A real estate scam that is rising and becoming more common is DEED FRAUD, also known as HOME TITLE FRAUD, which involves criminals illegally transferring property ownership without the legal owner’s consent. This can happen in a number of ways, including, but not limited to the following:
- FORGING A DEED: A criminal forges documents that transfer ownership of the home to themselves, and then files them with the authorities.
- STEALING IDENTITY: A criminal steals the identity of the homeowner and attempts to transfer the deed to their name.
- SELLING A FAKE TITLE: A criminal creates a fake title and sells it to a homebuyer, who receives a worthless deed.
- VACANT LAND SCAM: A criminal searches for vacant land without liens or mortgages, and then contacts a real estate agent to list it for sale.
A recent notable attempt was the attempt by a fraudster to steal Graceland.
Deed fraud is difficult to detect and prosecute, which gives criminals time to act. It can have a disproportionate impact on vulnerable communities, such as the elderly and homeowners of color.
The scam roughly works like this…Your home is discovered in an online search, for no particular reason, but the bigger targets are the elderly who have the home paid for and those who have limited financial means to defend the theft. The fraudsters type up a Quit Claim Deed (most common approach) and using fake Notary Credentials, notarize the illegal Transfer of Deed. They file this with the Recorder of Deeds and now they have actual ownership of your home. Then, quietly they will obtain a loan for an amount anywhere from 50% to 80% of the Fair Market Value of the Home. The lending company (usually an internet-based Lender) will approve the loan once the ownership is confirmed and a value is agreed upon, many will use Zillow for the FMV analysis. The fraudster now departs with money. After 90 Days of not receiving a payment on the property, they begin foreclosure procedures and demand you to vacate the property, even having the Sheriff remove some people from their homes. Because 90 days or more has transpired the fraudster is nowhere to be found, typically they are overseas and beyond the reach of our Law Enforcement Officers and leaving you to prove you actually do own the property.
Now this is where it can get tricky. Proving you own the home, is a Civil Matter, which you should retain a lawyer to represent your interests as it is extremely complex, as it involves a Transfer of Deed, Real Estate, and Fraud. The Fraudster isn’t going to appear in court, he probably isn’t an American Citizen. The bank that made the loan will appear in Court, saying they have proof of collateral, which they do in a manner of speaking. So you will have to pay the court filing fees, hire an attorney, and file a Stay to prevent the loss of your property while you attempt to prove the Deed is fraudulent. You are talking a couple of thousand dollars at a time when you really do not have it, which is why the elderly and lower-income owners are targeted.
I am a licensed Private Investigator and a Licensed Real Estate Agent knowledgeable of the contracts involved in Real Estate sales. I possess the equipment and software to monitor Deeds. When an action against your deed is initiated I will notice it, and verify the legitimacy of the Transfer of Deed, if it is verified as fraudulent, we can stop the transfer and refer the matter to the proper authorities on your behalf, saving you time, money, and a lot of worry.
Typical Title Insurance costs 0.5% to 1.0% of the value of the home annually. So, if your home is valued at $200,000.00 and you subscribe to Title Insurance at 0.5% you will pay $1,000.00 annually. If an event occurs you may be required to pay a deductible of 20% and it may take several months to correct the matter.
We offer a service with 2 easy payment methods. You can enroll monthly at $20.00 per month or you can pay a one-time fee of $210.00 for annual coverage. Contracts will automatically renew every year on your annual date. We currently operate in Missouri but are looking to expand into Colorado and Nevada shortly.
If you would like to enroll click here
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