On the Rise: Deed Theft in New England

Can you imagine if someone faked a quitclaim deed and transferred your home out from under you? Years of steadily built-up equity, taken in one fell swoop. It does happen.

New York has had to formally create a crime named “deed theft” to treat it with the seriousness it deserves—not just as forgery, but in a category of its own. Other states have followed in New York’s footsteps.

Lately, the New England states are reporting a rise in these swindles. Often, investigative journalists make these cases known. An ABC news outlet just reported an incident in New Hampshire this month.

Media attention can galvanize the public, resulting in pressure for states to take action. Here’s the latest from New Hampshire and surrounding states—and what a deed holder can do.

“Initially, We Were Shocked…”

Wendy and David were shocked to find out their deed had been falsely signed away. Then, they felt intensely vulnerable. How could someone have masqueraded as them to steal the home which they bought to enjoy in their retirement?

David’s sister lives in Derry, New Hampshire, right next to the property. She was the first to say that the land had a for-sale sign on it. Wendy and David rushed to call their real estate agent—who was shocked that some other company appeared to be selling the land. It’s a good thing David’s sister said something. The couple’s real estate agent worked with the county to prevent the swindler from reselling the home to another buyer.

But law enforcement hasn’t caught up to the swindlers. Wendy and David ultimately dropped their plans to retire in New Hampshire. At least the couple ultimately managed to sell their property. Other victims are not always so fortunate.

How Does Quitclaim Deed Fraud Work?

The legal instrument known as a quitclaim deed is useful for conveying real estate without the need for a title search and without a warranty. Using a quitclaim form can be perfectly fine to transfer property among couples or family members, from one divorcing partner to the other, or from a homeowner into their LLC.

When a quitclaim is done fraudulently, identity theft is in play.

Ever since the pandemic hit, the title pirates have been increasingly aggressive. A lot of real estate information is kept online. Title thieves are masters at sniffing it out. They concoct “proof” of identification, and pose as the deed holders when taking deeds. In the new case in New Hampshire, the perps made false driver and Social Security IDs. They falsified a notarization on the deed transfer. All of this worked. David and Wendy were forced to freeze their credit profiles, and get new IDs.

Most swindlers don’t want victims’ homes. They do want access to the property’s value before the rightful owner gets wise to the scam. The idea is to sell it, or extract value from it. Once a deed is pirated by quitclaim, victims often fight in courts for years to get their property back. The longer it takes for a victim to learn of the incident, the harder their legal struggle gets.

So, how does a victim find out they’ve been targeted? One day, the rightful owner or heir may get a call from a neighbor like Wendy and David did. Or they’ll receive an unexpected demand for a loan payment. Or an innocent party will show up at the home, thinking they’ve been approved to buy or rent it. Or a foreclosure notice might appear—based on a swindler’s use of the home as collateral.

Who’s Most at Risk for Deed Fraud?

Quitclaim fraud incidents in Maine, Massachusetts, New Hampshire, and Rhode Island are piling up, snaring hundreds of victims in each state. According to lenders and law enforcement, New England is experiencing deed-related crime at an unusually high level.

But anybody’s deed could be targeted. That said, it’s harder to pull off such a trick in certain places than in others. Some county deed recorders now make people prove their identities before deeds or other claims are accepted for recording. Whole states could be going the way of Arkansas. Last year, Arkansas enacted a law requiring identity verification. (Traditionally, county deed recorders are only allowed to confirm that someone’s paperwork is complete as required for recording. They do no further verifications.)

The empty home is also of interest to scammers. People become especially vulnerable to deed fraud when they leave a property unbuilt or a home unattended for some time.

If you do leave your property unoccupied for a while, make arrangements to have it watched. Have somebody tidy up anything that could be seen as advertising that the place is empty. If you’re not getting utility or tax bills (or if there’s a notable change in the charges), find out why immediately. If you leave bills on autopay, that’s fine—but check the billing webpage and be sure everything looks normal month to month.

Be sure mail isn’t accumulating at a home you’re not living in. Homes that are constantly dark may become giveaways. And announcing your travel plans in public (social media is a frequent culprit) can be tipping off swindlers.

Homes can also turn into easy pickings if left empty by owners who move into assisted living. Seniors are at special risk because many have paid off their mortgages, and swindlers find mortgage-free homes easier to manipulate. Title thieves might find loan-free homes simply by sifting through public records.

In some of the ugliest cases, relatives have pressed vulnerable elders to sign over their deeds.

Home Title Theft Prevention and Action

If you’re buying a home, look out for seller-impersonators. Ask your agent to ask for the seller’s identification and check key details and phone numbers. If unsure—especially if the seller recently acquired the property—check with the notary who signed the deed that the notarization is real.

In general, be careful with papers that contain personal identification or financial details. Shred any statements that you dispose of.  

One of the easier measures you can take today is to set up an internet alert with your property address as the search term. Get in the habit of looking at a popular real estate listing site, and make sure your home shows the “off market” label.

Also, very easy and actually important: Visit your county clerk’s website and look for deed fraud alerts. Many counties have adopted this feature to keep property safer. Enter your email into the system, and it’ll send you a notification if a claim is recorded in the county against your title. Obviously, if the claim happens to be a deed transfer that you didn’t know about, damage has already been done. But you’ll be able to notify the county and your local law enforcement team about the problem. Tell your title company, local tax assessor, and lender (if any), too. Quick action can keep your home from being passed off for profit to a third party.

If a deed theft is confirmed, look up your state’s attorney general and report the scam. At this stage, Wendy and David called an attorney to represent them. What a downer for these hopeful retirees! Kudos to ABC News 9, reporting on New Hampshires’s WMUR, for reporting the story.