Hey there, Legal Tea Listeners –This is your host, Jenny Rozelle. Welcome back for another episode today! Today is a “current trends” topic where we talk about things going on currently that are relevant and pertinent to my estate and elder law world, and/or maybe things I’ve seen on the news or stumbled across on social media. Well, on today’s “current trends” episode, we’re going to talk about something that my law firm and I keep getting asked about and that is something called “deed theft” or “title theft.” You may have seen commercials on TV or ads online advertising something like “protect your house” or “protect the title of your house” – and it’s essentially like glorified insurance that they are trying to sell you. I think these commercials and ads are starting … are jarring … to people, which is why they ask us about it. So, today’s episode is on that and we’re going to talk about what it is first, then talk about … well, is it really happening? And lastly, I’ll end with some of my personal and professional thoughts about it.
First, what is deed theft or title theft?
It’s kind of exactly what it sounds like – it’s where someone illegally obtains the title or deed to a property that they do not rightfully own. Most often, it happens when someone forges the property’s owner’s signature on a deed transfer document and transfers the property to the fraudster. Now, the ultimate goal of the fraudster is to gain legal title or legal ownership of the property that they do not actually have the right to; that way, they can either sell it OR they can use it as collateral for a loan OR they can open a home equity line of credit (HELOC) OR they can refinance the mortgage to cash out the equity. Insanely and terrifyingly, the fraudster can do a lot clearly.
So yeah, “deed theft” is a terrifying thought, right? As I always tell people, scammers are smarter than people give them credit for – they know how to squirm their way through society and make out like a bandit! Sadly… WHEN deed theft does happen, it can be very difficult for victims to detect because the fraudsters knows what they’re doing … so it can take significant time and legal effort for the true owner to reclaim their property.
Second, is this really happening out here?
It may be because I’m a lawyer and can’t answer anything with a short “yes” or “no” – because you know what, a lawyer’s favorite answer to every question is “it depends.” So, I guess the short answer would be YES it is happening, but my longer answer goes a little something like this… I think there’s a lot of fear-based marketing going on, too. Actually, in preparation for this episode, I did some research on this whole “deed theft” topic and one of the articles I found was on Kiplinger and the subtitle of the article said, “Avoid deed theft with these free steps. You don’t need to pay a company to safeguard your home title.” That’s what I mean – I think a lot of these commercials and ads are preying on people being terrified of this.
Interestingly, the Kiplinger article states, “Have you seen scary ads for deed theft or home title fraud protection. They often claim that this type of crime … is soaring. But there's no clear evidence that this is true. Nor is there a good reason to shell out for a service that protects your home's title since you can do much or all of this monitoring on your own for free.” They continue by saying exactly what I just was blabbing about that, “Deed theft is a real issue. Is it a growing problem? That’s hard to determine; the FBI collects broad data on real estate fraud without reporting specifically on the type of fraud.”
So, as I said earlier, it’s happened and is happening, but simultaneously the scary ads, jarring commercials, etc. are perhaps pouring gasoline on to the fire to make it seem bigger than what it is. Nonetheless, since it has happened and continues to happen, let’s shift to my general thoughts about the topic, which include some things that you can do to prevent “deed theft” from happening to you.
Lastly, my general thoughts about deed theft…
Is this something that you need to be losing sleep over? I’d say probably not. It’s not dramatically different than someone stealing your identity or stealing your wallet. Is it an absolute pain in the butt to deal with and recover from? Yes. Of course. Though, all of these acts are wrong. Or, with deed theft, it’s fraud. So, there is recourse too. I doubt you’re laying awake at night concerned about if someone steals your wallet tomorrow … or thinking “What if tomorrow is the day that someone steals my identity?” I’d say most people don’t think that deeply about something to cause them to lose sleep, become stressed, etc. Is it concerning, though? Well, of course.
However, with all of these things, there are things that CAN be done to protect you and your home – and this piece I’m going to shift to is inspired by that Kiplinger article I referenced earlier, which shares four things that you can do that does NOT involve paying a company (which is what those scary ads and commercials are wanting you to do).
