{"id":2801,"date":"2023-02-22T11:00:00","date_gmt":"2023-02-22T16:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2801"},"modified":"2024-04-25T23:44:56","modified_gmt":"2024-04-26T03:44:56","slug":"texas-ag-investigates-home-title-lock","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/texas-ag-investigates-home-title-lock\/","title":{"rendered":"Texas AG Investigates Home Title Lock"},"content":{"rendered":"\n
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Do Anti-Fraud Companies Overhype Deed Theft?<\/figcaption><\/figure>\n\n\n\n

The latest cyberthreat is home equity theft, warns the Home Title Lock company. \u201cAre you already a victim?\u201d<\/p>\n\n\n\n

The company warns potential customers to \u201clock\u201d their deeds, or they could be left homeless and mired in credit problems.<\/p>\n\n\n\n

Now, Texas Attorney General Ken Paxton has launched an investigation into Home Title Lock\u2019s advertising.<\/p>\n\n\n\n\n\n\n\n

But Isn\u2019t Deed Theft a Real Risk to Homeowners?<\/h2>\n\n\n\n

Yes, it is an issue. And its consequences can be terribly costly. That\u2019s why many counties offer automatic alerts to homeowners when anything is recorded against their titles.<\/p>\n\n\n\n

If your own county recorder\u2019s office offers automatic title alert services, it\u2019s a good idea to sign up. And help the seniors<\/a> in your life sign up, too.<\/p>\n\n\n\n

If a fraud alert is triggered, it could mean someone has already tampered with a title. But the rightful homeowner\u2019s quick response can limit the activities the culprits can carry out.<\/p>\n\n\n\n

Quick reporting of deed fraud to the authorities might even prevent bad actors from getting loans on the real estate, or from transferring ill-gotten titles to other people.  <\/p>\n\n\n\n

How Can Someone Steal a Deed?<\/h2>\n\n\n\n

Consider a real example from the Austin, Texas area. A former public servant was charged with faking an elderly homeowner\u2019s signature. The plot? Steal the property before the homeowner died. Then, after the owner died, the culprit started making cash payments on the property taxes. In this case, the auditor\u2019s office noticed something odd \u2014 a signature that didn\u2019t match the same person\u2019s signature on the prior deed. And an investigation into home equity theft began.<\/p>\n\n\n\n

In other all-too-common scenarios, an outside business (not the homeowner\u2019s mortgage company) persuades a struggling homeowner to sign over the property deed, promising foreclosure relief \u2014 and taking money from the target on top of all that.<\/p>\n\n\n\n

\u261b<\/em> <\/em><\/strong>Learn more about <\/em><\/strong>fraud that targets people who are struggling to make their mortgage payments<\/em><\/a>.<\/em><\/strong><\/p>\n\n\n\n

No wonder deed fraud was a big issue in the housing market meltdown of 2008-2009. But deed theft didn\u2019t end after the crisis. As reported by ABC News<\/em>, New York City received 154 reports of deed theft in 2021. Philadelphia reported 53 cases during the same year. Sometimes, notaries have been in on these acts. In one deed fraud conspiracy, a notary was one of the people accused of stealing 11 Philly homes<\/a>.<\/p>\n\n\n\n

Taking Advantage of Homeowners\u2019 Fears? An Investigative News Team Looked at One Anti-Fraud Company<\/h2>\n\n\n\n

In mid-2022, ABC News<\/em> took a look at some claims and celebrity spokespeople appearing in Home Title Lock commercials. In the ads, figures such as Newt Gingrich, Rudy Giuliani, and former FBI agents described deed stealing as a trend that\u2019s \u201cexploding\u201d across the country. But for only $199 a year, listeners heard, Home Title Lock customers can protect their deed records, and even get help reclaiming the titles they\u2019ve lost to fraudsters.<\/p>\n\n\n\n

While Home Title Lock ads have, for years, called title theft \u201cone of the fastest-growing\u201d kinds of fraud for the FBI, the FBI itself didn\u2019t say this.<\/p>\n\n\n\n

The investigative reporters asked if the deed fraud victims in these commercials were real, or actors. It noted that some of the title \u201cexperts\u201d in the commercials had vested interests in Home Title Lock.<\/p>\n\n\n\n

Referring to what is arguably the most deceptive element of the ads, ABC News<\/em> pointed out that Home Title Lock didn\u2019t actually present details of real-life fraud victims who recovered their titles due to the company\u2019s support. And the news team wanted to know: Has the company helped its customers recover titles, including by paying for homeowner\u2019s legal fees, as its marketing materials have promised to do?<\/p>\n\n\n\n

Now, The State of Texas Is Questioning the Company\u2019s Advertising to Seniors<\/h2>\n\n\n\n
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Six months after ABC News<\/em> aired its investigative story, Texas Attorney General Ken Paxton’s office sent Home Title Lock a Civil Investigative Demand for documents. Texas asked the company if it could back up its marketing claims \u2014 including the \u201cexploding\u201d title theft references. According to a government press release on Jan. 24, 2023, Home Title Lock is under \u201cscrutiny\u201d over questionable claims that might lead people to believe they need to pay the company to \u201clock\u201d their titles. The Texas A.G.’s office said investigators are exploring the possibility that Home Title Lock\u2019s commercials fell afoul of the Texas Deceptive Trade Practices Act.  <\/p>\n\n\n\n

The A.G.\u2019s office says the commercials are geared to older homeowners who might be manipulated by scary marketing. In the recent press release, Paxton stated:<\/p>\n\n\n\n

I won’t tolerate false, misleading, or deceptive advertisements targeted to any Texas consumers \u2014 especially Texas seniors. <\/em><\/p>\n\n\n\n

Home Title Lock told ABC News<\/em> that it is cooperating with the Texas investigation.<\/p>\n\n\n\n

Meanwhile, In Maryland\u2026<\/h2>\n\n\n\n

When the ABC News <\/em>investigation went public, the Attorney General of Maryland published a Consumer Advisory, with the title What Is Home Title Lock Insurance, and Do You Really Need It<\/em>?<\/p>\n\n\n\n

\u201cYou may have heard a radio ad lately with a dire warning that your home can be stolen right out from under your nose,\u201d said the Maryland release, \u201cand the solution they are peddling is to buy \u2018title lock insurance\u2019.\u201d<\/p>\n\n\n\n

The advisory informed Marylanders of several key facts:<\/p>\n\n\n\n