8 Sure Ways How to Prevent Home Title Theft Fraud and How to Protect It if It’s Stolen
This article tackles how prevalent home title theft is among homeowners and how to ensure home title or deed theft protection to avoid being a victim of this fraud.
We turned to industry experts for their insights on how to prevent deed theft and what to do if the title is stolen.
How does someone steal your home title or house deed and what to do about it? Read on for the best ways to protect your home from title fraudsters.
Home Title Theft Statistics: How Common Is Home Title Theft Fraud?
How often do you help clients resolve home title or deed theft cases?
What Is the Home Title Theft Fraud?
Merideth Nagel, the founder of the Florida title firm Concierge Title, shares with our readers her insight on how home title theft works and what happens if your title is stolen.
Home title theft is a type of real estate scam where someone unlawfully uses a homeowner’s personal information to falsify documents and illegally take ownership of their home.
The thief fraudulently applies for a home equity loan or line of credit under the homeowner’s name and then fails to make payments, leaving the homeowner facing foreclosure and damage to their credit score.
There are several methods criminals use to commit home title theft, including phishing schemes, malware, data breaches, exploiting unsecured Wi-Fi networks, and stealing mail.
Homeowners can also be at risk if they misplace important documents like their deed or mortgage statement.
Title theft can lead to unauthorized sale or foreclosure, potentially resulting in the loss of their home.
Seniors are particularly vulnerable to this type of theft, as well as other forms of identity theft.
However, any homeowner who doesn’t monitor their financial records and credit reports or handle sensitive mail carefully is at risk.
Can Someone Really Steal Your Home Title?
Majority of our experts believe that home title theft is a real problem, with some of them receiving complaints from homeowners themselves.
Our title company is attorney-owned, so we often get calls from our clients and potential sellers wondering how to protect their property title.
In Florida and specifically here in Lee County, this is a VERY real threat.
Lee County has implemented safeguards to try to avoid some of the fraud such as requiring valid ID to be presented to the Clerk for BOTH the seller and the buyer before they will record a deed.
The IDs are not recorded along with the deed, they are simply kept in their records should they need to refer back to it.
Yes, the possibility of title theft is real. Properties that are free and clear of mortgages, vacant land, or unoccupied properties are more vulnerable.
In terms of credit perhaps, I can’t imagine how title theft actually takes place.
Title can be slandered. It can certainly be clouded, but at the end of the day, I can’t see how a legitimate title holder can be screwed.
Absolutely! I “catch” several fraudulent sellers each year.
For 99.9 percent of home buyers, no.
8 Ways to Prevent Home Title or Deed Theft
1. Review Your Title Information Regularly
Look up your name or property on the public records periodically to confirm nothing has been recorded against the property.
It is always important to review your tax bill annually to see that your name is listed correctly.
To protect your home title from fraud, regularly monitor your property’s title information by utilizing online portals offered by many counties.
Verify the identity of those requesting information about your property, especially unsolicited requests.
Periodically review your property records at the county recorder’s office or online, if available. Look for any unauthorized or suspicious changes to your title information.
Impossible to prevent someone from filing a document in the public records. However, when it conflicts with the existing record, sometimes the recording department will raise questions.
But you can’t rely on that to prevent a situation where someone is deliberately creating a clouded title for bad purposes.
2. Protect Your Personal Information
To protect your home from deed theft, there are several steps homeowners can take.
Safeguard your personal information. Dispose of unwanted documents containing personal information by shredding them.
Avoid carrying sensitive documents like your Social Security card or birth certificate with you, and be cautious about sharing personal information over the phone or online unless you’re certain of the recipient’s identity.
Stay vigilant about your mail. If you notice a sudden halt in receiving bills or other important mail, it could be a sign that someone has changed your address without your knowledge.
Keep important documents, like your deed and mortgage statement, securely stored.
Regularly monitor your credit report. You’re entitled to a free credit report from each of the three major credit reporting agencies annually.
Checking your report regularly can help you detect any suspicious activity, such as unauthorized account openings or changes.
Protecting yourself from the rising threat of home title theft is crucial in our digital age.
Secure your mail promptly to prevent unauthorized access to documents with personal information.
Keep your computer and devices updated with the latest security software.
When accessing your property records online, always use strong, unique passwords and update them regularly.
Exercise caution when sharing sensitive personal information, especially property details, both online and over the phone.
Shred documents containing sensitive information before disposal, such as mortgage statements and property tax bills.
When thinking of how to prevent home title theft fraud, one of the best ways is to safeguard your personal information, especially sensitive documents like property deeds, mortgage papers, and other related documents.
Store them in a secure location, such as a locked safe or a safe deposit box. Shred any documents containing personal and financial information before discarding them.
