Title fraud is a serious and growing concern that can have devastating financial and legal consequences for homeowners. It occurs when someone unlawfully transfers the ownership of a property into their name, often without the homeowner’s knowledge, using forged documents and stolen personal information. While it may sound like a rare scenario, the risks are real and worth understanding.

What Is Title Fraud?

Title fraud involves the unauthorized transfer or manipulation of a property’s title, typically through identity theft and document forgery. Once the scammer gains control of the property on paper, they may attempt to:

• Sell the home to an unsuspecting buyer

• Obtain a cash-out refinance and collect the funds

• Use the property as collateral for fraudulent loans

Victims of title fraud often discover the issue too late, after receiving foreclosure notices, discovering unexpected liens, or learning that ownership has changed hands without their consent.

How Title Fraud Happens

Most cases of title fraud begin with identity theft. Scammers may obtain sensitive personal information through phishing, stolen mail, or data breaches. They then forge a deed or other legal document and record it with the county recorder’s office, making it appear as though ownership has legally transferred.

Properties that are vacant, rented, or owned by elderly individuals are especially vulnerable, but any homeowner can be at risk.

Warning Signs to Watch For

Being aware of potential red flags can help you detect title fraud early. These warning signs may include factors like: 

• You notice unfamiliar activity or inquiries on your credit report related to your property.

• You stop receiving property tax bills or other official notices.

• You receive mail or statements related to unfamiliar mortgages.

• You discover liens or loans you did not authorize.

• You’re alerted by your local recorder’s office about changes to your property’s title.

How to Protect Yourself from Title Fraud

While title fraud cannot always be prevented, taking the following proactive steps can help reduce your risk:

1. Monitor Your Property Records

Regularly check the status of your property’s title through your local recorder’s office. Many jurisdictions offer notification services that alert property owners to any changes or filings related to their title.

2. Safeguard Personal Information

Avoid sharing sensitive details unnecessarily. Shred documents, use secure passwords, and be cautious when disclosing information online or over the phone.

3. Consider Title Monitoring Services

In addition to standard owner’s title insurance, which is designed to protect buyers against title defects, some title companies offer enhanced protection or monitoring services that track changes to your property’s title and flag potential fraud.

4. Monitor Your Credit Report

Regularly reviewing your credit report can help detect identity theft early. Any suspicious activity could be a warning sign that your personal information is being misused.

5. Consult Title or Legal Professionals

Work with a trusted title company or real estate attorney advisor if you’re concerned about your property’s title or wish to explore additional protective measures.

What to Do If You Suspect Title Fraud

If you believe your property has been targeted:

• Notify your local law enforcement and file a report.

• Contact the county recorder’s office immediately to dispute the fraudulent filing.

• Speak with a real estate attorney to determine the appropriate legal steps.

• Inform your title insurance provider if you have coverage that may apply.

• Report the incident to the Federal Trade Commission and major credit bureaus.

Protecting Your Property Starts with Awareness

Title fraud can be complex and difficult to resolve once it occurs, but taking proactive steps now can help you avoid potential loss and hardship in the future. Staying informed, securing your personal information, and monitoring your title and credit are all key components of safeguarding your property rights.