Home Title Fraud

What Is Home Title Theft?

Real Estate title theft—also known as title fraud or deed fraud—happens when someone illegally transfers the title of your property into their name without your knowledge. Criminals can use forged documents to make it look like they own your home, and once the fraudulent title is in place, they may try to:

• Sell the property to an unsuspecting buyer,
• Take out home equity loans or lines of credit against your home,
• Use your property as collateral for other debts.

In many cases, the real homeowner has no idea this has happened until they receive a foreclosure notice, collection letter, or find out during a refinance or sale that the title is clouded.

How Does It Happen?

Most title theft involves forged documents filed with the local county recorder’s office. Public records are accessible to anyone, and in many areas, property ownership records can be manipulated with minimal verification.

Thieves typically target:

• Elderly homeowners,
• Owners of second or vacant properties,
• People with paid-off mortgages or considerable equity,
• Deceased individuals whose estates haven’t been settled.

Warning Signs of Home Title Theft

Here are some signs that may indicate your property title has been tampered with:

• You stop receiving property tax bills or notices from your local government.
• You get bills or loan statements for loans you never took out.
• You receive foreclosure warnings for missed payments on a loan you didn’t authorize.
• Your credit report shows new mortgage inquiries or accounts related to your property.
• You’re denied a refinance or home equity loan because the title has unknown liens or ownership issues.
• Your mail is redirected or missing, possibly due to a fraudulent change of address.

What To Do If You’re a Victim

If you suspect or confirm that your home title has been stolen or altered fraudulently, here are the steps to take:

1. Contact your county recorder’s office immediately and request a copy of the title or deed.
2. Report the theft to your local police department and get a case number.
3. Notify your mortgage company or lender.
4. File a report with the FBI’s Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC).
5. Contact a real estate attorney to help challenge the fraudulent deed and restore ownership.
6. Place a fraud alert or credit freeze on your credit report through Equifax, TransUnion, and Experian.

How To Prevent Fraudulent Property Title Transfer

While no system is foolproof, there are several steps you can take to reduce your risk:

• Check your property records regularly at your county recorder’s website or office.
• Sign up for property fraud alerts if your county offers them.
• Consider using a title lock or monitoring service.
• Keep your personal and property details off public websites and social media.
• Shred sensitive documents related to your home and identity.
• Keep your mailing address current with local and financial institutions.
• Be cautious of phishing emails or scams that ask for personal information.

Final Thoughts

Home title theft is a real and growing concern, but it doesn’t have to catch you off guard. Staying informed, monitoring your records, and taking a few simple precautions can help you protect one of your most valuable assets—your home.

If you’re in the process of buying or refinancing a home, make sure your lender or title company provides proper title insurance and protection. And if you ever have questions about protecting your property rights, a licensed mortgage or real estate professional can help guide you in the right direction.