The Expert Podcast

• What is Deed Theft?
  • Deed theft occurs when scammers forge a deed transfer to claim ownership of a property.
  • This process involves reviewing public real estate records to create a fake deed and transfer ownership to a fraudulent entity.
• How Does Deed Theft Work?
  • Scammers access public records to find properties with absentee owners (no mortgage and different mailing address).
  • They create a forged deed transferring the property to a fake company, often using a signature from a previous deed.
  • These forged deeds are filed with the county recorder, who simply processes documents without verifying the authenticity of signatures.
  • Once the forged deed is filed, scammers may list the property for sale, take out a mortgage, or sell it, running off with the money.
• What Happens When You Discover Deed Theft?
  • The real property owner may start receiving notices of sale or liens they know nothing about.
  • A title search will reveal the fraudulent deed, and the property owner must take steps to undo the damage, including legal actions.
  • In some cases, the property may have been sold to an innocent third party who cannot recover the money.
• How to Prevent Deed Theft:
  • File a notice of intent or a freeze on your deed to protect against unauthorized transfers.
  • Always perform due diligence when purchasing property, including verifying the seller’s identity and using reliable escrow services.
  • Be cautious of properties with no mortgages and absentee owners, as these are prime targets for scammers.
• Real-World Example:
  • Scammers used disbarred attorneys with fake Social Security numbers and IDs to carry out a deed theft scheme.
  • Be aware: deed fraud is still ongoing, and taking preventive measures is crucial to protect your property.