Home Title Theft: What It Is and How to Protect Yourself

Home Title Theft: What It Is and How to Protect Yourself

Home title theft, also known as real estate fraud, is a serious and growing concern for American homeowners. This kind of scam involves thieves forging documents to steal property ownership, selling the property, and then vanishing. Victims of this crime typically suffer severe emotional and financial consequences.

As technology evolves, criminals are becoming increasingly sophisticated in how they commit home title theft. They can instantly obtain personal information, forge documents, sell homes that aren’t theirs, and run away with the profits. This expediency makes it extremely difficult for homeowners to recognize and avoid these types of scams.

I wrote this article to promote awareness of this growing problem and to share insight into how you can protect yourself.

What Is Home Title Theft?

Home title theft is a type of real estate fraud where someone forges a deed using the personal information of a homeowner in order to take their property. If the thief applies for and is approved for a home equity loan or line of credit in the homeowner’s name and then defaults on the payments, the homeowner is at risk of foreclosure and credit harm.

How Does Home Title Theft Work?

Home title theft can happen in any one of the following ways:

  • Identity theft: Identity thieves exploit homeowners’ personal information, such as their address, Social Security number, and name. Armed with this data, they can impersonate the property owner and forge documents to commit fraud.
  • Property records fraud: Properties that have recently changed hands or have been abandoned may be targeted by criminal activity. Thieves change the ownership of the property by submitting fictitious paperwork to local government offices.
  • Forged deeds: Criminals are able to produce forged deeds that give themselves or a fictitious person ownership of the property.
  • Wire fraud: Once the title has been effectively stolen, thieves can use wire fraud to sell the property and quickly send the money out of the country.

Here’s how it works: A criminal forges a homeowner’s signature on a property deed, transferring ownership to themselves or a third party, such as a trust. Using personal information they’ve gathered online or elsewhere, they register the fraudulent sale with the county recorder’s office, posing as the homeowner or claiming to represent them.

The thief may then use a fake identity, a forged notary signature, or even collaborate with a dishonest notary. Once they’ve gained ownership of the property, they can do as they please, including selling it to an unsuspecting buyer.

What Are the Signs of Home Title Theft?

If you detect any of the following activity, it could mean that your property is at risk of title theft:

  • Unfamiliar mail: You notice missing mail or receive mail addressed to someone you don’t know.
  • Credit report oddities: You notice unusual items showing up on your credit report, such as unfamiliar mortgages and lenders.
  • Unsolicited offers: Even if you haven’t put your home up for sale, you get unsolicited offers to buy it.
  • Property tax changes: Your property tax bill increases or decreases unexpectedly. 
  • Notice of foreclosure: Even if you haven’t missed any mortgage payments, you get a notice of foreclosure.

How Can You Protect Yourself From Home Title Theft?

Take these steps to safeguard your property from title theft:

  • Keep an eye on your property records: Routinely review your property records with the county recorder’s office in your area to verify that no unauthorized changes have been made.
  • Safeguard your private data: Guard your personal information carefully and don’t share it with anyone unfamiliar.
  • Beware of unsolicited offers: Be wary of unsolicited offers to purchase your property, especially if they appear too good to be true.
  • Use a title fraud alert: To make it more difficult for thieves to transfer ownership, you can consider placing a title fraud notice on your property records.
  • Understand the limitations of credit freezes: While freezing your credit is a good practice for general financial security, it’s important to note that it does not protect against home title theft. Title thieves can still forge documents and file them with county offices without triggering a credit check.
  • Stay informed: Keep up to date with the latest scams and tactics.

We Can Help

Home title theft is just one of the many financial challenges that consumers need to be aware of. Our team at Deerfield Financial Advisors is here to help you safeguard and grow your wealth so you can focus on your most worthwhile passions.

If you’re interested in learning more about strategies to address financial risks or if you have questions about your overall financial picture, I’m here to help. Feel free to reach out by calling (317) 469-2455, emailing ssteel@deerfieldfa.com, or using my online calendar to schedule a call. To get a sense of what it’s like to work with me, read what my clients have to say about their experiences.

About Susie

Susie Steel is COO, Wealth Manager, and Senior Shareholder at Deerfield Financial Advisors, a fee-only financial advisory and wealth management firm with offices in Indianapolis and Chicago. With over three decades of experience in financial planning, Susie’s approach has always been rooted in a spirit of service, treating each client as an extension of her own family. She simplifies the complex for clients, with the goal of creating a calm, trusting, and nurturing environment. Her unwavering commitment to the principle of “To whom much is given, much will be required” serves as the driving force behind her dedication, diligence, and empathy. 

Susie obtained a business management degree from Ball State University, holds the CERTIFIED FINANCIAL PLANNER® designation, and held the Accredited Estate Planner (AEP®) designation from the National Association of Estate Planners & Councils (NAEPC) from 2013 to 2018. Susie is actively involved with an extensive list of professional organizations, including NAPFA (The National Association of Personal Financial Advisors), a premier association of fee-only financial advisors, and has served on multiple boards, committees, and councils. Her consistent recognition as one of Indianapolis Monthly’s “Five Star Wealth Managers” for the past decade attests to her outstanding accomplishments (2009-2023).

Outside the professional realm, Susie has contributed to her community through numerous efforts including her involvement in the Financial Center First Credit Union (FCFCU), the Indianapolis Children’s Museum Planned Giving Council, the Kiwanis Club of Northwest Indianapolis, and Junior Achievement. She mentors women through the CFP® Board’s “WIN-to-WIN” program, embodies the spirit of Rotary Club of Carmel, advocates for Indiana Canine Assistant Network (ICAN), and actively serves on the board of the Mary Rigg Neighborhood Center (MRNC).

Susie and her husband, Kevin, reside in Carmel, Indiana, where they raised their three children. Outside the office, her focus centers around family, spirituality, and fostering meaningful connections. Embracing the concept of the body as a temple, her personal growth is nurtured through practices like strength training, yoga, and meditation. In her leisure time, she enjoys strolls with her dog, Lulu, and indulges in movies, podcasts, books, and the theater. To learn more about Susie, connect with her on LinkedIn.

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