typically only notify you after the deed (no pun intended) has been done. Title locks don’t generally troubleshoot the issue or provide any sort of coverage for it.
Is a home title lock necessary?
A home title lock (or title lock insurance) isn’t required for homeowners. While home title theft is certainly a scary concept, it isn’t known to be common, so the money spent on a title lock subscription might be put to better use elsewhere, like investing in your home. You may also want to consider getting title insurance before you become a homeowner, which helps clear up and protect future claims against your property’s title.
In summary
Home title theft is a subset of identity fraud. It happens when someone successfully steals your deed and transfers your property under their name. They may try to borrow against your home equity or even attempt to rent or sell the property for personal profit. If you notice your deed is missing or suspect it was stolen, consider reaching out to your lender to discuss the best next steps to help protect your assets.
Should You Fear Home Title Fraud? What Homeowners Need to Know
When Debi Gotlieb looked up her father’s home online in late 2019, she was shocked by what she saw. “Zillow’s name was on the deed,” she told a local news station in Arizona, “and it had been on the market for a day.”1
Gotlieb’s father had died the year before, but the family still rightfully owned the property. When she arrived at the house, she found the locks changed and the home gutted.
“Everything my dad owned was gone,” she said.
Gotlieb’s family was a victim of home title fraud.
A criminal had forged her father’s signature and notarization, taken possession of the home, and sold it, evidently to Zillow. In other cases of home title fraud, victims are still living in the home when they realize it’s legally no longer theirs or arrive at a vacation or investment property to find it occupied.
While Gotlieb’s story is true, how at risk is the average homeowner? According to the FBI, 11,727 people reported real estate fraud in 2022, totaling nearly $400 million in losses.2 Home title fraud is an untraceable subset of that figure, which includes mortgage fraud and other property-related scams. And yet, news reports across the U.S. and alarming advertisements for home title protection services raise concerns about the crime.3,4,5
Here’s what homeowners should know about home title fraud and how to protect themselves — from both scammers and potentially questionable services claiming to protect them.
What Is Home Title Fraud?
Home title fraud is a scam in which a criminal fraudulently transfers a home title over to themselves, effectively stealing a home.6 Their aim is typically to either resell the home or use the home’s equity to take out multiple loans before disappearing. The results can leave rightful homeowners in foreclosure or with strangers living in their second home.
How Does Home Title Fraud Work?
At its heart, home title fraud is an offshoot of identity theft. First, criminals decide who to target. Recently deceased homeowners can be targets, as their homes can be vacant. Elderly homeowners who might miss red flags, homeowners with second homes that often stand vacant, and longtime homeowners with substantial home equity are other likely victims.7
Once the criminal has the sensitive information, they can use it to fraudulently transfer a home title over to themselves or a fake identity they control. The rise of electronic methods to manage documentation, such as home titles, has helped enable this scam.1
Home title fraud was a fraction of the 11,700 real estate fraud claims in 2022. Among 230 million homeowners, the odds of falling victim are remote.
If the home is vacant, the fraudster may sell or rent the property. If the homeowner is living there, the criminal may take out loans against the home’s equity. If the rightful owner isn’t closely monitoring their finances and credit, they may not realize what has happened until they receive a foreclosure notice.
Is Home Title Fraud Risk Overblown?
Homeowners who see commercials for home title fraud protection services calling it “one of the fastest-growing’ crimes in America,” may feel alarmed.9 However, it’s important to correctly assess your level of risk before committing money to such services. With home title fraud a fraction of the 11,700 real estate fraud claims in 2022 among 230 million U.S. homeowners, the odds of falling victim are extremely remote.10
Although there are ads and commercials perpetuating the risk at an alarming scale, they appear to be nothing more than a scare tactic, according to experts.9
“Our members, they’re not seeing it nationwide,” an American Land Title Association (ALTA) lawyer told ABC News for a story in June of 2022.
In addition to checking with your local government’s register of deeds to find out about monitoring services, homeowners can protect themselves from home title fraud using some familiar identity protection best practices: 16
File a police report at your local department (including your documented FTC claim).
Place a fraud alert with the three big credit bureaus — TransUnion,20Experian,21 or Equifax.22 This will ensure that the credit bureaus take extra precautions before responding to a request for your credit report.
Review your credit report with all three big credit bureaus regularly. You can pull them for free (as frequently as once a week) at AnnualCreditReport.com.23
Change your log-ins for all financial accounts and review for suspicious activity.
