How to Protect Your Home From Deed Fraud
Learn how to monitor your property records and prevent criminals from stealing your equity.
Donna LeValley
Imagine waking up to find your name removed from your home's deed — or worse, discovering your property has been sold without your knowledge. Deed theft, also known as title fraud, is a growing threat, with criminals forging documents to transfer ownership or take out loans against a home they don't own.
According to the FBI’s Internet Crime Complaint Center, real estate fraud continues to cause significant losses. In one report, there were 9,359 complaints totaling $173.6 million, with older homeowners particularly affected.
The good news: protecting your home doesn't have to be complicated or expensive. Simple steps like signing up for county alert systems, regularly checking property records and reviewing your insurance coverage can go a long way. Here's how to reduce your risk and stay one step ahead of deed thieves.
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What is deed theft?
Deed fraud is a type of identity theft. A criminal identifies a potential home to target — often a second home, rental, vacation home or vacant house — and then forges the true owner's signature on the deed as they "sell" it to themselves or a third party, such as a trust.
When they register the sale at the county recorder's office, they'll use personal information gleaned from the internet or elsewhere to assume your identity or claim to represent you.
They may use fake identification, forge a notary signature or even work with an unethical notary to carry out the scam. Once they appear as the legal owner, they can take out loans against the property or even sell it to an unsuspecting buyer.
What can a criminal do with your home's title or deed?
Once a thief gains control of your title, they can wreak havoc. In the worst-case scenario, they might sell your home or take out loans against it, effectively stealing your hard-earned equity.
If they default on those loans, you could face foreclosure or discover you can't sell, refinance or even pass the property on to your heirs.
Criminals can make money from a forged deed in several ways:
- Illegally renting out the property.
- Opening a home equity line of credit (HELOC).
- Refinancing the mortgage to cash out the equity.
- Sell the home to a legitimate buyer and pocket the profit. This is a common approach for unoccupied vacation homes or rental properties.
How to protect property from deed theft
Homeowners should make sure the appropriate authorities have the correct mailing address on file for property notices.
If you plan to be away for an extended period, forward your mail or ask someone you trust to collect it and check on your home. It is also a good idea to visit any vacant property periodically to make sure no one has moved in without permission.
Review your property records for any red flags, such as deeds you or your attorney did not prepare or sign, loans you did not take out, or liens from contractors, brokers or attorneys you did not hire.
Here are four steps you can take to help reduce your risk of deed fraud:
- Pay attention to incoming bills. Keep a close eye out for mortgage, tax and water bills. Sometimes, thieves change the address on bills to hide their crime, giving them more time to profit from the property. If you're looking out for older family members, make a note of when they receive bills each month and check to make sure the bills continue arriving
- Check the status of your property deed. Anyone can check local registries or the county recorder's office for land records and property deeds online in the United States. Try to check your deed's status regularly to ensure no one is trying to take over your ownership rights. Or better yet, if possible, set up notifications at the registry to alert you to any changes
- Monitor your credit reports for signs of identity theft. Most people only look at their credit reports when they're applying for a mortgage or loan. However, if you want to avoid becoming the victim of deed fraud, you should be vigilant. The three major credit bureaus — Equifax, Experian and TransUnion — offer a free credit report to consumers each week at AnnualCreditReport.com.
- Check if you have a title insurance policy or buy one when refinancing. When you buy a house or refinance, you can purchase enhanced title insurance through the American Land Title Association (ALTA). Their Homeowner's Policy ensures against impersonation or forgery. Ask your title company for help with pricing and signing up.
- You could pay for a monitoring service. You could pay for a title monitoring service. Companies like Home Title Lock, LifeLock, and Aura offer home title protection plans that monitor your property records and alert you to potential fraud. These services typically cost between $10 and $25 per month.
Five signs you're the victim of deed theft
There are indicators that fraud may have occurred that you can monitor. Acting fast is crucial if you think you've fallen victim to any fraud. Take action as soon as you notice something suspicious before criminals can do too much damage.
Look for these warning signs:
- You stop receiving your water bill or property tax assessment or bill.
- Utility bills on a vacant property rise suddenly, or you find people living there.
- You stop receiving your tenants’ rent payments and learn that they’ve been making the payments to another person and location.
- You receive payment books or other information from a lender with whom you haven’t done business.
- You find yourself in default on a loan or notified of foreclosure proceedings.
Municipal resources
Many counties offer free property alert services that notify you by email or text whenever a document is recorded on your home. Because there is no central database for these programs, you will need to check your local register of deeds or county recorder's website to see what is available. If online records are not accessible, consider visiting the office in person to review your property's title history.
If you spot anything unusual, act quickly. Contact your local register of deeds and report the issue to law enforcement. You should also obtain a certified copy of the suspicious or fraudulent document, notify the district attorney's office where the property is located, and consult a real estate attorney to help confirm ownership.
In some cases, a legal process known as "quieting the title" may be necessary to resolve disputes and restore clear ownership.
Bottom line
It is smart to monitor your property proactively, especially if you own high-value real estate or live in an area where scams are increasing. While there are paid services that offer title monitoring, it is important to understand that these services cannot prevent title theft. They can only alert you after changes are made to your property records.
You can also check your title on your own. Start by visiting the website or office of the county clerk or register of deeds where your property is located. There, you can review public records to confirm that your name is still listed on the title and that no unauthorized changes have been made.
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