What you’ll learn (TL;DR)
Some services simply monitor your property and let you know if a potentially fraudulent document is filed against your property. These monitoring services don’t protect from the actual damage fraud can cause and they offer little value since many counties offer free monitoring.
Services that claim to “lock” or “freeze” your title are ineffective because you cannot prevent filings against your property, and criminals can forge a release of the document filed to “lock” or “freeze” your title.
To protect yourself from home title theft, sign up for property alerts, monitor your credit and mail, and purchase title insurance like the First American Eagle Policy.
What is home title theft?
Home title theft, or impersonation fraud, is when a criminal forges an owner’s name on a deed or mortgage. By impersonating the owner, the criminal sells the property to someone else and steals the money from the sale or mortgages the property and steals the money from the loan. You can learn more about this fraud and read real news stories by visiting
Home Title Theft: A Hassle for Homeowners.
Attempts to Combat Home Title Theft
Because title theft is becoming more common, several companies now offer services to address this fraud.
Monitoring
Some of these services simply monitor your property and let you know if a potentially fraudulent document is filed against your property. They do not provide any protection or legal defense of your ownership rights so you’re left to clean up the mess yourself. These services offer little value since many counties offer a similar monitoring service free of charge.
Efforts to “Lock” or “Freeze” Title
Other companies go a step further and file some type of document against your property in the public records, attempting to “lock” or “freeze” your title and prevent fraud from happening in the first place. This document alerts potential buyers and lenders that a release should be obtained from the company before the property is transferred or mortgaged. A “release” just means that another document is filed that essentially states that the previous document is now removed from the title.
Unfortunately, you cannot lock or freeze title or prevent documents from being filed against a property. County clerks typically must accept and file documents as long as their requirements are met and their fees and taxes paid. Also, criminals can forge a release of any document, the same way they forge a deed or mortgage. Finally, when an owner wants to sell or refinance, they must get a release from the company that filed the document to “lock” or “freeze” their title. By that time, which could be years or decades later, the company may have gone out of business. Even if the company is still around, waiting for them to prepare and file a release could delay the sale or refinance.
Your Title Insurance Policy May Be Enough
Some title insurance policies, like the First American Eagle Policy®, already provide coverage for home title theft. If you have a covered claim for a forged deed or mortgage filed against your property, the insurer will help you clear your title. In this situation, the insurer would likely hire an attorney to file a lawsuit to remove the forgery from your title and pay for the court costs and attorneys’ fees.
What to Do to Protect Yourself from Home Title Theft
Sign Up for Property Alerts
Many counties offer a free notification service that will alert you if documents are filed against your property. You can also set up a Google alert with your property address that will notify you if your property is listed for sale online.
Monitor Your Credit & Mail
Regularly review your credit report for inquiries that could indicate your identity has been stolen. You may want to freeze your credit if you believe you are the victim of identity theft or subscribe to a credit monitoring service. Be on the lookout for unexpected mail or phone calls from lenders, which could indicate loans being taken out on your property. Mail related to your home ownership, like tax documents, that is addressed to someone else could indicate a fraudulent deed in their name.
Purchase Title Insurance
Not all title insurance policies cover deeds and mortgages that are forged after the policy was issued. However, the First American Eagle Policy® does provide this coverage and is an excellent choice for homeowners who are concerned about becoming a victim of this fraud.
Additional Resources
You can learn more about these services by visiting the
Federal Trade Commission’s website. You can also learn more about the importance of title insurance on
First American’s website.