It’s always unsettling to learn about a form of fraud you didn’t know about before. But homeowners should put home title fraud into perspective: it’s incredibly rare, and if you’ve been actively protecting yourself from identity fraud, you’re already taking most of the right steps.
Turning Fiction into Fact: The Truth Behind Home Title Theft
Over the last several years there has been growing research and publicity regarding home title, or deed, theft. While the crime itself is very real and very scary, the accuracy of the press has left consumers uncertain of the legitimacy and to what extent they are at risk. So, what is the truth? Are fraudsters across the nation trying to steal your home? Is it possible for someone to steal your home while you are still living in it? Is there any way to actually prevent this crime from occurring to you? In order to truly understand home title theft, one must first determine how it happens and, more importantly, who is at risk.
What Is Home Title Theft?
Home title theft is the process of changing the legal ownership of a property, without the legitimate owner’s consent or knowledge, with the intent of selling or refinancing the property for monetary gain. This is typically completed by submitting a grant deed to the county record’s office that reflects a falsified ownership change or sale. The grant deed is a legal document or mechanism that transfers real estate ownership from a seller to a buyer. Sadly, with the advancements in technology, it has become easier for criminals to falsify these documents. With only a few key strokes, thieves around the nation can have documents accepted in any recorder’s office, and with the growing enhancements in artificial intelligence (AI), this process is becoming streamlined.
How Is This Possible?
The United States County Recorder a vital organization that compiles millions of documents daily. A county recorder’s job entails keeping public records of actions and transactions that are required by local, state, regional, and national governments. As noted by the California Department of Real Estate, “the county recorder is not responsible for verifying the validity, authenticity or legitimacy of the document that is recorded. In other words, the recorder is not responsible for detecting a fraudulent document, and the recorder does not look beyond the document itself. If the document meets the essential records requirements, and the proper fees are submitted, the county recorder is obligated to and will record the document.” This fact, or flaw some might say, is how and why home title theft is able to occur.
Furthermore, seller impersonation has risen drastically in recent years. In early 2024, The American Land and Title Association (ALTA) issued a warning that “sophisticated fraudsters are using the real property owner’s Social Security and driver’s license numbers in the transaction, as well as legitimate notary credentials, which may be applied without the notary’s knowledge.” The creativity the fraudsters are now using seems to be ever increasing and with the advancement of AI, where will it stop?
Now That the Document is Recorded, What Happens Next?
Once a criminal has control of a home’s title, unfortunately anything is possible. Throughout the nation there have been countless homeowners who have found their properties sold without their knowledge. Here are a few recent examples:
While these stories may seem few and far between, the truth is home title theft is happening every day and is on the rise with the recent advancements in technology. Possibly the most notable occurrence was the attempt to foreclose Elvis’ Graceland home in 2024 in which criminals claimed the Late Lisa Marie obtained a $3.8 million loan and failed to pay it back.
Unfortunately, these horrifically noteworthy occurrences often do not receive their deserved press due to underreporting, not because of lack of care, but simply because of a lack of knowledge. There are thousands of owned lots of land that are never visited and are targets for scammers. The FBI released an article touching on this very topic. Many raw landowners only become aware of the fraud after failing to receive their tax bill for the property, sometimes missing the bill for several years before realizing the issue. This devastating crime can result in an even more devastating amount of money and time needed to correct the fraud filled with daunting legal fees.
Who Is At Risk?
The risk for home title theft can be viewed on a sliding scale. The properties with the most risk are raw land properties owned outright, followed by investment properties owned outright. The properties with the lowest risk are homes and raw land plots with a high balance mortgage in relation to the property value. Simply put, properties lacking equity are not at risk of this financial crime and frankly have no reason to be concerned.
Statistically speaking, 55% of the population is at risk for home title theft. Properties with a lack of mortgage or substantial equity have an elevated risk associated with owner impersonation which can result in attempts to falsely sell or refinance the property. Properties at moderate risk are those with a loan between 20-50% of property value.
What Can I Do?
The are many so-called options for at risk property owners. Historically, the most common recommendation has been to subscribe to a notification service. The premise behind a notification system is exactly as it sounds: it offers the property owner knowledge of a change in title, but only after it has been recorded. The notification of change does not actually stop the financial crime from occurring; it simply notifies the rightful owner they need to take swift legal action. The homeowner continues to be at risk until they are able to regain their title through the legal system. Unfortunately, with a drawn-out legal processes and as criminals often have a sale or loan already in process, it is truly a race against the clock. While notification and monitoring systems may be beneficial for low-risk properties, these companies do absolutely nothing to prevent the financial crime of moderate to high-risk properties. So, what is the answer? How do home and landowners prevent home title theft?
