Most homeowners worry about break-ins, storm damage or costly repairs. Few realize that criminals may be able to steal a home without ever setting foot on the property.
Title transfer fraud — sometimes called deed fraud or home title theft — occurs when scammers use stolen personal information and forged documents to fraudulently transfer ownership of a property. Once ownership records are altered, criminals may attempt to take out loans against the property’s equity or even sell the property to an unsuspecting buyer.
While any property can be targeted, criminals often target properties that may be less actively monitored, such as vacant homes, rental properties, vacation homes or homes owned outright without a mortgage. Once fraudulent ownership documents are recorded, the scammer may attempt to borrow against the property’s equity or sell the property to an unsuspecting buyer.
While this type of fraud is relatively uncommon, it appears to be growing, and the financial consequences can be devastating. Because many victims don’t discover the fraud until significant damage has been done, regular monitoring is critical.
Here are some of the warning signs your Better Business Bureau recommends you watch for:
— Unexpected mail regarding mortgages, loans or liens you did not authorize
— Property tax notices that stop arriving or begin showing unfamiliar information
— Notices regarding changes in ownership, deeds or recorded documents
— Collection notices related to debts secured by your property
— Individuals inquiring about purchasing or viewing property you are not selling
— Unfamiliar activity appearing in public property records
The sooner suspicious activity is identified, the easier it may be to address.
Here are several proactive steps that our team at BBB suggests to help you reduce your risk of becoming a victim of title transfer fraud:
Protect your personal information. Many title fraud schemes begin with identity theft. Secure sensitive documents, use strong passwords and be cautious about sharing personal information online or in response to unsolicited requests.
Monitor your property records periodically. Many county register of deeds offices provide online access to public records, allowing homeowners to verify that ownership information remains accurate.
Review financial and tax-related correspondence carefully. You don’t want to ignore unexpected notices from lenders, tax authorities or government agencies. Be sure to contact their office at a verified number if you receive anything indicating your property deed has been compromised.
Consider freezing your credit. A credit freeze can make it more difficult for criminals to open new accounts using your information.
Homeowners should also periodically review public property records to ensure ownership information remains accurate. In Hamilton County, a new, free tool makes that easier.
The Hamilton County Register of Deeds recently launched a property alert system that notifies users whenever a document is recorded that matches their registered name, business name or property address. This free service can provide an early warning if suspicious activity appears in county records.
Property owners can enroll at register.hamiltontn.gov.
Here are the steps we recommend if you suspect you’re the victim of title transfer fraud:
— Contact your local Register of Deeds or County Clerk’s office and request copies of any suspicious documents.
— File a report with local law enforcement.
— Report identity theft through the Federal Trade Commission’s identitytheft.gov website.
— Our BBB also recommends notifying financial institutions and placing fraud alerts or freezes on your credit reports if personal information may have been compromised.
If you have questions or need additional information, you can reach BBB serving Southeast Tennessee and Northwest Georgia’s team at 423-266-6144 or tngabbb@chattanooga.bbb.org.
Michele Mason is president of the Better Business Bureau in Chattanooga.