New Florida Law Targets Home Title Fraud
How can someone steal a home without stealing a home? The answer is: Home Title Fraud. There are a growing number of cases involving criminals changing property titles, even if someone already lives in the home. A recent LexisNexis study found that mortgage fraud scams were up 51% last year. Often, the victims aren’t notified about changes to their title, so they aren’t aware that someone has stolen the title. This is set to change.
One individual served 12 years in federal prison after he stole titles and used fake identities to take mortgages out on other people’s property in Florida and other states. He stole tens of millions of dollars from more than 100 victims before anyone caught up with him. He said, “I knew nobody was going to be notified and I knew that was difficult to find me after the crime had occurred. I believe the FBI said it’s one of the fastest-growing property crimes out there.”
Counties in Florida are attempting to prevent this crime by offering title alert programs to homeowners. Authorities hope this will encourage even more people to sign up for these owner alerts to help combat title fraud.
What is home title fraud?
Since 2008, the FBI has been raising the alarm about home title fraud. Home title fraud is when a criminal “steals” a home by forging a deed. They then illegally transfer ownership of the home without the actual owner’s permission or knowledge. The fraudster can then sell the home or take out a loan against it without the real owner ever knowing. When the mortgage on the property is not paid, then the bank forecloses on the house.
The fraudster will first find a property they want to steal. This will be a property with a lot of equity in it. They then forge documents that transfer the ownership of the property to themselves. After the documents are filed with the proper authorities, the fraudster has legal ownership of the property. They can either sell the property to an unwitting third party or take out home equity lines of credit (HELOC) against the property without paying it back.
Other ways of effectuating the scam involve identity theft. According to the FBI, a con artist can find a vacant home, like a rental property, or a vacation home, and find out who the owner is through research. They then steal the owner’s identity, illegally transfer the title of the home into their name, and pocket the proceeds from selling the property or taking out a loan against the property.
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Source:
wcjb.com/2024/09/13/new-florida-law-attempts-curb-home-title-fraud/
