In 2022, Houston property owner Sam Cormier received a notice asking him to pay rent. The problem? It was for a property he already owned.
Cormier got in touch with the lender listed on his rent notice. That’s when he got the shock of his life.
It turned out ownership of that property had been transferred to a company with a $1 million loan taken out against it and seven others. All eight properties were eventually put up for auction.
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Now, Cormier, 84, is fighting to reclaim the properties that were stolen from him.
“I lost my money, I’m losing my voice, I’m losing my health. It’s really hard. This is traumatic,” he told KPRC 2 News.
Home title theft is a growing concern
It’s not so uncommon for scammers to steal people’s savings. But now, owners have to worry about their properties being stolen, too.
In 2023, there were 9,521 real estate fraud complaints filed, according to the FBI’s Internet Crime Report. That year, losses related to real estate crimes totaled $145,243,348.
Meanwhile, the Boston division of the FBI recently warned property owners about an uptick in home title theft as cases have increased across New England.
In Cormier’s case, he says a woman who had access to a notary was able to file new deeds in Harris County against his eight paid-off properties, which were valued at more than $1.1 million in total.
According to Cormier, the woman was his former partner, and he says she was able to secure a loan against the properties because there was no mortgage attached to them.
“They liquidated all of my properties and sold it at the auction to three or four different people,” Cormier told KPRC.
Cormier thinks he was targeted because of his age. The woman who is suspected of perpetuating the scheme is about 30 years younger than him.
An attorney from Vestige Law in Houston explained to KPRC that it’s all too easy to file a new deed on a property. It’s a matter of having a notary stamp and $10 to $20 for a recording fee.
Law enforcement in Houston is thankfully on the case, and charges are expected against the woman who allegedly stole Cormier’s properties. There’s also a civil case pending against the lender who gave out the $1 million loan against the paid-off properties.
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What to do about title theft
One of the reasons scammers are able to get away with home title theft is that they tend to go after owners who live out of state and aren’t on-site to check on their properties all the time. It’s also common for them to target older homeowners as well as people who own multiple properties.
Properties that have been fully paid off can also be a common target. When a home is sold with a mortgage, the lender is first in line to be repaid. When there’s no mortgage, a scammer can pocket the proceeds.
The good news, though, is that there are steps you can take to avoid becoming a victim of home title theft.
Stay on alert
The first step, of course, is knowing which properties are more likely to be targeted. From there, it’s important to monitor property records in the county your home is in. Some counties have a title alert system you can subscribe to so you’re notified of a change.
You can also set up a Google alert for your property address. That may not help you catch someone trying to take out a loan against your property. But, it could alert you to the fact that someone is trying to list and sell your home to pocket the proceeds.
Keep an eye out
It’s also important to check up on your property and report suspicious activity. If you live out of state, you may want to hire a property manager to keep an eye out and do basic maintenance. Otherwise, you can ask family members who live in town or neighbors to serve as your lookout.
Consider a trust
Another way to potentially avoid home title theft is to put your property into a trust. During this process, the trust becomes the formal owner of the property, and you or an appointed trustee are in charge of overseeing the trust.
A trust won’t make it impossible for someone to steal the title to your home. But they might have to jump through hoops like forging trust documents or having to pretend to be you or whoever the designated trustee is. That might be enough of a deterrent.
Insure against it
There are also some types of home title insurance that offer protection against home title theft. But you’ll need to check the details carefully, since most title insurance doesn’t safeguard against new theft — it only offers protection in the event that title fraud took place before you bought your property.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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