Don’t Get Scammed Over the Holidays – Use Common Sense to Protect Against Losing Your Home!
You may have heard on the news or read in the paper recently of a rise in deed fraud. Deed fraud occurs when someone fraudulently transfers ownership of someone else’s real property into the fraudster’s name without the owner’s consent. In a recent Dayton Daily News article, the Montgomery County recorder estimated that what used to be one or two complaint per month has increased to two to three complaints per week.
An ownership transfer occurs when a deed is signed by the owner, notarized by a notary and recorded. A fraudster can easily obtain the necessary information to prepare a deed, forge the owner’s signature and get a negligent or complicit notary to notarize the signature. This is the most common form of deed fraud. The second form is when the crook deceives the owner and convinces him or her to sign a deed by promising to pay overdue property taxes or refinance a mortgage.
If the property ownership is stolen, it can result in an unauthorized sale by the crook. It can also result in the crook taking out a loan and mortgage on the property, resulting in a large lien on the property and possible foreclosure. Even if the theft is discovered before a sale, it can result in legal issues, damage to the homeowner’s credit or damage to property itself. It is interesting to note that a study by one title company estimated that ninety percent of deed fraud was committed by family members or friends of the victim and ten percent involved criminal activity.
Fraud Alert Notification System is a Free Service To Monitor Improper Deed Transfers
As reported by the Dayton Daily News, the Montgomery County Recorder’s office operates a Fraud Alert Notification System (FAN) whereby a homeowner can elect to receive an email, a letter or both whenever a deed, mortgage or lien is filed. One can enroll on the Montgomery County recorder website. Click here to be connected to this website. While I would not necessary recommend signing up for a monitoring service which involves paying a fee, this is a nice free service offered by the county.
Using common sense and following up on any suspicious activity can go a long way towards avoiding deed fraud or remedying the situation before it gets much worse.
Remain Vigilant to Avoid Being a Victim of Deed Fraud!
Be smart, careful and don’t get scammed! If you have any questions or need more information about deed fraud, you should contact your attorney or if you think you have become a victim, contact the county prosecutor’s office. We can’t be too vigilant especially during the holidays!
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Joseph Balmer manages the Probate, Trust and Estate Administration department at Dayton, Ohio, law firm, Holzfaster, Cecil, McKnight & Mues, and has been certified by the Ohio State Bar Association as a specialist in Estate Planning, Trust and Probate Law since 2006.