Deed Theft - a new scam

debodun

debodun

SF VIP
Location
way upstate in New York, USA
Deed theft, also known as home title fraud or deed fraud, is a scam where criminals illegally transfer a property's title into their own name by forging signatures on documents like deeds or mortgages. They then steal the home's equity by selling it or taking out loans against it. This crime often targets vacant properties, rental homes, or elderly homeowners, and while uncommon, it can have devastating consequences for victims.

How Deed Theft Works

  1. Target Identification: Scammers identify properties to steal, often vacant land, vacation homes, or houses owned by vulnerable individuals like the elderly or incapacitated.
  2. Identity Theft: The criminals use personal information, sometimes found online, to impersonate the true owner or create a fake identity to represent the owner.
  3. Forgery & Fraud: They forge the owner's signature on a deed or mortgage to transfer the property's title.
  4. Illegal Transfer: The forged deed is then filed with the county recorder's office, illegally transferring ownership to the scammer or a third party.
  5. Monetization: The fraudster can then sell the property, secure a fraudulent loan using the home as collateral, or collect rental income.
Protecting Yourself from Deed Theft

Property Fraud Alerts: Sign up for free property fraud alert services offered by your county clerk's office to get email notifications when a document mentioning your property is recorded.

Secure Personal Information: Be cautious about sharing personal information online, as fraudsters can use it to impersonate you.

Regularly Monitor Your Property: Periodically check for unusual activity, such as new deeds or mortgages, related to your property.

Report Suspicious Activity: If you suspect deed theft, report it to the FBI's Internet Crime Complaint Center (IC3) at www.ic3.gov.

Be wary of "Too Good to Be True" offers: Be skeptical of unsolicited real estate offers, especially those involving vacant lots or requiring quick, all-cash sales, as this can be a red flag for vacant land fraud.
 

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Thank you to both @debodun and @Aunt Bea for posting this. I urge everyone to follow @Aunt Bea's direction and memorize @debodun's post.
I have been a victim of this. (a rental property I inherited) If you think it is criminal activity and the offender will get his/hers, think again.
It is costly to hire an attorney, my case has been in court a few years now, and is getting close to ending, but it has been there before and then went back a few steps. It appears to me that the justice system, many times, sides with the offenders.
I can't say more about this, it is still an active case.
 
They have been running ads about this the last several months in my area.

I am so sick to death of people trying to scam other people out of what they worked their entire life for.

I could really get on my soapbox about this, but it’s a moot point on this forum because everybody on here is the same as preaching to the choir. we are all pretty much aware and pay attention.

I am thankful to live in a small agricultural county where the bankers and the title department are pretty familiar with everybody —- even today. Not saying something might slip through the cracks, but I still carry a very small lien on this farm — I intend to keep it there and this is one of the reasons why.
 
Muskrat said:
@debodun …title insurance is solely for the purpose of insuring that the title search contained no errors. If there was a mistake on the deed the title insurance would cover the harm accrued because of that mistake to the degree the policy states. Nothing else.
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It seems every property owner needs to have a lawyer on retainer.....sickening.
 
Seeing the TV advertisements for some service to protect against title theft made me reflect and evaluate my anti-scam measures. I have my credit profile on freeze, nobody takes a peek unless I manually un-freeze it. Also, I had filed a request with the county tax/recorder's office to suppress/hide my name from public view on the tax rolls. My son, who does judgement enforcement did a thorough check and verified that the measures I'm taking are effective in preventing title theft.
 
I remember watching a documentary on this and, here's my take:

An empty property left by a deceased owner, who had no Will or close relatives, is obviously the most vulnerable and, once a fraudster identifies a likely property, they can falsify Wills and other documents to show themselves as the heir.

These days, most things can be done online which, removes the personal interaction which, at one time, might have made things more difficult and, if the property is valued under the Inheritance Tax threshold, it would not be subject to HMRC checks, making it even more vulnerable.

Having a valid Will is probably the best way to protect your estate after you have passed away.

There is a cost to having a solicitor deal with your estate but, if there are no trusted family or friends to act as executor, it is probably worth having a solicitor draw up your Will, store it in their company safe and, when the time comes, deal with the legalities. Check that all estate expenses will be recouped from the sale of the property.
 
For a quick check you can go to your county auditors website and check by name for transfer history.
Mine shows our address and when we purchased it. The latest and only transfer shows the transfer to me after the husband passed.
If you check by address, it shows the complete transfer history of the property including before you purchased it.
This is my auditor site. YMMV.

I check periodically. Especially after the husband passed since our names and his age were listed in the obits.
From that they could get our address and you never know. Some might think Im some frail little widow. HA! :D

If youre nosy you can also snoop on your neighbors to see if theyve paid their taxes etc. :D

I forgot to add. My auditors site also shows a list of reappraisal dates. If you refinance or take out any loan against the property then the bank will always want a new appraisal. So if you see a reappraisal and its not yours thats a red flag.
 
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Kika said:
Correct! If there is no mortgage, be sure to follow @Aunt Bea I certainly wish I knew about this.
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Okay, thanks. I have a mortgage with Bank of America and will for the rest of my life. Also, my home insuror checks ownership records.

And this information from the Federal Trade Commission is of interest regarding this matter. It has negative information about programs such as "title lock insurance."
 
Aunt Bea said:
The county that I live in offers a free alert service for activity on recorded documents.

https://onondaga.gov/clerk/2023/04/...idents-safe-using-new-propertycheck-software/

It would probably be good to check with the county clerk where you live to see if they offer something similar.

Personally, I believe that the threat is greatest from family members targeting the elderly and vulnerable in their care.
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As it turns out, so does mine.

Thank you for the heads-up and information, @debodun, @Aunt Bea and @Kika.
 
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