Deed fraud, which is also referred to as “property title theft” occurs when a criminal files a counterfeit deed to property owned by someone else and then either lives in the property or even sells the property to an unwary buyer.  Deed fraud most commonly occurs after a homeowner dies.  Enterprising criminals monitor the obituaries looking for homes owned by people recently deceased and then forge a deed to the property and record it in the local Registry of Deeds.

Indications that a home you may own has been subject to deed fraud often comes when you receive notices for unpaid real estate tax, water or mortgage bills.  Ironically, another indication of deed fraud is when you own a home and don’t receive your real estate tax bill because the scammer has changed the address to which the real estate tax bill is sent to cover his or her tracks.  Receiving a foreclosure notice when you don’t even have a mortgage is another indication that you have become a victim of deed fraud after the criminal has mortgaged your home by forging your signature.

On July 23rd, the U.S. Attorney’s Office for the District of Massachusetts announced charges against three men accused of participating in schemes involving vacant, unencumbered properties in Massachusetts, Georgia, Indiana, and Tennessee. Prosecutors alleged the defendants impersonated out-of-state property owners and deceived real estate professionals into selling properties to unsuspecting buyers.

Resolving deed fraud can be a timely process, but it is one that you will eventually be able to do successfully.  A counterfeit deed is totally invalid.

The media is filled with advertisements for companies that will monitor your local Registry of Deeds for fraudulent transfers of your property, but you can get the same service for free from most local Registries of Deeds.

TIPS

In order to protect yourself from deed fraud you should regularly monitor your credit reports at each of the three major credit reporting agencies, Equifax, Experian and TransUnion and be on the lookout for bills related to your property.  Monitoring your credit report is something we all should do regularly anyway.  Experian, TransUnion and Equifax offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com.

It also is helpful to regularly check with your local Registry of Deeds to confirm that no one has filed a forged deed to your property.  Most people can access their local Registry of Deeds online for free and in recent years most Registries of Deeds offer free services to notify you if a deed is recorded in your name so you really don’t need to pay any company for this service.

Finally, when you purchase your home, you are offered the option of buying an owner’s title insurance policy which will cover the cost of remedying deed fraud.  An owner’s title insurance policy is a good choice for any homeowner for a variety of reasons.  Lately I have seen and heard advertisements for special insurance that only covers deed fraud although generally all these policies offer is monitoring the Registry of Deeds for filings that relate to your home, which is something that you can do on your own quite simply for free and is not worth the cost.

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