CAN SOMEONE REALLY Steal the Title to My Home?

HHave you heard all those radio/TV commercials given by reliable folks about having the title to your home stolen? There is even a person claiming he has accomplished that several times! How is that possible? They are not talking about fraudulent applications for mortgages, although that probably happens frequently. They are talking about someone who forges a deed to themselves and then tries to borrow money against the property or resell the property to a third party. Despite the frantic mode of the commercial, you do wonder if this really is as common as they lead you to believe.

There are FBI statistics about wire fraud in real estate transactions, however there is no real statistical data about "home title fraud."

There are several things to know about this type of fraud. In Texas, this kind of fraud could be enabled if an unsuspecting buyer purchases a property from someone without going through a title company. The title company closing process includes protections designed to prevent this type of fraud. Also, it is important to know that a forged deed is absolutely void and conveys nothing, however, if the forged deed has been filed in the deed records, it can create a cloud on the title to your home.

If that were to happen, a real estate attorney could prepare and file an affidavit of forgery that could be filed in the deed records to counteract the forged deed. It might be necessary to file suit against the forger to have the forged deed declared invalid and have that judgment filed in the deed records. It doesn't matter if the forger has fled far away because they can be served by publication, or an attorney can file a motion for summary judgment. Because there is no defendant fighting the case, the attorney's fees for such proceedings are usually modest. Remember that most "protection plans" do NOT cover attorney fees!

Of course, you want to prevent a forged deed before it happens and the advertisements for these title protection services make sometimes impossible claims. For instance, some claim that the monitoring service puts a "shield" around your home title. That is not accurate. All the "protection service" does is check the deed records periodi- cally to see if any instruments have been filed in the deed records with your name on it and let you know when it happens. These services may also claim that the true owner will be liable for the fraudulent mortgage payments. False - you are not liable for a fraudulently obtained mortgage in your name.

Here are preventative measures you can take which cost you nothing and should give you peace of mind:

• Lock your credit account at each of the 3 major credit reporting agencies.

• Periodically check the deed records for your home in your county.

• Be sure you get the appraisal notice each May and the property tax invoice in Nov. If not, call right away to inquire.

• If you fail to receive a utility bill, call the provider immediately.

• If you get some sort of payment book from a mortgage company that you don't recognize, contact the company immediately.

• Get a copy of your credit report periodically and check it for accuracy.

• For vacation/rental property, be sure you are getting utility/tax bills. If the property is vacant, check to make sure no one is living there.

When you purchase property, always go through a licensed title company to make sure the title to the property you are purchasing hasn't been subjected to a previous fraudulent transfer.

Adapted from an article at the Texas A&M RE Center