HARRISBURG – Attorney General Dave Sunday is warning Pennsylvanians of scams relating to homeownership, involving the false or forged transfers of a property deed or title. While these scams are not common, they can be devastating to the victims.
Deed fraud — also known as home title theft — involves the forging of documents to record a false transfer of the deed or title to another party. This may or may not occur with the homeowner’s knowledge and consent. Once another party has the deed or title of the home, they can then sell the home, take out a mortgage, or rent out to tenants.
Another variation of the scam involves a thief deceiving the homeowner into signing a deed — with a ruse of promising to help refinance a mortgage or pay overdue property taxes which transfers ownership of the home. In more complicated schemes, the bad actor may have knowledge that the target has failed to make tax payments and may use this against the homeowner.
“Scams today take many forms, and deed fraud is certainly one of the most devastating, as it involves someone losing their home,” Attorney General Sunday said. “When someone you do not know unexpectedly propositions you or attempts to solicit you about the title or deed to your home, your response should be to cease communications immediately.”
Consumers can use the following tips to help protect themselves from title and deed fraud:
- Do not sign any legal documents in a rush or if you are unsure. Consult a trusted advisor or lawyer. SeniorLAW provides free, confidential legal advice for Pennsylvania seniors statewide.
- Consult a real estate attorney before you sign documents. An attorney can perform a title search to make sure you are not purchasing or renting a property burdened by liens or claims.
- Contact your mortgage lender directly if you are a distressed homeowner. Mortgage lenders will often work with you to modify the terms of your mortgage. If you plan to sell the home, contact a licensed real estate salesperson. Do not pay an unlicensed individual to sell your property.
- If you are a property owner, you may want to check if your county has an alert system available for you to sign up to receive notifications any time there is a deed transaction for your property. Alternatively, you can periodically check the county website for any recent transactions on your property.
- You may also want to routinely check your credit report and utility bills that could also uncover title or deed fraud.
Consumers who believe they may be a victim of title or deed fraud are encouraged to contact the Office of Attorney General’s Bureau of Consumer Protection at 1-800-441-2555 or file a complaint online.
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