Greg's Corner

Title Theft Scam Hits Homeowners for Millions

By Greg Collier

Homeowners across the United States are being warned about a growing form of real estate fraud involving quitclaim deeds. While a recent report from the FBI in Boston focuses on scams in New Hampshire, this type of crime is not limited to New England. It has the potential to impact property owners in every state.

A quitclaim deed is a legal instrument that allows someone to transfer their interest in a property to another party. It does not guarantee a clear title and can be executed with minimal scrutiny. That makes it an attractive target for criminals who forge documents to sell a home, secure a mortgage, or rent the property without the owner’s knowledge.

According to federal investigators, more than $4 million was stolen from New Hampshire homeowners between 2019 and 2023 through forged deed scams. Over 200 individuals were victimized during that period. Many of the targeted properties were vacant homes, vacation houses, or parcels of land owned by people living in other states. These types of properties are easier for scammers to exploit without attracting attention.

The fraudsters often forge both deed documents and personal identification to take advantage of remote real estate closings. They use public records to identify potential properties and sometimes work with real estate agents who are unaware that they are dealing with an impersonator. Victims frequently discover the fraud only after a fake sale or lease has already taken place.

In some cases, the perpetrators manipulate elderly relatives into transferring ownership, often by taking advantage of confusion about legal rights and obligations. While these scenarios commonly involve unoccupied properties, any home can be at risk. Victims of what is also known as home title theft are often forced into lengthy and expensive legal battles to regain their rightful ownership.

Many homeowners are unaware of how to report title theft or feel too embarrassed to come forward, further complicating recovery efforts.

Experts suggest several protective measures. A homeowner’s policy of title insurance can provide post-purchase protection and help resolve fraudulent title claims. Some counties now offer notification services that alert homeowners if a new document is filed in their name. Paid monitoring services can provide similar alerts. Regularly checking on your property or asking a trusted neighbor to keep an eye on vacant homes can also help prevent fraud.

It is important to stay informed and vigilant. While quitclaim deed scams may not be as well known as other forms of financial fraud, the consequences can be devastating. Homeowners should act now to protect their property and report any suspicious activity to local law enforcement or the FBI.