Homeowners in New England are at risk from a devastating scam that could destroy their financial security. Massachusetts-based officials from the FBI recently sounded the alarm about the crime, urging people who own property to be on the alert.
"Folks across the region are having their roots literally pulled out from under them and are being left with no place to call home," Jodi Cohen, special agent in charge of the FBI’s Boston Division, said in a release on April 1.
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The scam that residents are falling victim to is known as quitclaim deed fraud, home title fraud, or home title theft. It has been on the uptick in the New England area, and it is devastating because it targets what is, for most people, their most valuable asset: their home.
Here’s how the scam works, and what you can do to avoid it and keep your own home secure.
New England homeowners are suffering big losses
Home title fraud can take different forms, but it often starts with forged documents. Scammers use those documents to show that ownership of a property has changed hands.
Once they appear on paper to be the owner of the home, scammers may sell the property or vacant land, rent out the property, or take out a mortgage on the property and walk away with the funds without making payments. Often, the homeowner is none the wiser about any of this happening if they don’t live in the house full-time.
According to the FBI, scammers — called title pirates — usually look through public records to find property that is not mortgaged or that is vacant. In other situations, people target their own family members since they already know details about the property.
The scammers sometimes involve unsuspecting real estate agents who sell the home without knowing they aren’t dealing with the real owner. Meanwhile, when the real owners eventually find out, they’re forced to go to court to try to recover what’s theirs.
While it may seem far-fetched that someone could steal a property by changing some paperwork, the reality is that this happens far too often — and cases are on the upswing in the New England area. The FBI’s recent warning to homeowners provided details on just how often home title fraud is happening, and the numbers are shocking.
Between 2019 and 2023, for example:
- 262 Maine victims lost $6,253,008 to home title fraud.
- 1,675 Massachusetts victims lost $46,269,818.
- 239 New Hampshire victims lost $4,144,467.
- 224 Rhode Island victims lost $4,852,220.
Nationwide, during this same period, there were a total of 58,141 victims that reported $1.3 billion in losses. And, things may be even worse than they seem, as not every victim reports it or even realizes they’ve been scammed.
And, it’s not just homeowners who suffer from these crimes.
If a defrauded buyer purchases a property that an illegitimate owner sold, they don’t get to keep the house once the issue is discovered — and they may never recover their funds from the scammer who sold the property to them.
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How to protect yourself from quitclaim deed fraud
The FBI has some tips for owners and realtors to try to avoid this type of fraud and protect their assets. Specifically, homeowners should:
- Monitor online property records to make sure no changes to the deed occur.
- Sign up for title alerts with your county clerk’s office, if they’re offered.
- Regularly drive by properties you own but don’t living in, or hire a managing company to do the same
- Ask neighbors living near vacant land or property to notify you if they notice suspicious activity
- If you stop getting utility bills, contact the providers and find out why
Meanwhile, real estate professionals are advised to do in-person identity checks, and request copies of documents only the true homeowner would have (like original surveys) and send a certified letter to the address of record on the tax bill when buying or selling properties. Agents should also call to verify if a public notary actually signed documents and they should avoid remote closings when possible.
By following these best practices, you can help avoid becoming one of the thousands of victims of quitclaim deed fraud who end up suffering huge losses — and dealing with a ton of financial stress and hassle in trying to recover them.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
