Home title theft occurs when a criminal fraudulently transfers your property deed into their name. Sometimes called deed fraud, home title theft is rare, but when it does happen it’s usually the result of identity theft.
Title Theft can lead to the rightful owner losing their property. It can also result in legal action being taken against the person committing title theft.
The FBI reported that in 2017 there were 9,654 cases of real estate fraud, resulting in more than $56 million in losses. Home title fraud has grown considerably since then, with 11,578 cases of real estate fraud reported in 2021, totaling more than $350 million. (Source Fool.com)
Criminals target vulnerable populations such as the elderly, disabled, investors and landlords. Then cyber criminals forge documents including IDs, deeds, mortgage satisfactions, loans and other legal documents depending on the type of scam they are pulling.
The documents are recorded at the county Recorder of Deeds office. County Recorders are responsible for making sure a document meets specified standards of formatting and naming conventions. They are not required nor qualified to ensure the legality of the documents.
Eventually the true homeowners finds out about the fraud, but by then the damage is done, the fraudster and money are often long gone, and the homeowner will incur thousands of dollars in legal fees to fight the fraud and regain ownership of their property.
According to the U.S. Census Bureau’s data, the typical American’s net worth at age 65 is $194,226. However, removing the benefit from home equity results in that figure plummeting to just $43,921.
SOURCE: U.S. CENSUS BUREAU
Are you at high risk of title theft in Pennsylvania? There are a few types of property owners that are at a higher risk for title theft schemes. Individuals who are at a high risk of becoming a victim of title theft include:
Home title theft and deed fraud are serious issues that can have devastating consequences for homeowners. Fortunately, there are steps you can take to protect yourself from these crimes.
Whether you are a first-time homebuyer or a seasoned property owner, this information about home title theft will provide you with valuable insights into how to protect your assets and minimize the risk of title theft.
Real estate fraud is a serious issue that can have devastating consequences for homeowners, home buyers, and title insurance agents. Homeowners should be aware of the different types of real estate fraud schemes so they can protect themselves from becoming victims.
