Home Title Theft: What It Is and How to Protect Yourself

Home title theft is a type of real estate fraud. A home title is a document that confirms your ownership and protects your rights to your property. Recorded with your county’s office, it’s intended to keep your claim secure — but it can also be an appealing target for criminals who forge documents and steal ownership. According to an FBI Internet Crime Report, over 9,500 people in the U.S. fell victim to real estate fraud in 2023, resulting in more than $145 million in losses.

You can protect yourself from home title theft by staying alert and recognizing the early warning signs. Watch out for unexpected loan statements, unfamiliar credit activity or missing property tax bills and act swiftly if you suspect any fraudulent activity to protect your home.

Home title theft — also known as deed theft or title fraud — occurs when a fraudster illegally transfers ownership of a property by using falsified documents or other deceptive methods. This crime allows criminals to take control of a home's title and use it to refinance, sell or secure loans against the property without the owner’s knowledge, often resulting in severe financial and legal repercussions.

Common methods of home title theft include identity theft, forged documents and fraudulent notary use. Criminals may impersonate the rightful owner to obtain sensitive information or create fake IDs to alter property records. They might forge signatures on deeds and enlist unethical notaries to validate these documents, making it appear as though they are legitimate property owners.

Once thieves take control of your home’s title, they can exploit it in several damaging ways. Here are some common tactics frauds use:

• Use your home’s title as collateral to secure loans or lines of credit.
• Accumulate large debts in your name, depleting your home equity.
• Sell your property without your knowledge, leaving you unaware until it’s too late.
• Cause severe financial disruption, leading to foreclosure, lengthy legal battles and the potential loss of both your home and equity.

Home title thieves often target seniors, vacant property owners and high-equity homeowners due to their vulnerabilities:

• Elderly Homeowners: Established homeowners who have settled into a financial pattern may not notice changes in property records or credit reports.
• Vacant Property Owners: Homes left unoccupied are less monitored, making it easier for fraud to go undetected.
• High-Equity Homeowners: Those with substantial equity, especially without a mortgage, are easy targets for criminals looking to cash out quickly.

Whether you're a first-time homebuyer or a long-term homeowner, monitor your property and financial information closely and strengthen your cybersecurity practices to guard against home title theft. Take these preventive measures, including obtaining the right title insurance, to prevent and respond quickly to any signs of fraud.

Check your property records regularly to identify unauthorized changes before they become serious issues. Sign up for local property alert services that notify you of any updates or changes to your property title.

If you prefer to check the records yourself, you can usually do so by accessing your county’s website. To get started, follow these steps:

1. Visit your county recorder's or assessor’s website.
2. Search for your property using your parcel number or property address.
3. Review all recorded documents to confirm no unexpected changes.
4. If you notice any discrepancies, contact the county office immediately.

Keep a close eye on your credit reports to detect any unusual activity, such as new accounts, unauthorized inquiries or sudden drops in your credit score. Credit monitoring services like Aura provide real-time alerts for changes to your credit profile.

You can also obtain free credit reports from Equifax, Experian and TransUnion annually and scrutinize them for unfamiliar loans or accounts. Identify the warning signs early on to dispute any fraudulent activity promptly and reduce the risk of further damage.

Pay attention to all property-related mail, such as bills, tax statements and notices, as missing documents or receiving unfamiliar loan paperwork could signal fraud. If you notice any irregularities, such as a sudden change in the amount owned or documents from unknown lenders, it could indicate authorized activity on your property title. Contact your lender or service provider immediately to verify any questionable communications and take steps to secure your property records.

Create strong, unique passwords for each account and enable two-factor authentication to protect against unauthorized access to your financial records that may put your property in danger. Be cautious of phishing emails that attempt to trick you into revealing personal information, and always verify the sender's legitimacy before clicking on links or sharing sensitive details. Keep your security software up to date and regularly install updates and patches to protect your devices from new cyber threats and prevent criminals from breaching your personal data.

Understand the difference between lender’s and owner’s title insurance. While the lender’s policy secures the lender’s investment, an owner’s title insurance policy defends you from title defects like forgery or fraudulent claims. Carefully review the terms of your policy and consult with your insurance agent to identify any gaps in coverage and determine if additional protection is needed.

Choose a reputable insurance provider and discuss the specific risks associated with your property to ensure you have comprehensive coverage against title theft. Proper title insurance can shield you from significant financial loss in the event of a title dispute or fraudulent claim.

Get answers to common questions about home title theft, including how to recognize warning signs, protect your property and take action if you suspect fraud.