Title Theft and Unsolicited Real Estate, Brokerage, and Mortgage Solicitations
Title Theft
Title theft occurs when a criminal impersonates a property owner and sells or takes out a second mortgage on the owner’s property. In the worst-case scenario, the home goes into foreclosure and/or is deeded to a new purchaser. It is a complicated and expensive process to rectify, if it can be rectified at all. HB 1292 is legislation signed by Governor Kemp to create greater safeguards. This law creates a process, effective January 1, 2025, to validate a person’s identity when he or she files a title deed and other real estate and personal property records.
Unsolicited Real Estate Solicitations
This law also addresses predatory and unsolicited real estate purchase offers that often target older adults. As of May 2, 2024, solicitations of this nature must state that the monetary offer may not be the fair market value of the property. A solicitation that includes a monetary offer is also required to include the following text in capital letters: “THIS OFFER MAY OR MAY NOT BE THE FAIR MARKET VALUE OF THE PROPERTY.” Furthermore, if the monetary offer is less than the value of the previous year’s assessed value for ad valorem taxation by the county tax assessor for the county in which the property is located, the following text is required in capital letters: “THIS OFFER IS LESS THAN THE COUNTY ASSESSED VALUE FOR THIS PROPERTY.”
The bill also creates a private right of action for those individuals who believe they were deceived.
Unsolicited Mortgage Solicitations
HB 240 by Rep. Noel Williamson, which became effective on May 13, 2025, aims to reduce the influx of confusing and unwanted mortgage solicitations sent to consumers after they apply for a mortgage. While it is still legal for credit reporting agencies to sell consumers’ information to other lenders, this law aims to prevent the misuse of that information by forbidding certain unfair or deceptive practices, including:
Prohibiting Misleading Solicitations. Mortgage lenders and brokers are prohibited from failing to disclose in initial solicitations that they are not affiliated with the lender with whom the consumer initially applied.
Requiring Compliance with Prescreened Solicitation Laws. Solicitations must conform to applicable laws relating to prescreened offers using consumer reports.
Respecting Consumer Preferences. The use of information from consumers who have opted out of prescreened offers of credit or who are on the federal do-not-call registry is prohibited.
Banning Bait-and-Switch Tactics. Soliciting consumers with offers of certain rates, terms, and costs, while knowing that those rates, terms, and costs would subsequently change to the consumer’s detriment, is prohibited.
Unsolicited Brokerage Solicitations
SB 90is another piece of legislation that addresses real estate and went into effect on January 1, 2024. This law deals with brokerage engagement solicitations. Georgia law imposes strict requirements on unsolicited agreements that inquire into consumers’ interests in selling their land or real property. Such agreements are required to make clear to consumers that the inquiry is a solicitation, that the proposed agreements are not legally binding, and that consumers have no obligation to do anything upon receiving these inquiries, including responding to or even opening the solicitations. This exact language can be found in SB 90, or O.C.G.A. § 10-1-393.18.
Any unsolicited solicitation shall contain the following:
At the top of and at least two inches apart from any other text on such written inquiry or mailing, the following notice in capital letters:“THIS IS A SOLICITATION. THE SENDER IS CONTACTING YOU TO INQUIRE AS TO YOUR INTEREST IN SELLING YOUR HOME OR OTHER REAL ESTATE. YOU ARE UNDER NO OBLIGATION TO RESPOND.”
On front of the envelope or, if there is no envelope, on the part of the written inquiry or mailing that bears the postage stamp or postage amount, the following notice in capital letters:“SOLICITATION. YOU ARE UNDER NO OBLIGATION TO OPEN OR TO RESPOND.”
If you believe that you’ve received a solicitation that failed to meet the requirements explained above, or contained any misleading or false representations, please contact our office at (404) 651-8600 or by filing an online complaint.
This office will also be monitoring this area and will take appropriate enforcement action.
Tips
To help property owners stay apprised of any unauthorized changes to their deed, they can sign up to receive notifications of certain changes in filing status through the Filing Activity Notification System (FANS) at https://fans.gsccca.org/. Many local County Clerks offer this service as well.
