Turning Fiction into Fact: The Truth Behind Home Title Theft

Posted on Friday, August 2, 2024
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by Outside Contributor
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Sponsored By: EquityProtect

Over the last several years there has been growing research and publicity regarding home title, or deed, theft. While the crime itself is very real and very scary, the accuracy of the press has left consumers uncertain of the legitimacy and to what extent they are at risk. So, what is the truth? Are fraudsters across the nation trying to steal your home? Is it possible for someone to steal your home while you are still living in it? Is there any way to actually prevent this crime from occurring to you? In order to truly understand home title theft, one must first determine how it happens and, more importantly, who is at risk.

What Is Home Title Theft?

Home title theft is the process of changing the legal ownership of a property, without the legitimate owner’s consent or knowledge, with the intent of selling or refinancing the property for monetary gain. This is typically completed by submitting a grant deed to the county record’s office that reflects a falsified ownership change or sale. The grant deed is a legal document or mechanism that transfers real estate ownership from a seller to a buyer. Sadly, with the advancements in technology, it has become easier for criminals to falsify these documents. With only a few key strokes, thieves around the nation can have documents accepted in any recorder’s office, and with the growing enhancements in artificial intelligence (AI), this process is becoming streamlined.

How Is This Possible?

The United States County Recorder a vital organization that compiles millions of documents daily. A county recorder’s job entails keeping public records of actions and transactions that are required by local, state, regional, and national governments. As noted by the California Department of Real Estate, “the county recorder is not responsible for verifying the validity, authenticity or legitimacy of the document that is recorded. In other words, the recorder is not responsible for detecting a fraudulent document, and the recorder does not look beyond the document itself. If the document meets the essential records requirements, and the proper fees are submitted, the county recorder is obligated to and will record the document.” This fact, or flaw some might say, is how and why home title theft is able to occur.

Furthermore, seller impersonation has risen drastically in recent years. In early 2024, The American Land and Title Association (ALTA) issued a warning that “sophisticated fraudsters are using the real property owner’s Social Security and driver’s license numbers in the transaction, as well as legitimate notary credentials, which may be applied without the notary’s knowledge.” The creativity the fraudsters are now using seems to be ever increasing and with the advancement of AI, where will it stop?

Now That the Document is Recorded, What Happens Next?

Once a criminal has control of a home’s title, unfortunately anything is possible. Throughout the nation there have been countless homeowners who have found their properties sold without their knowledge. Here are a few recent examples:

While these stories may seem few and far between, the truth is home title theft is happening every day and is on the rise with the recent advancements in technology. Possibly the most notable occurrence was the attempt to foreclose Elvis’ Graceland home in 2024 in which criminals claimed the Late Lisa Marie obtained a $3.8 million loan and failed to pay it back.

Unfortunately, these horrifically noteworthy occurrences often do not receive their deserved press due to underreporting, not because of lack of care, but simply because of a lack of knowledge. There are thousands of owned lots of land that are never visited and are targets for scammers. The FBI released an article touching on this very topic. Many raw landowners only become aware of the fraud after failing to receive their tax bill for the property, sometimes missing the bill for several years before realizing the issue. This devastating crime can result in an even more devastating amount of money and time needed to correct the fraud filled with daunting legal fees.

Who Is At Risk?

The risk for home title theft can be viewed on a sliding scale. The properties with the most risk are raw land properties owned outright, followed by investment properties owned outright. The properties with the lowest risk are homes and raw land plots with a high balance mortgage in relation to the property value. Simply put, properties lacking equity are not at risk of this financial crime and frankly have no reason to be concerned.

Statistically speaking, 55% of the population is at risk for home title theft. Properties with a lack of mortgage or substantial equity have an elevated risk associated with owner impersonation which can result in attempts to falsely sell or refinance the property.  Properties at moderate risk are those with a loan between 20-50% of property value.

What Can I Do?

The are many so-called options for at risk property owners. Historically, the most common recommendation has been to subscribe to a notification service. The premise behind a notification system is exactly as it sounds: it offers the property owner knowledge of a change in title, but only after it has been recorded. The notification of change does not actually stop the financial crime from occurring; it simply notifies the rightful owner they need to take swift legal action. The homeowner continues to be at risk until they are able to regain their title through the legal system. Unfortunately, with a drawn-out legal processes and as criminals often have a sale or loan already in process, it is truly a race against the clock. While notification and monitoring systems may be beneficial for low-risk properties, these companies do absolutely nothing to prevent the financial crime of moderate to high-risk properties. So, what is the answer? How do home and landowners prevent home title theft? One word: EquityProtect.

EquityProtect is a preventative fraud system specifically designed to prevent the financial portion of home title theft. Through EquityProtect’s patented two-factor authentication technology akin to the major financial institutions coupled with its copyrighted documents, EquityProtect locks down a homeowner’s title in unprecedented fashion. It is the only company of its kind and is the only company who can truly protect your equity. If you would like to have your property evaluated for risk of home title theft, visit equityprotect.com for their free risk evaluation tool, or contact their office at (888)213-2959.       

Quotes From Our Media Sponsors:

“My name is Dennis Prager I recommend EquityProtect with their ability to stop the financial crime associated with deed fraud” Dennis Prager

“EquityProtect is the only home title protections service I recommend” – Mike Gallagher

“EquityProtect does not just notify you of a title change, EquityProtect stops home title theft with their patented technology.  I truly believe in EquityProtect” – Dr. Sebastain Gorka

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