Deed Fraud: Don’t Lose Your Home

There are so many articles out there talking about identity theft. There are social security scams and credit card numbers being stolen. But not a lot of places are talking about deed fraud and is just as dangerous as other forms of identity theft. Why is that? And what is it, exactly? Deed fraud could actually end up ruining the rest of your life if it’s not taken care of immediately, so here are the ins and outs of what it is, and what you can do to protect yourself.

What Is Deed Fraud?

Deed fraud is when someone takes another person’s identity, forges their name on a deed, and then takes the title of the home. It may seem like a simple process to get your home back, but it’s quite complicated to undo the work for an identity thief. This is why it’s a good idea to get title insurance before it happens. Feel free to contact Sunnyside Title Insurance today!

A deed fraud typically occurs when there is a previous owner who is deceased because it’s easier to steal the identity of a dead person. Deed fraud is also called “property title theft” and “identity theft house stealing.”

How Do Scammers Commit Deed Fraud?

Criminals typically look at the obituaries to find out who is deceased, and then the scam starts. This can involve vacation homes, unoccupied homes, and abandoned homes. It isn’t that strange for these scammers to actually occupy the home as well, but they’re better off selling the property to an unsuspecting buyer in order to make money, and that scenario can further complicate issues.

When a family member dies, it’s important that you initiate probate of the estate as soon as possible and monitor the registry of deeds to discover anything that might be affecting the real estate of the deceased.

Warning Signs That There Might Be Deed Fraud

There are some important signs to look out for to indicate that deed fraud might be taking place.

1. There are unpaid bills. If you receive a notice of an unpaid water bill or mortgage bill, then it’s likely that deed fraud might be taking place. Alternatively, you could still be the victim of deed fraud if you don’t receive a water or tax bill when you know you should have gotten it. The thief might have gone to the taxing authority and changed the address where the bills should be sent.

2. If you receive a notice of foreclosure when you don’t have a mortgage. This is a huge red flag that something is wrong.

3. If there is evidence of activity taking place in an unoccupied home.

If any of these are brought to your attention, you should act immediately and not wait. The longer you wait, the more difficult your case will become and you’ll have to spend more money to rectify it.

Responsibility Of The Registry Of Deeds

One would think that the Registry of Deeds would do a better job of conducting checks on the identity of the person filing the deed. However, their only responsibility is to see that the format of the deed is proper, that it’s signed, and that the signature has been notarised. It isn’t their job to compare the signature on record to determine if a forgery has been committed. Because of this, there are specific steps that can be taken to prevent yourself from becoming the victim of a deed fraud.

Monitor Your Credit Reports

Federal law gives everyone the right to have a free copy of their credit report, so monitoring it is made much easier for you. But doing so also gives you access to discovering whether anyone is taking any financial actions in your name. You can also choose to get credit monitoring through any identity theft protection services for extra piece of mind. This will help you to get notified as soon as something crops up so that you can take immediate action against it.

Checking The Status Of Your Deed

Registries of deeds are accessible online, meaning that you can check them whenever you want. It would be a good idea to check on the status of your deed on a regular basis to confirm that there is no one interfering with your property ownership. Some registries even offer services that notify you when any actions are taken that affect your property.

Investing In Owner’s Title Insurance

Having owner’s title insurance can offer a lot of protection, especially against the damage done by deed fraud. The insurance can also cover the costs involved in rectifying the problem. Fraud is detected early on and action is taken to prevent serious harm from coming to your deed. Other common problems that trigger title insurance include:

• Estate matters: in the event that an unknown heir is discovered, then future property ownership can be affected.
• Property disputes: public survey plans might show different boundary lines than what was originally recorded, which can lead to property disputes.
• Public record errors: any clerical or filing errors can affect the validity of a deed.
• Liens on the property: any outstanding liens means that the property can be used as collateral for outstanding debt.

There are other matters that are covered by title insurance as well, so it could be worth it to spend a little extra to ensure that such problems don’t arise and affect your ownership of your own property.

Deed fraud is a matter that should be taken very seriously and it’s not a problem that is going to go away on its own. You have to be proactive in looking out for any issues that could affect your deed and ensuring that other individuals aren’t trying to interfere with it. If you are concerned that your ownership rights might be affected, speak with an attorney as well as a title insurance provider to help you set up all the protections and documentation you need to prevent yourself from becoming a victim of deed fraud.