Quick Answer
Homeowners of America can protect themselves from property and title scams by understanding how these crimes work, knowing who is most vulnerable, and monitoring property records for unauthorized changes. Federal agencies like the FBI warn that deed and title fraud are rising nationwide, making early detection and awareness essential for preventing financial and legal damage.
Table of Contents
Homeowners of America are increasingly being targeted by property and title scammers who exploit public records, forged documents, and stolen identities to illegally transfer ownership or take out loans against homes. According to the Federal Bureau of Investigation, quitclaim deed fraud and other real estate scams are on the rise across the United States, with thousands of complaints reported annually to the FBI’s Internet Crime Complaint Center (IC3). These crimes often go unnoticed until homeowners receive foreclosure notices, discover unexpected liens, or attempt to sell or refinance their property. Seniors, absentee owners, and homeowners with significant equity are especially vulnerable, making proactive monitoring and education critical tools for prevention.
Types of Vulnerable Homeowners
High Equity, No Mortgage Homes
When you own a high equity, no mortgage home, it’s like having money in the bank. It’s less likely thieves will go after vulnerable homeowners that have minimal equity, but they will actively pursue someone who owns their home free and clear, especially if your home is more valuable. A thief can steal your identity, use this information to forge a deed so they appear to be the property owner. They can then cash out the equity or refinance your home, either way taking the cash and running – all without you knowing it until it’s too late.
Non-Owner Occupied Homes
Essentially a non-owner occupied home is a property whereby the person who financed it will not be living at the residence. In theory, they could own multiple homes where because of other obligations, they don’t pay as much attention to the properties as they should. Thieves can again generate and register forged documents, and then take possession of the property without your consent or knowledge.
Vacation Homes
Scammers will target vulnerable homeowners through their vacation rental properties. We all know to watch out for emails with poor English skills or strange email addresses, or when someone wants to rent your vacation home and accidentally sends too much money and requests a refund – these are all signs of scams we’ve become accustomed to. But, if you don’t visit your vacation home regularly, you could find out that your home was advertised for rent, or even possibly for sale, without your knowledge. See Rental Homes, next.
Rental Homes
Owners of rental homes can be scammed when their properties are listed fraudulently on real estate rental sites when they’re not available for rent. Crooks will pose as the owner and take money from the new renter including the first/last month’s rent, plus a damage deposit, only for the excited renter to find out later they were scammed and you need to deal with the issue as the actual owner of the property. According to the Federal Trade Commission, scammers can also hijack your legitimate rental listing and proceed to do the same thing to as many people as they can before getting caught.
Investment Properties
As someone may own multiple investment properties, again their attention may be turned elsewhere making them instantly vulnerable to property changes they may not be aware of until it’s too late. Forging documents, registering them, and taking possession can occur within a matter of days.
Foreclosure Properties
Vulnerable homeowners may have homes in foreclosure. A classic fraud case happened in Florida when a criminal forged a series of quit claim deeds and then took possession of the non-occupied homes, posed as a realtor, and proceeded to rent them out. Even accidental foreclosures can occur through bank errors or when a couple divorces and one of them defaults on a loan that’s attached to the mortgage.
Senior Homeowners
It’s an unfortunate fact, but seniors are vulnerable homeowners as many have high-equity, no mortgage homes. Besides that, many are too proud or may even be unable to ask family or friends for advice before falling victim to a homeowner scam that can come in the form of:
- a fraudulent reverse mortgage
- being offered a low ball sale for cash
- giving out personal information over the phone or by email which can then lead to identity theft and title fraud
1st-Time Homeowners
A very common real estate scam takes place when fraudsters gain access to information about a real estate transaction in progress, spoofing the email posing as either the realtor, banker, or lawyer while providing detailed instructions on how to wire the closing funds to them. You wire the funds and now you’ve just lost both the home of your dreams and your money.
Deployed Military Homeowners
Because you’ll be absent from your home for potentially long periods of time, thieves will target vulnerable homeowners through their VA loans. Unfortunately, it’s the same scenario playing out whereby your military identity is stolen, false documents are produced and then filed, and your home is lost.
International Homeowners
If you own a home abroad, many factors can contribute to being vulnerable homeowners including being absentee owners and even possible language barriers. Your home could easily be offered for rent or sale without you knowing it until it’s too late.
Multiple Homeowners
Even if you’re an absolute stickler for detail, a culprit could target any one of your properties without your knowledge. A quit claim deed could be filed or identity theft could occur meaning all of your hard-earned properties could be stolen right out from underneath you.
ADA, Disabled Homeowners
Unfortunately, people that fall under the Americans with Disabilities Act are vulnerable homeowners. Whether it’s a physical disability that would preclude them from signing or filing paperwork in person, or a challenging situation for them otherwise, crooks will find ways to take advantage of their situations. They’ll even claim to be representatives of a bank, a government agency, or whatever it takes for them to convince a person to sign paperwork or give up their personal information.
Take Control of Your Homeownership Journey with DomiDocs®
Managing your home shouldn’t be stressful. DomiDocs® empowers homeowners with innovative technology, expert guidance, and unparalleled organization—all within a secure, cloud-based platform. From protecting your property and finances to streamlining essential tasks, our tools help you save time, reduce expenses, mitigate costly risks, and maximize your home’s value.
Explore the DomiDocs® suite of solutions:
- Homeowner Enablement Platform® – A centralized, digital hub for organizing documents, tracking home value, and managing property details effortlessly.
- HomeLock™ – Protects your home from fraud and title theft with 24/7 monitoring and instant alerts.
- TrueValueIndex® – Provides real-time insights into your home’s value to help you make informed financial decisions.
- propRtax® – Identifies potential property tax savings and ensures you’re not overpaying.
- Documenting for Disaster® – Securely stores critical homeownership documents, ensuring quick access before and after a disaster.
Join the home management revolution today and experience the confidence that comes with having everything you need in one place.
FAQ
Who Are The Most Vulnerable Homeowners In America
Certain groups face higher risk, including seniors, owners of vacant or rental properties, individuals with high home equity, and homeowners who do not regularly monitor public property records. These situations create opportunities for scammers to act without immediate detection.
What Types Of Scams Target Homeowners Of America Most Often
The most common schemes include deed fraud, title theft, identity-based mortgage fraud, and fraudulent lien filings. In many cases, criminals use forged documents to change ownership or secure loans without the homeowner’s knowledge.
Is Property And Title Fraud Increasing
Yes. The Federal Bureau of Investigation has issued warnings indicating that real estate and deed fraud are increasing across the United States, with rising numbers of complaints submitted to the Internet Crime Complaint Center involving significant financial losses.
Does Checking Property Records Help Prevent Fraud
Regularly reviewing public property records can help homeowners detect unauthorized changes early. However, many homeowners are unaware when records change unless they actively monitor records or receive alerts.
Does Title Insurance Protect Homeowners After Purchase
Title insurance primarily protects against issues that existed before or during the home purchase. It generally does not monitor or prevent fraudulent activity that occurs after ownership is established.
What Are Early Warning Signs Of Property Fraud
Unexpected mail from lenders, unfamiliar loan statements, foreclosure notices, changes to tax records, or difficulty selling or refinancing a property can all indicate possible fraud and should be investigated promptly.
What Should Homeowners Do If They Suspect Fraud
Homeowners should contact their county recorder or clerk’s office to review property records, report the issue to the FBI’s Internet Crime Complaint Center, notify lenders and financial institutions, and document all findings as quickly as possible.