Another step you can take to protect yourself from these scams, while not foolproof, is to place a Google alert for your property address. That way if someone places an online ad or listing that references your property, you should get an email alert.
Do You Own Property? Protect Yourself From Seller Impersonation Fraud
When you own a house, you think it’s yours. Full stop. That’s why it was so shocking when a couple in Tampa, Florida, Dreama and Larry Bilby, discovered that a pair of scammers had filed a deed that transferred ownership of their home. It was a quitclaim deed, which is typically used for transferring properties without a sale, such as from a parent to a child. But in this case, criminals exploited it to steal from the unsuspecting couple. It was made easier because the Bilbys lived elsewhere while their house was being renovated.
The good news: the Bilbys had a camera on the property and saw the scammers, which helped with their eventual arrest and 15-year prison sentence.
Real estate fraud expert Tom Cronkright says scams like this one — which take the form of home title theft, title fraud and seller impersonation — are increasingly common and often successful. It’s not always through a quickclaim deed, however: Sometimes a scammer will impersonate the owner, hire a real estate agent to list and sell the property, and then the scammer walks away with the sale proceeds after the closing.
“Title theft is … the perfect real estate crime,” says Cronkright, cofounder and executive chair of CertifID, a wire fraud prevention firm, and Sun Title, a residential and commercial title company in Grand Rapids, Michigan. Unlike other forms of identity theft that require access to victims’ online accounts, Cronkright notes, “everything that the [criminal] would need to [perpetrate title theft] is publicly available.”
The crime, which is not commonly reported (scams are notoriously underreported), can be a mess to untangle if you are targeted. You’re particularly at risk if you own an unoccupied property, including undeveloped land or a vacation home.
How seller impersonation fraud works
“Fraud and theft are, unfortunately, pretty common crimes. And what we’ve been seeing over the last couple of years is an uptick in seller impersonation fraud where an individual will … essentially create a persona that they are the owner of a property,” says Deanne Rymarowicz, senior counsel at the National Association of Realtors. “They will dupe a real estate professional into listing the property and, in some instances, successfully sell the property to an unsuspecting buyer even though they’re not the actual, legitimate owner of the property.”
Impersonating property owners is easy with public records and personally identifiable information acquired from hackers. “All the scammer has to do is look up who the owner is,” Cronkright says. “They run a simple search of the property tax records to identify the owner and see where the tax bill is being sent, and then they can create identity documents to impersonate the real owner with information purchased from paid sources or through the dark web. Those documents — a passport or some sort of state-issued ID — typically have a money mule’s picture on them, but with information about the real property owner.”
Cronkright adds that “over the past year, the quality of these documents has increased, making it harder to identify a fake ID from a legitimate one.”
Criminals can use those documents and a forged deed to hire a real estate agent and eventually present those documents at closing to complete a sale. Sometimes they’ll even impersonate a notary and control the entire closing process.
“They’ll find a commissioned notary in the state. They’ll create a stamp that looks legitimate. They’ll receive the documents from the title company by email or overnight package. They’ll sign and notarize. It goes back to the title company or closing attorney. The documents get recorded and reviewed. And then the scammer receives a wire transfer for their net proceeds,” Cronkright explains.
A quitclaim deed, used in the Bilbys case, makes filing a fraudulent claim on a property even easier.
Both owners and buyers are victims
To succeed, scammers committing title fraud must be able to fly under the radar and go unnoticed by properties’ legitimate owners. Some properties are therefore more vulnerable than others.
“Vacant land, second homes and rental properties are often targets because there is a lower likelihood that an owner will discover the fraudulent sale before it happens,” explains Sarah Frano, vice president and real estate fraud risk expert at First American Title Insurance Company.
Because scammers are interested in money, not land, properties with no mortgages or high equity are particularly attractive targets, adds Frano, who says victims include real estate owners, buyers and lenders — particularly those without title insurance, which in many cases offers protection against home title fraud.
The good news about home title fraud is that it remains relatively rare despite an apparent uptick in cases, says Stewart Sterk, a professor of real estate law at Yeshiva University’s Benjamin N. Cardozo School of Law, where he also is director of the Center for Real Estate Law & Policy. “For the most part, you shouldn’t worry about it too much,” Sterk says.
If you are victimized
If you become a victim of home title theft, the law is on your side. “Title theft is a bit of a misnomer,” Frano says. “Legally, a forged deed is invalid and the true owner only superficially appears to have lost title.”
