Title Fraud when paying off a home mortgage

G

GoodEnuff

Senior Member
Have been reading about Title Fraud, where a fraudster sells a property that doesn't belong to them and the legal owner of the property is the loser. This doesn't make sense to me but that is what I am hearing. It is also being said that usually this is done with paid-off properties, one with no mortgage. Apparently, involving the mortgage company complicates things.

Many counties in the US have established a notification system whereby you will receive an email if there is any activity on your property title. There are also insurance policies one can purchase. However, all of these notifications occur AFTER the fact.

I have a small-ish mortgage and have been hitting it hard with additional principle payments; it will be paid off in 2 years if I continue doing that. Now I wonder if that is a good idea?

What are your thoughts?
 

Apparently, this involves identity theft and forging documents, i.e., quit claim deeds.

Having bought and sold homes twice in the past few years, what is concerning is the ability to e-sign documents. I have done this, didn't even have to show up in person at the title company closing.

I discussed this with the county clerk and yes, perhaps it is fear-mongering? It is, however, happening.
 
Mortgage fraud is a big deal in Tennessee. The most high profile case was Graceland, Elvis Presley’s property. And the people committing the mortgage fraud almost got away with it.

I have seen awareness tv commercials about mortgage fraud.

”
Yes, mortgage and real estate fraud are significant and growing problems in Tennessee
, with scammers using sophisticated methods like forged documents, AI, and identity theft to illegally claim property or obtain loans, leading to major financial losses for residents, as highlighted by high-profile cases like the Graceland incident and ongoing concerns from officials.
Types of Fraud in Tennessee
  • Title Fraud: Forging deeds to illegally transfer property ownership, sometimes even impersonating owners at closings.
  • Mortgage Assistance Scams: Individuals posing as consultants promising to stop foreclosures but demanding upfront fees, violating state law.
  • Identity Theft: Using stolen personal information to secure mortgages for homes the fraudsters don't own.
  • High-Tech Schemes: Utilizing AI to create fake identities for virtual closings and forging notary seals.
Key Examples & Concerns
  • Graceland Case (2024): A phony firm attempted to auction Graceland using forged documents, showing how even large properties are targeted.
  • Rising Concerns: Tennessee officials and real estate professionals confirm fraud is increasing, targeting average citizens, not just celebrities. “
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I have a very small mortgage on my home and I plan to keep it there. The people at the bank I do business with, also the mortgage would be alerted if somebody tried to pull this place out from under me.

people who think mortgage fraud is a ruse —— don’t be so naïve ——— if somebody can think of it, it can happen.

That doesn’t mean you need to subscribe to chicken little the sky is falling on you, it just means you have to be aware in the same manner of that you’re aware the same as pumping your gas or walking from the grocery store to your.
 
I would pay it off and make sure that the mortgage company or bank recorded the mortgage discharge.

I would also sign up for any sort of alert service that your county clerk offers but I would not pay for any sort of service or insurance.

If anything ever does happen it would be a nightmare but I believe that it would eventually be resolved in your favor.

My reasons are simply that I prefer cleaning up these odds and ends even if they do not always make financial sense.

Approx. 40% of the homes in the United States have no mortgage and IMO the odds of something happening are very, very, slim.

Do what makes you comfortable and gives you peace of mind.
 
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Some counties have a system where you will be informed by email when anything happens to your home’s title. If so, sign up for it.

Other than the above, paying off the mortgage is a simple math problem. What is the interest rate. If it is higher than what you can get in a secure interest bearing vehicle (treasuries, CDs, etc.) pay it off. If you do pay it off, keep some emergency money liquid so you won’t have to go back into debt if a sudden expense pops up.

If you have one of those 3% or lower loans, don’t pay it off. Invest the money instead in CDs or treasuries that are earning over 3%. If you do pay off a loan below 3% insist that the bankers sent a stretch limo to pick you up and take you to the bank for the payoff. Then the limo should take you and a friend out for a fancy lunch or dinner at the bank’s expense. Finally, the banker should wash and kiss your feet.
 
I have been paying additional principle since Day One of this mortgage. At this rate, I will have paid off a 30 year, 6.625% fixed rate mortgage in 4.5 years. That's with a credit score of over 800. Sheesh.

The worrying part of this title fraud is that the legal owner is forced to hire attorneys and go through h3ll to get it back. People have been threatened (at least) with eviction from their paid off homes. If this happened with a vehicle, the buyer would be the loser, not the legal owner.

We need new regulations in regard to real property title transfers.
 
GoodEnuff said:
I have been paying additional principle since Day One of this mortgage. At this rate, I will have paid off a 30 year, 6.625% fixed rate mortgage in 4.5 years.
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Years ago when houses were cheaper, I took out a 30 year mortgage construction load. I built the house myself, and bought materials only when I needed them. After three years the house was nearly complete, with just odds and ends to finish, and I could buy those materials with my salary. There was $300 still left in the account, so the bank just moved the remaining amount into the principle. Suddenly, I had a 15 year mortgage instead of a 30 year mortgage.

That can only happen when you apply additional payments at the beginning of the mortgage. If you wait until you've paid for 25 years, you will gain on the principle of course, but gain hardly anything on time.

It's interesting to look at charts that show the amount of payment that goes to the principle over the course of the loan. It's mind boggling to see how little goes to the principle at the beginning. It's kind of scary actually.
 

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