Mortgage fraud....

[flatbutt]

The issue of a nefarious person somehow transferring the title/deed of your home into their name and borrowing against it has been discussed around here lately.

I've read that the so called "life lock" type of insurers are really a scam on their own since they only tell you that your title has been targeted.....after the fact.

Anyone here know the real story about this issue? Can someone actually transfer the title to their name and stick the legit owners with the bill?

Is there a way to protect the title/deed?

[Crowbob]

Very rare.

Here the county clerk is required to notify the owner of record that there has been any activity on the deed to their property.

[DavidI]

Originally Posted by flatbutt

The issue of a nefarious person somehow transferring the title/deed of your home into their name and borrowing against it has been discussed around here lately.

I've read that the so called "life lock" type of insurers are really a scam on their own since they only tell you that your title has been targeted.....after the fact.

Anyone here know the real story about this issue? Can someone actually transfer the title to their name and stick the legit owners with the bill?

Is there a way to protect the title/deed?

As a retired Fraud Investigator, my team handled these cases frequently. In California, a person can fill out a "Quitclaim Deed", have it notarized, and submit the "instrument" to the Assessor's Office that serves the area.

Here is an article about the fraud:

You can register your home with the Los Angeles County Assessor’s Office for free and receive a notification within 48 hours of a legal document (“instrument”) being filed. Read the attached story first and then click on the link for the Assessor’s Office to register.

Larry and Dreama Bilby thought their under-construction home in Tampa, Florida was safe. Although they weren’t living on the property, they monitored it via home security cameras — which is how they noticed two strangers kept visiting the house. Then, they received a notification from their county clerk's office about a change to the deed on their home.

Scammers had used a shockingly simple method to claim the Bilby home: a fraudulent quitclaim deed, filed at the county clerk's office for less than a dollar.

“Just like that, your house is stolen. It’s gone,” Larry Bilby told ABC reporters. “It only cost 70 cents and some paperwork.”

The Bilbys’ nightmare is not an isolated incident. Florida prosecutor Michael Lennon told reporters that Michelle Cherry and Victor Rodriguez targeted several local properties, making multiple trips to the county clerk’s office.

Using forged signatures on fraudulent quitclaim deeds, the couple claimed ownership of at least three properties in the Tampa area. Both Cherry and Rodriguez were arrested and charged with conspiracy to commit fraud and are awaiting trial.

A quitclaim deed is a legal document used to quickly transfer ownership of a property from one person to another. It releases a person’s ownership of a property without specifying what their rights or interests were.

Typically, quitclaims are used to transfer properties without a sale — for example, when a parent gives the family home to their adult child. These deeds require minimal documentation, which makes them appealing to fraudsters looking to claim ownership of properties they have no legal right to.

In cases like the Bilbys’, scammers forge signatures and file these deeds at the county clerk's office, effectively stealing the home by transferring ownership without consent. This tactic allows the scammer to secure loans against the property or even sell it to unsuspecting buyers.

Real estate fraud is a growing issue, and Florida officials are calling for legal changes to make quitclaim deed fraud more difficult. In the meantime, there are practical steps you can take to protect your property.

The Bilbys credit their county clerk's property fraud alerts with notifying them of the change in their deed, which allowed officials to catch the fraudsters in action. Check if your local county clerk's office offers property fraud alerts and set them up. These alerts will notify you via phone or email if changes are made to your deed.

Keep a close eye on your property. Even if you aren't living there, security cameras can help you spot suspicious activity. Most fraudsters look for properties they think are abandoned, hoping their crimes go unnoticed.

Fraudsters often gather details from public records and online data, so limit the information you share online. Set up digital delivery for important documents like utility and phone bills, especially if you aren’t living at the property. Fraudsters may steal mail and use that information to further their schemes.

Until stricter regulations are in place to limit this type of fraud, stay vigilant and set up fraud alerts.

This is a link to the above story - https://finance.yahoo.com/news/just-stolen-tampa-couple-home-120300908.html This is a link to the above story.

This is a link to the Assessor’s Office https://assessor.lacounty.gov/news-information/enotification

[wdfifteen]

I bought buyers title insurance on our house at the suggestion of our realtor (personal friend). He referred to an instance where two people claimed to own a property or something “It doesn’t happen often, but it can wreck your life if it does.”
I think it sucks. You pay a company to do a title search, and then YOU buy insurance in case THEY effed up.

[pwd72s]

Placing a home in a living trust offers some protections against this...just going by what the lawyer who set up our trust told me in passing...I don't have the why or how details...perhaps a lawyer here could know more?

[Rick Lee]

Maricopa County lets you sign up for email alerts about any action on any title that matches your name. We've gotten a few when others with Chinese names that match Mrs. Lee's have bought houses in the county.