Still, the risks and headaches associated with home title fraud are real. Buyers are protected if they have title insurance — as most do — but if they’ve made a cash transaction with no mortgage and don’t have title insurance, that money may be irretrievable.
Victimized property owners will need to prove ownership and that the transaction was fraudulent, which probably means hiring a lawyer and potentially going to court. That costs money, unless you have title insurance that covers post-purchase fraud.
Bottom line: In a world with increasingly rampant fraud, it pays to protect yourself — just in case.
How to protect yourself from title fraud
If you’re a property owner:
Set up a Google Alert with your property address. “If the fraudster lists the property for sale, an alert may help you stop a sale before it happens,” Frano says.
Consult county records if you’ve missed an expected tax bill or assessment. “While silent, this is often the first alarm bell that [criminals] have transferred the title,” Frano notes.
Check on vacant land and unoccupied properties. Mysterious construction, unauthorized occupants and unsanctioned “for sale” signs can be visual evidence of potential fraud. If you own vacant land, an unoccupied home or a rental property, you should therefore make regular visits to inspect it, Rymarowicz suggests. “If you’re out of state or not in the same town, have someone watch out for the property,” she says. “Ask the neighbors to keep an eye out.”
Check your title insurance policy for post-event coverage. Although most purchasers opt in to title insurance when they buy property, “not all title insurance policies cover fraud after you purchase your property,” Frano says. “This is especially true if you purchased your property before 1998,” she explains, noting that most title insurance policies issued after 1998 include enhanced coverage for forgery and fraud that occur post-purchase. “This enhanced coverage provides owners additional protection should a fraudster try to sell or put a mortgage on your property while you own it. If you purchased your home before 1998 or your policy does not have the enhanced coverage, contact your title insurance underwriter to inquire if the enhanced coverage is available as an upgrade to your existing policy.”
Sign up for alerts from your state or county. Many states have free services to alert owners when their property is the subject of a filing or their name appears in a filing (this map highlights the states that do so). You also can check with the county recorder’s office or the office that records the deed in your area to see if they have a notification system, Rymarowicz says: “Sometimes the property owner can file a notification that says, ‘Hey, if there’s anything recorded on my property, you need to tell me about it.’ That would generate a notice to the property owner … and alert them much earlier and faster to potential fraud.”
Ask a real estate attorney about preventive measures. “You might want to seek counsel to ask, ‘Is there something I could record on my property that would prevent fraud or at least slow it down?’ Laws vary state by state, and there’s no clear consensus as to what could practically be done, but maybe there’s some affidavit of interest or something that you could attach to your file that would require a third party to find you to obtain a signature to release that interest,” Cronkright says. “That could do two things. One, it could alert the title company or the closing attorney that an interest needs to be cleared. Two, it could be a deterrent. If criminals are looking at 10 parcels in a certain county and nine of them are free and clear, but this other one has some interest on it, they might simply skip that one.”
If you’re purchasing property:
Buy title insurance. If you have a mortgage, most lenders will require you to have title insurance. If you’re a cash buyer, however, you might need to go out of your way to get it. “Select a title insurance policy with fraud coverage,” advises Frano, who stresses the importance of a policy covering forgery and impersonation fraud that occurs both before and after you close on your property. (But, as noted above, don’t buy “title lock insurance.”)
Be skeptical of bargains and rushed closings. “One of the hallmarks of fraudulent sales is a price well below the market price. So, if you’re getting the deal of the century, that could be a red flag, in which case you may want to look a little bit closer at the seller to make sure they’re legitimate,” says Rymarowicz, who cites quick closings as another potential red flag.
Be cautious if a property is listed as for sale by owner. Criminals are likely to avoid “the additional scrutiny” that a real estate agent would bring, points out Frano. She adds that you therefore should “be suspicious of a seller who pressures you to avoid involving an attorney or title company in the transaction.”
Beware remote notarization. “Remote notarization is completely legal and legitimate, but there are bad actors,” explains Rymarowicz, who says fraudulent sellers will insist on remote closings due to location, illness or other circumstances. In that case, she notes, the buyer or title agency could consent — but should insist on choosing the remote notary to ensure that the notary is legitimate.
