{"id":1033,"date":"2020-10-19T06:00:32","date_gmt":"2020-10-19T10:00:32","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1033"},"modified":"2024-04-25T23:20:28","modified_gmt":"2024-04-26T03:20:28","slug":"real-estate-law-enforcement-catching-up-to-deed-fraudsters","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/real-estate-law-enforcement-catching-up-to-deed-fraudsters\/","title":{"rendered":"Real Estate Law Enforcement: Catching Up to Deed Fraudsters"},"content":{"rendered":"\n
\"Silhouette<\/figure><\/div>\n\n\n\n

Some years back<\/a>, the state of Georgia, under the Georgia Code (GA \u00a7 4<\/a>4<\/a>-2-43<\/a>), made stealing houses by recording fraudulent or counterfeit real estate deeds a felony, incurring 1-10 years in prison. Witnesses who help perpetrate Georgia deed fraud are subject to the same potential penalties.\u00a0 <\/p>\n\n\n\n

Georgia is not alone in its resolve. The FBI reports that\nreal estate fraud ranks among the fastest-growing U.S. crime categories. Now,\nlaws are catching up to the fraudsters, deed recorders are starting to alert\npeople to filings on their homes, and cities are helping people confront the\ncon artists.<\/p>\n\n\n\n\n\n\n\n

The View from the States<\/h2>\n\n\n\n

Those who wrongly take or keep houses face fines and\nsentences in every state, and can be charged either for felonies, which carry\nlong sentences, or as misdemeanors, which carry sentences up to a year.<\/p>\n\n\n\n

Sometimes the crime begins by overstepping the boundaries of\na power of attorney, or taking advantage of the role of a deceased person\u2019s representative.\nManipulative personal representatives use their authority to sign for owners, transferring\ndeeds into their own names or family members\u2019 names.<\/p>\n\n\n\n

Another type of house-stealing involves fake signatures. Once\na fake deed is created, some fraudsters sell property to unwitting buyers \u2014\ntypically with quitclaims<\/a>,\nwhich don\u2019t require title searches or warranties. In every state, certain types\nof forgery can be charged as felonies. In New York State, for\nexample, deed forgery is classified as second-degree forgery \u2014 which makes it a\nfelony.<\/p>\n\n\n\n

Your state law sets forth the statute of limitations; after that time passes, many fraudulent deeds will be difficult to set aside. InTexas the time\u2019s up after four years<\/a>. But if the deed is a forgery, it\u2019s void from the start, so not time limit applies. A forged deed is void\u00a0ab initio<\/em>\u00a0and has no valid existence. <\/p>\n\n\n\n

The personal representative who wrongly signs a deed has\ncommitted fraud \u2014 but not forgery, because the document was, on its face,\nexecuted by the owner\u2019s representative. Such a deed may be held void in a\ncourt, but it is not the same thing as a forgery, which was ineffective from\nthe moment it was created.<\/p>\n\n\n\n

Note:<\/em><\/strong> Criminal law is not the victim\u2019s only\nrecourse. Deed fraud is also subject to civil actions by those who are harmed\nby it.<\/p>\n\n\n\n

Enforcement at the Federal Level <\/h2>\n\n\n\n

Forgery is a federal crime if the deed is taken or sent across\nstate lines or if the crime spans multiple states. A forgery could also\nconstitute the federal felony of identity theft. Various types of real estate\nfraud can be prosecuted at the federal level, especially when carried out\nthrough organized criminal schemes. Federal crimes tend to carry harsher\nsentences. <\/p>\n\n\n\n

The Federal Bureau of Investigation focuses on organized fraud for profit, sometimes committed by professionals in the industry who abuse their inside knowledge of real estate or mortgages<\/a> to steal deeds, cash, or value from lenders or homeowners. The Secret Service, too, works with its field offices in states to arrest criminals who manipulate real estate documents for profit. The FBI and Secret Service even pursue individual deed fraudsters, if the community impact or level of loss is high.\u00a0Another federal agency often involved in deed fraud is the Federal Housing Finance Agency, part of the U.S. Office of the Inspector General. The FHFA investigates crimes jointly with the states\u2019 attorneys general and insurance departments. <\/p>\n\n\n\n

Many real estate fraudsters sought by federal investigators steal\nothers\u2019 identities to defraud banks and credit unions. Others systematically take\nadvantage of distressed mortgage holders. The perpetrators pretend to be able\nto rescue the struggling homeowners by transferring the deeds to investors, but\ntheir plans involve selling the properties and extracting fees from panicked homeowners.\nSometimes the swindlers rent the property back to their victims \u2014 while ignoring\nthe mortgages, leaving the homes at risk of foreclosure after all. <\/p>\n\n\n\n

Still other scams involve collecting names of deceased deed holders. The criminals scour the obituaries and forge deceased people\u2019s names on deeds and record them so they can borrow money off the properties that they\u2019ll never repay. Some deed fraudsters have been known to flee the country<\/a>. <\/p>\n\n\n\n

More Protective Policies Help Catch and Prosecute Deed Fraud<\/h2>\n\n\n\n

Catching deed fraud early matters. As with any fraud, the\nlonger it takes to find and address it, the more complicated a problem can\nbecome. As a general rule, owners should check the county records connected\nwith their property from time to time and be on the lookout for unusual filings.\n<\/p>\n\n\n\n

Protective policy-making has occurred in the city of Philadelphia<\/a>, which now offers the\u00a0Deed Fraud Guard<\/a> system. People can register to be notified of filings on their properties \u2014 and look at the documents for free.<\/p>\n\n\n\n

New York City\u2019s Department of Finance (DOF)\u00a0now also lets people\u00a0sign up for alerts<\/a>\u00a0that tell them when liens for unpaid debts and other documents are filed against their properties. The DOF urges New York City residents<\/a> to take a number of actions including the following. The list is informative for homeowners anywhere:<\/p>\n\n\n\n