The housing market is booming, but with opportunity comes risk. Mortgage deed fraud, a cunning scheme that preys on unsuspecting homeowners, is unfortunately on the rise. In this blog post, we'll shed light on this deceptive practice and equip you with the knowledge to protect yourself in 2024.
What is Mortgage Deed Fraud?
Deed fraud involves criminals using forged or stolen documents to steal the ownership rights to a property. In mortgage deed fraud, scammers target properties with mortgages, aiming to either:
Steal the equity: They take ownership, then sell the house or take out a new, fraudulent loan against the property, leaving you on the hook for the repayments.
Commit "equity skimming": They transfer ownership to themselves but leave you responsible for the mortgage payments. They then collect the rent and disappear.
How to Protect Yourself:
Be Vigilant with Paperwork: Never sign anything you don't understand completely. Be wary of unsolicited offers to "help" with your mortgage or property taxes.
Know Your Rights: Research common deed fraud scams and the steps involved in a legitimate sale or loan modification.
Verify, Verify, Verify: Before signing any documents that affect your property ownership, confirm their accuracy with your lender and a trusted attorney. Consider using a title company to ensure a clear and legal chain of title.
Monitor Your Records: Request annual reports from your mortgage lender and county recorder's office to check for any suspicious activity.
Beware of Urgent Requests: Fraudsters often create a sense of urgency to pressure you into signing documents without proper review. Take your time!
What to Do if You Suspect Fraud:
Act Immediately: If you suspect you've been a victim, contact your lender, the police, and a real estate attorney.
Gather Evidence: Collect any suspicious documents, emails, or recordings related to the fraudulent activity.
Report the Crime: File a police report and report the incident to the Federal Trade Commission (FTC).
Staying Informed:
Staying vigilant and informed is crucial. Here are some resources for further information:
Federal Trade Commission (FTC): https://consumer.ftc.gov/features/identity-theft
National Association of Realtors (NAR): https://www.nar.realtor/fraud-negligence-liability
U.S. Department of Housing and Urban Development (HUD): https://www.hud.gov/faqs/consumer