Verify the seller. While it’s not unusual for buyers and sellers not to meet in person before closing, your real estate agent, attorney and/or title company should be able to verify that the seller is authentic. Your agent should also confirm that they met the seller at the property and verified their identity and ownership by asking them to bring the most recent tax bill, a certificate of insurance showing the property’s address or the closing statement from the property’s original purchase. Criminals like to hide behind email and texts, Frano says. “Be cautious of a seller who never makes a personal appearance or makes excuses why they can’t talk on the phone.”
Report home title theft
If you think you’ve been a victim of home title theft or another type of real estate fraud, contact your local law enforcement agency and your county recorder’s office, consult a real estate attorney and report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Why aren’t Title companies protecting the homeowner?
Title companies aren’t protecting homeowners from title theft because they often don’t offer protection against future fraud unless the homeowner purchases a separate owner’s title insurance policy. A homeowner’s policy is typically a one-time purchase made at closing, and it covers issues like fraudulent claims and forged deeds that arise after the purchase. Many homeowners mistakenly assume the required lender’s title policy also covers them, but it only protects the lender’s interest, not the owner’s equity.
Why the misconception exists
Lender’s vs. Owner’s Policy: The lender’s title insurance is mandatory when you have a mortgage, but it only protects the lender’s investment, which decreases as you pay down the loan. It does not cover the homeowner’s equity.
Limited Scope of “Title Insurance”: Many people believe that “title insurance” covers all potential title problems, but it typically only protects against defects that existed before the policy was purchased, such as old liens or boundary disputes.
How to get protection
Purchase Owner’s Title Insurance: The best way to protect yourself from future fraud is to purchase an owner’s title insurance policy at closing.
Request a Fraud Endorsement: Some policies may include a “fraud endorsement” that provides specific protection against fraudulent claims.
Take proactive steps:
Place your property in a trust or LLC.
Sign up for free property fraud alerts through your local county government, if available.
Regularly check your property’s title status.
The government’s role in protecting homeowners from title theft is primarily through law enforcement and public awareness, as no single federal law directly prevents all title theft. Agencies like the FBI investigate and combat title fraud, with the Internet Crime Complaint Center (IC3) serving as a reporting hub for victims. Local governments can also assist by offering free property fraud alerts that notify homeowners of any changes to their property records.
Government actions and resources
FBI investigations: The FBI works with partners to investigate and stop title fraud, which can include recovering funds within the first 72 hours of a report.
Local government alerts: Some counties and local governments offer free property fraud alert systems that will email or call you when a document related to your property is filed.
How homeowners can protect themselves
Monitor property records: Regularly check your property’s online records and set up alerts through your county clerk’s office.
Obtain title insurance: Ensure your title insurance policy includes coverage for fraud, forgery, and impersonation.
Secure your identity: Take steps to protect your personal information to prevent criminals from impersonating you.
Be vigilant: Be wary of suspicious communications and have neighbors keep an eye on the property if it is vacant.
Is Title Theft Insurance a Scam?
Have you heard about title theft? This is a type of identity theft in which a scammer forges documents or impersonates you so they can transfer the deed to your property under their name. Once they have possession of your deed, they can take out loans against the property or even try to sell it for a profit. An FBI report published in 2022 stated that nearly 12,000 individuals had been affected and that they had lost a combined $350 million due to title theft.
We know title theft sounds bad, and it is. You may be concerned and wondering what you can do to protect yourself. A number of companies have come forward to offer comfort and safety in the form of “Title Theft Insurance.” This insurance can cost $100 or more annually and claims to notify you about any activity related to your deed and prevent unauthorized title transfers. Is this insurance worth the cost? Does it provide the protection it claims to provide? Is it just another type of scam?
Read on to learn the real deal about title theft insurance from the real estate experts at World Wide Land Transfer.
Do You Need Title Theft Insurance?
Although title theft is a genuine issue that you should be concerned about, title theft insurance is not really necessary. When title theft happens, the deed is considered forged and invalid. If a scammer tries to transfer your title to themselves or sell the property to a third party, the sale or transfer will never be considered legally valid. You may need to pay some attorney and court fees, but the risk of losing your house is basically zero. The scammer is unlikely to show up in court to defend their fraudulent ownership rights; they will probably just move on to an easier target. In addition, any buyer or lender who is involved in a fraudulent transaction involving a forged deed will be legally responsible for any financial losses, not you as the rightful homeowner.
