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What is Home Title Theft?


Your home is one of the biggest financial investments you’ll make in your lifetime, so it’s important to protect it. Identity theft is on the rise, with nearly 33% of Americans facing this type of theft in 2024, so safeguarding the information around your home and mortgage loans is vital. We’re here to give you the information you need to know about home title theft and how you can protect yourself this year.
 

What is home title theft?

Your home title is the proof of legal ownership of a property, also known as your house deed. Home title theft is a type of real estate fraud, where someone fraudulently obtains access to your identity (through stealing your social security number or other documents) and use this to steal the deed or title for your home.
 

From there, the thief can take advantage of their acquisition of your home ownership and conduct other types of fraud such as:
 
  • Refinance fraud. This is where a thief can take advantage of the home equity you’ve built in your home and leave you on the hook for a new, often larger, mortgage. They don’t own your home, but they use your identity and previous investment in the property to steal money from you.
  • Home equity line of credit (HELOC) fraud. Like refinancing fraud, thieves use the home equity you’ve established in your property to take out a home equity loan and accrue large amounts of debt under your name. Unless you can prove it wasn’t you who borrowed the money, you’ll be responsible for paying it back.
  • Forged deeds and sales. For vacant, non-primary residences like vacation or rental homes, thieves may use home title theft to sell this real estate fraudulently.
 

How common is home title theft?

 
Thankfully, home title theft is fairly uncommon. This is because there are a number of layers of protection that most homeowners have on their properties, not specifically for this purpose but that come with benefits that protect against this type of fraud. 
 

For instance, home insurance policies and mortgage lender protection often means that home title theft is much more difficult to fraudsters. Additional steps, though, can be taken to more fully protect your home title.
 
 

What are the signs of home title theft?

 
There are several ways that you can identify that you may have become a victim of identity theft and home title theft. If you see any unfamiliar line items on your credit report, this should be reported and investigated immediately. This is why you should be checking your credit reports frequently, at least once every 3-4 months. Any new mortgages or lenders that you don’t recognize should be flagged and reported.
 

If you stop receiving the typical “homeowner” mail that you would ordinarily expect to receive, like bills and notices from utilities or lending companies, this could also be a sign that you’ve had your home title stolen. If you start receiving large quantities of mail regarding financial services that you’ve not knowingly signed up for, like home loans, this could also be a sign of identity theft.
 

You may be using a credit monitoring service to protect your overall identity from any fraudulent activity. If you receive any notifications from these services, it’s best to investigate it immediately. While this could be a perfectly innocent mistake or reason for being flagged, it’s always better to know for sure as soon as possible.
 

Biggest Risk for Title Theft


The biggest risk area for title theft is vacant land, as it often goes unmonitored for extended periods. Unlike primary residences, which homeowners actively maintain and receive mail at, vacant landowners may not frequently check on their property. This makes it easier for fraudsters to forge documents and attempt to transfer ownership without detection. Many counties offer fraud alerts, such as these for Benton, Marion and Carroll County: Benton Circuit Clerk and Property Fraud Alert.

What to do if you suspect home title theft

 
If you’re concerned that you may be a victim of identity theft, contact your mortgage lender immediately. They can help you determine next steps to take to safeguard your identity and prevent your home title from being used against you for the financial benefit of a fraudster. 
 

You should also alert the credit bureaus that you think you’ve become a victim of identity theft. They’ll lock down your credit to prevent new accounts being opened in your name, particularly as these new accounts can have a significant impact on your credit score moving forward. The credit bureaus will also add an alert to your credit file so that you can report and dispute any suspicious activity more easily.
 

Finally, you should file a police report with your local police department. Both identity theft and home title theft are serious crimes, so they should be reported as such. This will also help to create a paper trail should you need to advance the investigation at any point.
 
 

How to prevent home title theft

 
Before you become a victim of home title theft, or if you’re recovering from a previous incident, there are several steps you can take to protect your biggest financial asset.
 

1. Check your credit reports regularly

Make it a routine practice to check your credit reports to monitor for suspicious activity. There are some services that you can pay to do this for you, but it’s always worth having a good understanding of your own report yourself. This means that you can identify anything suspicious more quickly.
 

2. Invest in title insurance

You may want to consider investing in homeowner title insurance that protects you after you’ve purchased your home. This is different from lender title insurance that’s used during the transfer of property ownership when you make your purchase.
 
If any liens or other holds on the property title come up after purchase, your title insurance can pay for any necessary legal fees associated with investigating and resolving this. The insurance also helps you defend your right to your home ownership, and protects you against fraudulent claims that challenge who owns the property should you be a victim of home title theft.
 

3. Understand common scams

Knowing what scams are currently popular among thieves, particularly around home ownership and finances, is a good practice to stay on top of. Some fraudsters will target particularly vulnerable populations with techniques like elderly financial fraud, or by stealing data from your devices.
 

If you’re responsible for vulnerable people in your life, make sure they’re also aware of potential scams that could target them. Always do what you can to protect your own and other’s financial information, particularly from scams like phishing. Always conduct confidential business over secure wi-fi and, if possible, not in a public place. This is one of the best ways to avoid practices like bank fraud and identity theft.
 

Protect your home with CS Bank

Safeguard your home title and identity when you work with a home loan lender like CS Home Mortgage. Our team is here to help you find the best mortgage for you as CS Bank’s full-service mortgage lender.
 

Learn more about how to protect yourself from fraud and identity theft, both while you’re looking to take out a new home loan and once you’ve purchased your property. Visit one of our branches today or get in touch with the home lending team to get started and find out how you can protect your home equity as best you can.