1. First, pay close attention to your mail and bills that are coming in. As the Kiplinger article states, “Keep a close eye out for mortgage, tax, and [utility] bills. Sometimes, thieves change the address of bills to hide their crime, giving them more time to profit from the property.” That’s a great tip! They go on to say, too, that track WHAT bills you normally get and CONFIRM you keep receiving the bills. In the event you randomly stop getting a bill, that may be a sign that something is wrong.
2. Second, pay close attention to your property record. Property ownership, contrary to what many think, is actually public record. As the article states, “Anyone can check local registries or the county recorder’s office for land records and property deeds online in the United States.” I’m super familiar with knowing how to look up property ownership up because what I do as an estate and elder law attorney – usually property ownership can be found through one of the county offices like the recorder or treasurer (which the latter is who usually send property tax statements). So, if you can dig and find “how” to keep an eye on your property ownership through the county offices, that is this second tip!
3. Third, it is recommended that you keep a close eye on your credit reports. As Kiplinger’s article states, “Most people only look at their credit reports when they’re applying for a mortgage or loan. However, … you should be more vigilant.” What they mean is keeping a close eye on what kind of debts show up on reports – and are they legitimate? Are the balances correct? Kiplinger mentions the three major credit report agencies are Equifax, Experian, and TransUnion, who all offer a free credit report through AnnualCreditReport.com. That’s great to know!
4. Fourth, the final tip involves checking to see if you have a title insurance policy. Kiplinger states, “When you buy a house or refinance, you can purchase enhanced title insurance through the American Land Title Association, … [which] ensures against impersonation or forgery.” So, it may not be a bad idea to consider if you buy or refinance any time soon … to consider this enhanced title insurance option, especially if this deed theft thing is very worrisome to you.
You know, if this does not feel like enough, I’m sure those companies that are selling kind of like insurance for your deed and title are legitimate. As the Kiplinger article mentions, you COULD pay one of these third party companies, if you want. The company that they specifically mention is called Home Title Lock, which claims they will monitor your home’s deed and title 24/7 to prevent deed theft. You know, it can probably be compared to paying for a service to protect and monitor your identity from getting stolen. Can you pay for a service like that? Sure can. If that helps you sleep better at night, then do it to it, my friend. Though, before you jump straight to something like that, at least consider doing the four things I just discussed (from the Kiplinger article) and see if that makes you feel comfortable enough. If so, you’ll save yourself some money. But, at the end of the day, we have to do whatever that is not only going to make us feel secure, protected, and safe. It’s a delicate balance, of course, and only you are going to know what makes sense for you and what you can afford.
Another thing to know that people can do to protect themselves is that many, many county offices offer a “notification” service – sometimes, they are free. Sometimes, they are not, but the fee is typically nominal when it’s not free. So, if something is recorded in the county records for your property, you’ll be notified – so that will be a super quick “catch” if someone was up to some funny business. From my understanding, these are often ran by county offices and not like a national service, so if this is something you’d be interested in, perhaps call your local recorder’s office and check to see if they offer something like it.
Now, if “deed theft” is something that actually happens to you, you should absolutely involve law enforcement to report it and likely seek legal advice, too. It’s unfortunately probably going to require a lawyer to get involved to “make things right” with the property record AND if there’s any available recourse against the fraudster, they can help you with that too. All of that seems less than ideal (and it is!), so that’s why I wanted to do this episode to help and get some information “out there” about things that you can do proactively (and even reactively) if deed theft happens to you or someone you know. With this topic becoming more popular, whether it’s warranted or not, feel free to pass this episode along to anyone that you think would benefit from hearing about deed theft and things to do to avoid it happening to you or them!
Okay, let’s wrap this episode up, shall we? Next week, we’re back to the “celebrity estate planning” type of episode – and during those types of episodes, we dive into a celebrity or “big name” person that has passed away and how their estate looked from an estate planning perspective. Next week’s episode is about the very famous … Joan Rivers. So, tune in to that next week, Legal Tea Listeners, talk to you then and stay well!
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