Home Title Theft: Understand the Threat and How to Protect Your Home

<p>Home Title Theft: Understand the Threat and How to Protect Your Home</p>

Imagine discovering that your home has been sold — without your knowledge. Home title theft is a real threat that could result in foreclosure and legal battles. Help protect your home by understanding how home title theft works and taking proactive steps to prevent it.

What Is Home Title Theft?

Home title theft (also known as title fraud or deed fraud) occurs when criminals use forged documents to fraudulently transfer ownership of a property to themselves. This crime happens silently in public records — often without the owner realizing it, until it's too late.

Once fraudsters have "ownership" on paper, they can:

  • Sell the property to unsuspecting buyers.
  • Take out mortgages or home equity loans.
  • Rent the home and collect income.
  • Disappear with the money, leaving the owner with the aftermath.

How Home Title Theft Works

Step 1:
Identity Theft: Fraudsters steal a homeowner’s personal information through data breaches, phishing emails, stolen mail, malware, or dark web purchases.

Step 2:
Forge Documents: Using the stolen information, they create fraudulent property documents — often a quitclaim deed — and forge the owner’s signature.

Step 3:
File With County Recorder: They submit the forged documents to the county recorder's office. Once filed in public records, the fraudster becomes the "legal owner" on paper.

Who's Most at Risk?

  • Seniors who may miss warning signs
  • Owners of vacation homes or rental properties
  • Recently deceased homeowners with estates
  • Longtime homeowners with high equity and low or no mortgages
  • Previous victims of identity theft or data breaches

Warning Signs

Watch for these red flags of home title theft:

  • Unexpected bills, loan statements, or foreclosure notices
  • Property-related mail about sales or transfers you didn't authorize
  • Tax or utility bills in someone else's name
  • Surprise tenants or buyers at your door
  • Unfamiliar mortgages or credit inquiries on your credit report
  • County notifications about documents you didn't file

How to Help Protect Yourself

Secure Your Personal Information and Documents

  • Shred sensitive documents before discarding, and store original deeds in a fireproof safe.
  • Never share one-time passcodes, PINs, passwords, Social Security number, date of birth, driver’s license number, or other confidential information with unverified contacts.
  • Verify the legitimacy of unexpected messages or requests by directly contacting the person or organization through a known phone number or channel.
  • Create strong passwords with 15 or more characters and use a mix of upper- and lower-case letters, numbers, and symbols, and use multi-factor authentication whenever possible.

 

Monitor Your Credit Reports and Property Records

  • Check for unfamiliar mortgages or home equity lines of credit on your credit report.
  • Sign up for a credit monitoring service to track your credit report and receive alerts.
  • Sign up for free county property fraud alerts — search "[Your County] Property Fraud Alert" to enroll.
  • Check your county recorder's website regularly for unauthorized filings, and review property records at least quarterly.

 

Consider Owner's Title Insurance

Owner's title insurance is a one-time purchase that protects your legal ownership rights. Depending on the specific policy terms and conditions, coverage may include:

  • Legal fees if someone fraudulently claims ownership
  • Financial losses from forgery or identity theft
  • Defense against invalid liens or claims

What to Do If You Suspect Fraud

Complete these steps immediately:
 

  1. Contact your county recorder’s office or registrar of deeds.
    Verify recent filings and request copies of suspicious documents.
  2. Contact your banks.
    If you’re a KeyBank client, report fraud in the online banking Security Center, by calling our Fraud Client Service Center at 1-800-433-0124 (dial 711 for TTY/TRS), or by visiting a KeyBank branch.
  3. File a police report.
    This will establish a legal record of the suspected fraud.
  4. Alert the three major credit bureaus.
    Get a copy of your credit report and place fraud alerts and a credit freeze on your account: Equifax: 1-800-685-1111, Experian: 1-888-397-3742, TransUnion: 1-800-909-9972.
  5. File a report with the Federal Trade Commission (FTC).
    File online at IdentityTheft.gov or call 1-877-438-4338.
  6. Contact a real estate attorney.
    Legal help is often necessary to resolve title disputes.
  7. Notify your title insurance company.
    File a claim if you have coverage.

Key’s Commitment to Your Security

Key is committed to providing educational resources about fraud, including the latest information on emerging scams and preventative strategies. For more information, visit key.com/fraud.

This material is for general educational purposes only. KeyBank makes no representation or warranty, express or implied, as to the accuracy, reliability, or completeness of such information and disclaims any and all liability for any direct, indirect, incidental, consequential, or other losses arising from or related to its use. Nothing herein constitutes an offer, solicitation, recommendation, or advice (including financial, accounting, legal, or tax advice). Consult appropriate professionals for your specific circumstances.