Home Title Fraud Information and Prevention

Home title fraud is a type of real estate scam, that may cause a property owner to unknowingly lose the title to their property.

Scammers have various ways to use your home’s title to commit fraud, including:

• using your home to refinance or to take out new loans, like a second mortgage, or a home equity loan
• illegally selling your house
• using your home in a rental scam

Once in the hands of scammers, you no longer technically own your home - even if you continue to make your mortgage payments.

Who is at risk?

While fraud can happen to anyone, home title fraud tends to occur more often among the following groups:

• senior citizens
• people who own a vacation home, or rental property
• previous victims of identity theft
• homeowners who have properties that are paid in full and no longer have a mortgage

Signs of Potential Fraud

Home title fraud can be difficult to discover until it is too late. But there are some signs you can look out for that may indicate home title theft being attempted, is in process, or has occurred.

• New loans: Be aware of statements for loans you don't recognize in the mail, including home equity or second mortgages.
• Foreclosure notices: Be aware if you receive communication threatening foreclosure from your lender, or other financial institutions – especially if your mortgage payment is up-to-date.
• Changes in home bills: Be aware if home-related bills stop showing up in the mail or if you spot inaccuracies in key information on the bill, including the account holder’s name.
• Automatic payments stopped: Be aware if payments suddenly stop being deducted from your bank account. Review automatic payments to your mortgage company, homeowners’ insurance, or taxes each month.
• Real estate activity: Be aware of calls from real estate agents or other suspicious real estate activity, including listings to sell or rent your house, could be indicators that your home's title has been illegally transferred.

How to Prevent Home Title Fraud

Consider these steps to help prevent home title fraud:

• Make your home appear as if someone is always home. Even if you're not in your home year-round, make it seem like someone is there all the time. Make sure your property is maintained, any packages or mail are collected promptly, and consider using timers to turn on indoor and outdoor lights.
• Check your county records. Every county keeps an official record of property documents, like the deed to your house. Contact the clerk’s office every so often to confirm everything is accurate or view the Property Fraud Alert website to sign up for notification alerts in your county. 
• Monitor your credit. Keep close tabs on your credit report with all three agencies. Look for newly opened accounts or credit inquiries, along with any missed payment. Be sure to review your credit scores regularly as an unexpected dip could be a sign that something is wrong.

How to Report Home Title Fraud

If you suspect that your home's title has been stolen, it's important to report the fraud as soon as possible.

• Contact your mortgage lender. Let your lender know as soon as you suspect home title theft. They may be able to assist you in navigating the fraud. Third Federal mortgage customers can contact us at 216-429-5428. 
• Contact any other lenders involved. If you've received bills, foreclosure notices, or any other communication from lenders you don't recognize, let that lender know fraud is suspected.
• Report fraud to the authorities. Home title fraud should be reported to the FTC as well as any appropriate offices in your county and state. Check with your state to see if any specific protocols need to be followed.
• File a police report. Home title fraud is a serious crime that may also involve identity theft. Filing a police report helps you establish a formal paper trail that may come in handy if the situation escalates.
• Alert the credit bureaus. You can freeze your credit or request a fraud alert be placed on your credit file maintained by all three credit bureaus (Experian, TransUnion and Equifax). You can also dispute anything on your report you believe has been reported in error, or as a result of fraud.

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