Protect Yourself From Deed Theft

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Although not common, deed theft can have disastrous consequences for its victims. It can ruin your credit, or worse, you'll lose your home. It may not be prolific, but it does happen to some homeowners.

But what exactly is deed theft? How do criminals steal your home title, and how can you prevent it? There are several signs that someone is trying to or has stolen your home’s deed.

What Is Deed Theft?

Deed theft is another form of identity theft. It occurs when someone steals your identity and transfers your house title to their name. Identity theft is necessary because the criminal needs to make the forged home deed look legitimate.

Ways Home Title Theft Occurs

Your home’s value draws the attention of thieves. It’s a pile of money just waiting to be stolen. The biggest reason a home title is stolen is the owner not being vigilant with their finances.

• Taking Advantage of Financial Hardship

A criminal steals information and realizes that the victim is experiencing financial hardship. The victim doesn’t have the credit to steal.

So, the criminal offers the victim a refinancing opportunity or home equity line of credit (HELOC), which, under normal circumstances, they wouldn’t have the credit to obtain.

The homeowner then unknowingly signs paperwork making the criminal the home’s new owner.

• Phishing and Malware

Phishing is when a criminal pretends to be a legitimate company to obtain the victim’s personal information. They often do this through an email or letter. It may look like it’s from a bank or government agency. The fraudster is given by pretending to be someone they’re not.

Malware is software that is placed on your computer. This may happen if you’re tricked into downloading a file from an email or website. Once this occurs, they access your personal information.

• Unsecured Wi-Fi and Data Breaches

If you look at your confidential information in a public area, using unsecured Wi-Fi, and the criminal is nearby, they can access your information. This puts you at risk for home title theft.

Data breaches occur when hackers enter a company’s or individual’s database.

• Mail Theft

A thief will go through your mailbox to obtain your personal information. They’re looking for birthdays, Social Security numbers, and other information. Ensure you check your mail often and always have the post office hold your mail if you go on vacation or a trip.

• Losing Important Information

Keep important documents in a safe place. This includes your Social Security card. You risk identity and deed theft if these documents fall into the wrong hands.

• Protecting Yourself Against Home Deed Theft

To protect yourself against home title theft, always keep track of what you receive in the mail. This could be a warning sign if you start receiving bills for items you didn’t purchase or information from a strange financial institution.

The earlier you can catch it the less damage it will do to your finances and credit.

• Monitor Credit Report

Constantly monitor your credit report. Look for any newly opened accounts. If you didn’t take them out, and they are home loans, you may have a problem.

You should check your credit report every six months.

• Report Suspicious Activity

Keep an eye on who’s hanging around your property. Suspicious activity or people should be reported to the police. Install a security system to deter criminals from stealing important papers like deeds.

• Homeowners Title Insurance

Purchase owner’s title insurance. This can protect you from liens or claims filed against your property while you are the owner.

Be careful that you have the right insurance. There are also title protection services, but these services are rife with fraud. So, research any title protection service firm that interests you.

• Lock Credit Report

It’s also a good practice to lock your credit report if you’re not in the market for a loan. Once you do this, no one will be able to use your credit. Just go to the credit bureaus’ sites, and they have the option to lock your credit.

• Use Common Sense

Finally, use common sense. If someone you don’t know emails you an offer with a downloadable document, stop; it’s probably malware.

Be suspicious of organizations contacting you who need your information. Keep in mind, the IRS will never call or email you, and the same goes for other government agencies or businesses.

If you receive a text offering you a low-interest loan, delete it. Legitimate financial institutions will use that practice.

Fraudulent Refinance to Steal Money

Fraudulent refinance is when a criminal steals your identity and withdraws your home’s equity. This will leave you with another mortgage to pay. Although they’re not technically taking your deed, they steal money based on your home.

With your stolen identity, they access your equity with a HELOC. By drawing the money from the HELOC, they create a large amount of debt for which you’re responsible.

How to Report Stolen Deed

Report a stolen deed by calling your mortgage lender and submitting a claim on the Federal Trade Commission website. If you don’t have a mortgage company, report it to the FTC.

Contact the credit bureaus and explain the situation. If you know where fraudulent loans were taken out on your home, contact those institutions.

And, finally, contact the police.

The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.