Imagine waking up one morning to the news that someone has “sold” your home from right under your nose. It sounds like a nightmare situation from a crime drama, but title theft (also known as title fraud or deed fraud) is a very real and growing threat to real property owners across the country. In our latest blog, we explore how title theft occurs and how to protect your home from being targeted.
What is Title Theft?
Title theft is a form of identity theft where a criminal targets a property and forges the owner's signature on a deed to transfer ownership to themselves or a third party. Criminals often target properties that are free and clear of any mortgage or liens, focusing on second homes, rental units and vacant properties. They tend to leverage stolen personal information, use fake IDs to impersonate homeowners, or even work with unethical notaries to make the transaction appear legitimate. Once they’ve gained control of your title, the criminal can not only sell the home to an unsuspecting buyer, but they can also do any of the following:
- Secure new loans against the property, such as a home equity line of credit (HELOC).
- Refinance the mortgage to cash out equity.
- Rent out the property illegally.
These situations can result in overwhelming debt, significant credit harm and even unlawful foreclosure or eviction, typically requiring months or years of costly litigation to resolve.
Real Numbers, Real Losses
According to the FBI’s 2024 IC3 Report:
- 9,359 real estate fraud complaints were filed.
- Losses totaled nearly $173.6 million.
- Seniors (age 60+) filed 1,765 complaints, accounting for $76.3 million in losses—44% of the total.
One example of these complaints occurred in Detroit, Michigan, and made national headlines. Federal prosecutors charged Zina Thomas, a 60-year-old community organizer, with stealing more than 30 homes in and around the city. How did she do it? By forging quitclaim deeds—documents used to transfer property ownership—and making it look like the homes belonged to fake entities. She then sold them to unsuspecting buyers.
Technology has made it easier than ever for sophisticated criminals to create convincing forgeries, warns David Fleck, a real estate fraud attorney in Southern California. "Twenty-five years ago, it wasn't easy to forge documents…the technology has very quickly gotten ahead of the systems we have in place to prevent this," warns Fleck. Even famous estates, like Elvis Presley’s home Graceland, have been targeted, proving that no home is immune.
How to Protect Yourself Against Title Theft
Thankfully, simply recording a document alone doesn’t make a fraudster the true legal owner; fraudulent deeds can be challenged and voided through legal action.
This is why an owner’s policy of title insurance is so important—it provides a layer of protection against title fraud. If someone forges documents or attempts to transfer ownership without your consent, your policy may help cover the costs of defending your rights and restoring your title—depending on the coverage you selected.
Other smart, low-cost ways to safeguard your property:
1. Monitor your bills. Watch for missing or new mortgage, tax or utility bills. Criminals may redirect mail to avoid detection. Unexpected bills for loans against your property or sudden changes in your mortgage payments could be warning signs for potential fraud.
2. Regularly review your property records. Track your deed status through your county recorder’s office.
3. Review your credit reports. Access free weekly reports from Equifax, Experian, and TransUnion, and look for suspicious activity.
4. Consider adding additional coverage. If you purchased an ALTA Owner’s Policy of title insurance or live in a state where the ALTA Homeowner’s Policy is not available, ask your title insurance agent about adding the following seller impersonation fraud and forgery endorsement: ALTA 49 (for new policies) or the ALTA 49.1 (for existing policies). These endorsements expand coverage for certain types of unauthorized residential property transfers resulting from forgery that occurs after the date of the policy. Learn more here.
5. Consider monitoring services. Title monitoring services are available through various providers, typically costing between $10 and $25 per month. These services alert you to changes in your property records that could indicate fraud or unauthorized activity.
6. Utilize local resources. Many counties help protect property owners by mailing copies of newly recorded deeds to the current owner of record. This can serve as an early warning system for fraudulent activity. Please check with your local county for this or a similar program, as this can be an additional resource to safeguard your property.
If you suspect fraud:
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- Notify your county recorder, your lender, if any, and your title insurance underwriter if you have an owner’s policy that covers this risk.
- Contact local law enforcement.
- Get a certified copy of the fraudulent document.
- Report the crime to your district attorney.
- Consult an attorney to confirm ownership and possibly initiate a quiet title action to legally restore your rights.
Final Thoughts
Title theft is serious, but preventable. By staying vigilant, using available tools and understanding your property rights, you can protect your most valuable asset: your home. Here at Old Republic Title, we continue to work diligently to fight these scammers by working with local and federal law enforcement agencies and implementing best practices to combat these individuals.
