In order to avoid being the victim of a home title fraud scheme, you need to know how these schemes work. This can help you to see the red flags and avoid taking action that may put you in a compromising position.
There are many different types of fraud, so do not assume that the following is the only issue you may face. It is just one of the most common types of fraud, so it gives you a good place to start.
The theft of an entire home
This type of fraud generally starts with a forged deed. Someone else forges your signature on the deed to your home, making it appear that you sold it to them. They get it notarized, and they file it in the county records. The deed is inaccurate, but it appears to be above board, and it looks like they own the house.
After this, they may attempt to sell your home to a third party. This person has no idea that the deed has been falsified, and they think they are buying a home in a valid manner. The person who forged the deed then takes the money and disappears, leaving the two of you to argue about who really owns the home.
Another variation of this scheme is when someone puts your home up as collateral for a loan. They’re then given the loan, they disappear, and that lender tries to claim your home as collateral. You had nothing to do with any of this, but they say they now have the right to your house.
What can you do?
If you find yourself in a situation like this, the ramifications are incredibly serious, and you must protect your home. Take the time to look into all of the legal options you have.