Title fraud happens when a criminal uses forged documents to claim ownership of a property they do not own, then sells the home or borrows against it to steal the equity. It sounds extreme, but it is happening across the country at a rate that has increased over 300% since 2015.
How Does Title Fraud Actually Work?
The process is simpler than most people expect. Here is a typical fraud scenario:
- The criminal selects a target. Vacant properties, rental homes, and properties owned free and clear (no mortgage) are most vulnerable because there is no lender actively watching the title.
- They forge a deed. Using publicly available county records and basic document software, a fraudster creates a fake deed that transfers ownership from you to themselves (or to a fake identity they control).
- They file it with the county recorder. Most county recording offices accept deeds without verifying that the grantor (the person supposedly transferring ownership) actually signed or authorized the document. The deed gets recorded, and the public record now shows the fraudster as the owner.
- They cash out. Once the fraudulent deed is recorded, they can sell the property to an unsuspecting buyer, or take out a home equity loan against it. The money is gone before anyone notices.
When Do Most Homeowners Find Out?
On average, homeowners who do not have monitoring in place discover title fraud years after it has occurred, often when they try to sell the property or when a lender contacts them about a mortgage they never took out. By then, untangling the legal mess can take years and tens of thousands of dollars in legal fees.
Who Is Most at Risk?
The following property types are targeted most often:
- Vacant or investment properties with no mortgage
- Properties owned by elderly homeowners
- Rental properties where the owner is not present
- Inherited properties during estate settlement
- Any property in a high-equity market
How to Protect Yourself
The most effective protection is continuous monitoring of your property's public records. When you know about a suspicious filing within 24 hours instead of years later, you can act before significant damage is done.
Home Title Alert monitors your county deed records around the clock and sends you an instant alert the moment any filing is detected on your property. You do not need to check anything manually. We monitor and alert so you do not have to.