In 2008, the FBI issued a warning about the latest scam on the block, home title fraud. Thieves have found ways to steal houses without homeowners knowing about it. Known as home title fraud, here’s what it is and how you can protect yourself.
What is home title fraud?
Home title fraud is where a criminal steals a home by forging a deed. They then illegally transfer ownership of the home without the real homeowners permission. It is essentially where a fraudster steals your home and either sells it or takes out a loan against it without you even knowing about it. When the mortgage is not paid, the property enters foreclosure.
The scammer first finds a property they want to steal, typically one with equity in it. They will then forge documents that transfer the ownership of the house to themselves. After they file the documents with the proper authorities, they now have legal ownership of the property. They then sell the property to unknowing third parties or take home equity lines of credit (HELOC) against the property and don’t pay it back. Some criminals have also taken multiple mortgages against the property.
According to the FBI, there are other variations that criminals can take when looking to steal property. Con artists find a vacant home, like a rental property or vacation home and find out who the owner is through a little research. They then steal the owner’s identity, illegally transfer the title to their name, and pocket the proceeds from selling the property…