This includes old utility bills, bank statements, and other papers that could be used to impersonate you.
3. Keep an Eye on Your Property
Report any unfamiliar individuals or suspicious activity around your home or neighborhood to the authorities.
Installing a security system can also help protect unoccupied properties and deter thieves from stealing important documents like your deed or mortgage statement.
Be aware of anyone trying to access your home or if you receive phone calls claiming they see your home for sale online.
Catching possible title theft or deed fraud is extremely important in trying to correct the title issue.
Another low-tech way to protect vacant land is to place a sign at the property stating that the property is not for sale. This alerts potential buyers.
4. Avail of Title Insurance
Consider purchasing owner’s title insurance if you didn’t opt for it at closing. This policy can provide home title or deed fraud protection in case any liens or claims are made against your property while you’re the owner.
While title protection services may seem appealing, they often come with fraudulent practices, so it’s essential to be cautious.
Title insurance can provide an extra layer of protection, covering potential losses arising from title issues, including theft.
5. Sign Up for the County’s Title Monitoring Alerts
Several counties in Florida have a free monitoring service that you can sign up for with the clerk of court or tax collector.
If your county does not have one, there are several paid services out there as well.
This won’t prevent the deed from getting recorded, but the property owner will get notified pretty quickly so they can act accordingly and stop home title theft.
Many counties are now offering homeowners the opportunity to sign up for alerts when a document is recorded in the public records with their name.
This is a good way to protect your house title as this can alert you immediately to the possibility of title theft or deed fraud.
One thing you can do to ensure home title fraud prevention is placing an alert with the county.
Broward County is awesome in implementing and Miami-Dade County is scheduled to be on board with the same procedure.
For home title theft prevention, the homeowner can subscribe to property notifications from the local county property appraiser. Also check your mailing address is correct with the property appraiser.
6. Make Use of Title Lock Services
Consider employing title lock services that actively monitor your property title for any suspicious activity, providing real-time alerts for added security.
Title lock or other online identity theft companies can monitor things like this for home title theft fraud protection.
7. Put the Property in an LLC or a Trust
Property owners can consult a real estate attorney who may be able to suggest ways to put the property into a trust or LLC, etc., which could make it more difficult for a potential fraudster.
8. Stay Updated About the Latest in Title Scams
Stay informed about common scams and tactics employed by identity thieves and title fraudsters.
Vigilance, education, and proactive measures are key to significantly reducing the risk of home title theft.
The best thing you can do for this is educating yourself on the current scams that are happening. Unfortunately, scammers are getting smarter, so it’s best to stay on top of it.
What to Do if Your House Title Is Stolen?
Once the title has been conveyed fraudulently, they should immediately call an attorney and/or call the title company that handled the closing if one was involved.
If a title company was involved, the homeowner can make a title claim and go from there. If not, a real estate attorney can get involved to help get their property back, along with possible other legal remedies.
When someone stole the deed to your house, contact local authorities along with your local property appraiser.
Hire a real estate attorney. In some cases, the newer title insurance policy may provide coverage. Contact the underwriter on your Owner’s Title Insurance Policy.
I have (thankfully) never experienced this in my thousands of real estate closings.
But, simple: get a title policy from an established underwriter. If you do that, even if, God forbid, an identity theft happens, you’ll be covered. Peace of mind.
Setting up alerts with the county. Being vigilant and calling the county to advise of the theft and filing a police report immediately.
File an action to title quiet. Report the fraud to the state attorney for possible prosecution.
What Are the Signs of Home Title Theft?
As the possibility of someone stealing the deed to your home is very real, how to know then if your home title has been stolen? Below, our experts share a few signs of deed fraud.
On the deed itself, it is often difficult.
Our experience is that a seller did not receive a tax bill for the current year, so they call the tax collector to see why and at that time the tax collector will tell them that there was a conveyance and they no longer own the property.
The tax collector’s office has recently started sending out letters to the consumer advising if they have changed title to their property which gives the homeowner a heads-up.
Another sign is when you start to receive documents for soliciting, etc., with a different name.
A common sign that the title was transferred is not receiving your tax bill or notices from the county.
Wild deeds in the public records. Notices received via snail mail in someone else’s name.
Forgery, attempt to re-sell to find a cloud on title.
How Bad Is Home Title Theft for a Homeowner?
Just how serious is home title theft? We asked our experts on the gravity of this issue and here’s what they have to say about the subject.
They could be losing their entire asset and all the funds that have been put into it.
At minimum, they will have to hire an attorney and retrieve the property through the court. This can take time and can be expensive.
It’s the theft of their most prized possession and to undo is very stressful and quite daunting.
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