2  Protecting Your Home from Title Theft – Your home is more than just a place to live—it’s one of your most valuable investments and a cornerstone of your financial security. But what if someone could fraudulently claim ownership of it without your knowledge? Title theft, also known as deed fraud, is a growing concern in today’s digital world, and it can have devastating consequences. The good news is that safeguarding your home against this type of crime doesn’t have to be complicated. With a few proactive measures, you can protect your property and enjoy peace of mind knowing your home is secure.

What is title/deed theft?

Title and deeds are similar in nature, but they are technically two different things. A title represents homeownership, while a deed is the physical document that serves as proof of that ownership. Because the deed is a tangible record, it facilitates the transfer of title from the seller (grantor) to the buyer (grantee). During the closing process of a home purchase, the grantee receives both the title to the property and the corresponding deed.

Fraud is a form of identity theft, someone intentionally targeting a property such as a paid off house, vacation home, rental properties, or vacant houses. Using forged documents, they falsify the homeowner’s signature to illegally transfer ownership, often to themselves or a third party(keeping their name off of it) like a trust.

The fraud is completed when the phony transaction is recorded at the county recorder’s office, with perpetrators steal personal information(most likely off the internet), fake identification, or even collaborating with unethical notaries to legitimize the scam. Once the property is in their name, they can exploit it—sometimes selling it to an unsuspecting buyer.

When is it too late?

Thieves can do almost anything with your home after the acquire title. Everyone’s worst nightmare is losing their home. As soon as it’s out of your name, they could fail to make payments on your loan(if it’s not paid off), you could end up in foreclosure or be unable to sell or refinance the home.

There are various methods by which criminals can profit from a forged deed:

• Sell the home to a legitimate buyer and pocket the profit. This is the most common approach.

• Refinancing the mortgage to cash out the equity.

• Opening a home equity line of credit (HELOC) on your home.

How do I protect my home?

You should ensure that the correct mailing address is on file with the appropriate authorities. And your name and address match with what is on file. You should also ensure you check your mail regularly and your mailbox is secure. Thieves may try and intercept letters or correspondence from the city so you don’t get it in your mail box. So If you plan to be away for an extended period of time and you don’t have a secure mailbox. It might be a good idea to arrange for mail to be forwarded or ask a trusted individual to collect your mail and check on your property. Additionally, make it a habit to check any mail from vacant/rental properties.

When you check your mail, look for new names, or companies you don’t recognize/ haven’t heard of. Look for any new loans you didn’t take out, as well as liens of contractors, subcontractors, real estate brokers or attorneys who you didn’t hire.

Vacant properties, such as vacation homes, are frequently targeted by criminals, especially when the legal owner has passed away. Older homeowners are at higher risk since they often have significant equity in their properties and may be less familiar with online threats or scams.

Here are four practical steps to help prevent deed fraud:

1. Stay Alert on Bills: Watch for mortgage, tax, and utility bills. If thieves change the billing address to cover their tracks, it could delay your awareness of fraudulent activity. If you’re assisting older relatives, note when bills typically arrive and ensure they continue to be received on time.

1. Regularly Check Property Deed Status: Access your local registry or county recorder’s office online to monitor your property deed. Regular checks can help detect unauthorized changes early. If available, set up text/email alerts with the registry to receive notifications of any updates.
2. Monitor Credit Reports for suspicious activity: Being vigilant about your credit reports can help you catch signs of identity theft that might lead to deed fraud. Use the free weekly credit report service offered by Equifax, Experian, and TransUnion at AnnualCreditReport.com
3. Purchase Title Insurance: Consider enhanced title insurance, especially when purchasing or refinancing a home. Policies offered through the American Land Title Association (ALTA) protect against forgery and impersonation. Consult your title company for advice and pricing.

Should you pay $ for monthly title theft protection services?

While paid monitoring services like Home Title Lock exist, you can simply safeguard your property at no cost by periodically reviewing your property record on your county’s register of deeds website. Most monthly services cost average around $20/month which can add up to $240 annually. But with some due diligence, you can protect yourself for free by checking the website of your county’s registrar. Since thieves have to file the new ownership paperwork at the registrar office, they have to show their face in person impersonating you which is primarily how most of them are caught. Which is why it is a good idea to have the name of your property in both you and your spouses name, two signatures could be more difficult than one.

Conclusion: How at risk am I for deed theft?

Over 11,700 people annually are victim of real estate theft (down from 13,638 in 2020). It is not particularly common in the US and as administrative paperwork increases, the odds of getting away with deed theft decreases. It still possible and if you are older, you are more at risk. 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.