You should also know that multiple safeguards are already in place to prevent title theft. Credit reports, income tax return verification, and photo identification requirements can all stop a scammer in their tracks before a title is ever transferred. In some cities like Philadelphia, where title theft is running rampant, they have even created title theft task forces to investigate additional safeguards that can be put in place. Title insurance companies like World Wide Land Transfer also play a crucial role in preventing title theft. Any lender will conduct a title search before lending money for a real estate transaction, and an experienced title agent will easily be able to identify an attempted title theft.
If, by some unlikely set of circumstances, a scammer manages to bypass all those safeguards, an enhanced owner’s title insurance policy will protect you against fraud and forgery, paying any legal fees resulting from an attempted title theft. While a standard owner’s title policy provides coverage for fraud and forgery that occurred in the past, an enhanced owner’s title policy can cover you for post-policy forgery and a range of other title defects that aren’t included in a standard policy. The stolen deed crisis, or title theft has been rampant for a while now. It’s a tremendous value, and it only costs 10% more than a standard policy. In fact 5 years ago, Marc Shaw sat down with the PLTA to discuss the stolen deed crisis….. here is the video from then.
Is “Theft of Home Title” a Myth?
There seem to be more and more frequent commercials advertising services to protect homeowners from “home title fraud”. These commercials are not talking about fraudulent applications for mortgages, although that probably happens frequently. Instead, they are talking about someone who forges a deed to themselves and then tries to borrow money against the property or resell the property to a third party. Despite the frantic tone of the commercials, one has to wonder just how common home title theft is.
The FBI reported that in 2017, 9600 people lost a total of $56 million through wire fraud involving real estate. However, that is an extremely broad category and the FBI has not published statistics so far that delineate how much of this is “home title fraud”. In my experience, in Texas it is not very common. I looked for statistics regarding this kind of fraud nationally but numbers just aren’t available.
There are a number of things to know about this kind of fraud. First, in Texas, keep in mind that this kind of fraud is enabled if an unsuspecting buyer purchases property from someone without going through a title company. The title company closing process includes protections designed to prevent this kind of fraud.
Secondly, please be aware that a forged deed is absolutely void and conveys nothing. However, if the forged deed has been filed in the deed records, it can create a cloud on the title to your home. There are several things you can do in this event. Contact a real estate lawyer about preparing and filing an affidavit of forgery that will be filed in the deed records to counteract the forged deed. If a legitimate future lender or future purchaser finds that unacceptable, it is possible that you may need to file suit against the forger to have the forged deed declared invalid and then that judgment is filed in the deed records. It doesn’t matter if you can no longer find the forger, (and in most cases they are long gone) because the forger can be served by publication and your attorney can file a motion for summary judgment to obtain a declaratory judgment against the forger. Because there’s no defendant fighting the case, the attorney’s fees for such a proceeding are usually quite modest. Note: none of the “protection services” I researched cover attorney’s fees.
As far as preventing a forged deed before it happens, the advertisements for these title protection services make claims that are unsubstantiated and, in many cases, are actually false. For example, some advertisements claim that the monitoring service puts a “shield” around your home title. This is not a true statement. All that the “protection service” does is check the deed records periodically to see if any instruments have been filed in the deed records with your name on it and then let you know if that happens. However, what they don’t tell you is that many counties in Texas will let you sign up for a “fraud alert”. In other words, if something is filed in the deed records with your name on it, the county clerk will send you an email alerting you to this. In most cases, the service is free. Some counties charge a very nominal fee. Here is an example of this service in Tarrant County.
These “protection services” claim that the true owner will be liable for the fraudulent mortgage payments. Not true. You are not liable for a fraudulently obtained mortgage in your name.
Additional preventive measures that you can take and cost you nothing are:
Lock your credit account at each of the three major credit reporting agencies.
Periodically check the deed records in the county where your home is located yourself using an online deed records search service. The search is free and there is a small charge if you order copies of anything you find.
Be sure you get the notice of appraised value for your property from the county appraisal office each May and your tax invoice for property taxes from the county tax assessor each November. If you don’t, call them and find out why.
If you fail to receive any of your utility bills, contact the utility provider promptly.
If you get some kind of payment book or correspondence from a mortgage company that you don’t recognize, contact that company and find out what’s going on.
Get a copy of your credit report periodically and make sure everything on it is accurate.
For vacation or rental property, make sure you’re still getting utility and tax bills and rent payments and if the property is vacant, check on it in person periodically to make sure unauthorized persons aren’t living there.
When you purchase property, always go through a licensed title company to make sure the title to the property you are purchasing hasn’t been subjected to a previous fraudulent transfer.
