Why pay for something when you can get it free?
Have you seen or heard the many ads for title theft services on TV, social media, and talk radio? “Title protection” companies are aggressively claiming that title theft is “sweeping the nation” and is “one of the fastest-growing crimes” in America. These misleading and persistent ads urgently warn of a scam called home title theft.
While title theft is a real crime, it is very rare. Criminals don’t get away with actually stealing your home. So why all the deceptive ads? Because the companies that offer title monitoring services charge $200 a year or more. For an additional fee, they offer to help victims recover losses if their property is targeted.
The Truth
It’s true that anyone can claim to own your property. Just like anyone can lay claim to the Brooklyn Bridge. But can someone really steal the title to your home right out from under you? If you believe the commercials from these “title protection” companies, you may think so. Their headlines are shocking and sensational.
But they are wrong.
A criminal can fraudulently claim ownership of someone else’s home. They would do this by filing a phony deed with a county government. The purpose would be to con a lender into giving them a loan against the property or to try to sell the property. Actually stealing a home like this is more difficult than it sounds. Deeds must be notarized and filed in county records. The most common targets of home scams like these are vacant properties.
A forged or fraudulently filed deed is not legally valid. If it happens, the true owner must contact their county clerk at the property records office. They will advise them on filing a notice affidavit with the county court to correct the fraud. But dealing with it and getting it corrected can be stressful and time-consuming. The financial and emotional trauma is almost as bad as identity theft.
Is Title Theft Rampant?
Wire fraud, identity theft, and phishing scams are much bigger problems than title crimes. The FBI groups all real estate and rental crimes together in their statistics. Title theft cases are a very small percentage of real estate-related crimes.
Mortgage fraud is a real estate-related crime and one of the biggest white-collar crimes in the United States. Mortgage fraud involves deceiving a lender to obtain a loan. Title theft is filing fraudulent documents with government authorities to claim ownership of a property.
The Free Fix
Thanks to the melodramatic commercials, many local governments have taken steps to help protect against title theft. Most counties in North Texas offer free versions of title monitoring and notification services to their residents. They notify the property owner if any paperwork is filed on their property. I know it works because I received notification from Dallas County when I refinanced my home.
None of the paid or free title monitoring services will stop or prevent someone from filing a fraudulent deed. All they do is notify you so you can deal with it. To sign up for this free service in your county, just search “free property fraud alert” and the county name.
Here are a few links:
Dallas County: https://dallas.tx.publicsearch.us/property-alert
Tarrant County: https://www.propertyfraudalert.com/TXTarrant
Collin County: https://www.propertyfraudalert.com/TXCollin
Homeowners should be skeptical when it comes to title fraud. But they should be most skeptical of these companies looking to sell them “title protection” services.