While it’s hard to tell just how frequently title fraud occurs, it is not an occasion for the hysteria that is generated by the advertisements of these “protection services”. By taking the steps outlined above, you can eliminate most, if not all, concerns yourself.
What does a Title Company Do?
A title company is a company that helps ensure a real estate transaction has a clear legal title by performing title searches, providing title insurance, and managing escrow and closing services. It acts as a neutral third party to verify property ownership, protect against potential defects, and handle the transfer of funds.
Services provided by a title company
Title search: They conduct a thorough search of public records to uncover any liens, easements, unpaid taxes, or other encumbrances that could affect the property’s title.
Title insurance: They issue a title insurance policy to protect the new owner and their lender against future claims or legal fees related to past title defects.
Escrow services: They act as a neutral third party, holding funds from the buyer and their lender in an escrow account until all conditions of the sale are met.
Closing services: They oversee the closing process by coordinating signatures on all necessary documents, verifying they are properly signed and notarized, and ensuring the new deed is filed with the county.
Fund management: They handle the distribution of funds, paying off any existing liens on the property and disbursing the remaining money to the seller and other parties involved.
Property survey: Some title companies order a property survey to verify property boundaries and identify any encroachments, such as a neighbor’s fence being on the property line.
Title insurance protects homeowners from fraud, but the extent of this protection depends on the specific policy. While traditional owner’s title insurance covers fraudulent acts that occurred before you bought the property (like a forged deed from a previous owner), some policies now offer additional protection against title theft that occurs after you own the home. A title insurance company will cover legal costs, investigation fees, and financial losses if you are a victim of a covered fraudulent claim.
How title insurance protects against fraud
Covers pre-existing fraud: Your owner’s policy protects against fraud, forgery, and impersonation that may have happened before you purchased the home.
Covers legal expenses: If a title defect or fraudulent claim is discovered, the title company will often cover the legal fees to defend your title.
Covers financial losses: The policy will help cover financial losses, such as paying off unauthorized debts or liens, and can include costs to regain full ownership.
Some modern policies add post-purchase protection: Some newer title insurance policies, like the First American Eagle Policy, specifically protect against title fraud that occurs after you own the home.
What to do to protect yourself
Purchase owner’s title insurance: This is the most important step for financial protection against title fraud.
Read your policy carefully: Understand what your specific policy covers, especially regarding post-purchase fraud.
Take preventative measures: Monitor your credit reports, protect your personal data, and watch for any unusual mail or activity related to your property.
Verify all correspondence: Be wary of any unsolicited or unfamiliar paperwork regarding your property or mortgage.
Check with your local county deed office: Periodically check for any activity related to your property.
Contact professionals: If you suspect a deed has been compromised, contact a legal professional or your title insurance company to understand your options for a quiet title action.
Conclusion
First of all, if a company is being paid to hold your title, they should protect it —end of story. I also think that anyone found guilty of stealing a title should receive the death penalty. I know this sounds harsh, but think of what it does. First of all, these criminals go after people who have their house paid for. Who has their house paid for? The elderly. In most cases, they have worked all of their lives to accomplish this feat. When someone steals their title, they have basically ruined that person’s life. In the West, anyone found guilty of stealing a person’s horse was hanged. This was because by stealing a horse, they sentenced that person to a lingering death. Until crimes have appropriate sentences attached to them, they will never stop. I also believe that anyone found guilty of 1st degree murder should receive the death penalty. Of course, it needs to be without a shadow of doubt. I also think the government should have a department responsible for monitoring home title fraud. It could be a department in the FBI.
Resources
-forbes.com, “The Home Title Theft Baloney.” By Larry Light;
-chase.com, “Home title theft: What is it and how to protect yourself.”;
-synovus.com, “Should You Fear Home Title Fraud? What Homeowners Need to Know.”;
-amacus, “Turning Fiction into Fact: The Truth Behind Home Title Theft.”;
-consumer.georgia.gov, “Title Theft and Unsolicited Real Estate, Brokerage, and Mortgage Solicitations.”;
-aarp.org, “Do You Own Property? Protect Yourself From Seller Impersonation Fraud.” By Matt Alderton;
-worldwidelandtransfer.com, “Is Title Theft Insurance a Scam?” By admin;
-texasoilandgasattorneyblog.com, “Is “Theft of Home Title” a Myth?” By Aimee Hess;
