Entries in property flipping (2)
More about fraudulent deed transfers
Earlier this week, I wrote a post about Philadelphia’s disturbing problem with fraudulent deed transfers. Apparently, title theft isn’t limited to any one city or jurisdiction.
McHenry County, Illinois has launched an online service that alerts homeowners if documents containing their names are submitted to county clerks for recordation. The service clearly targets criminals attempting to record fraudulent deeds to resell or collateralize real property belonging to others.
McHenry County homeowners can opt for a one year subscription for $12.99 or a three year subscription for $29.99.
Ed Rybczynski
in real estate fraud, land records talk, property flipping, fraudulent deed transfers, equity stripping
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Fraudulent deed transfers in the news
While I’ve heard sporadic reports of fraudulent deed transfers, mostly in underwriting seminars, the Philadelphia Daily News portrays title theft as a minor epidemic in the City of Brotherly Love. The problem has become so pervasive that a task force has been convened and public hearings scheduled.
An alarming “122 stolen properties” were reported in Philly in 2006 and it’s posited that many cases go unreported.
The elderly are particularly vulnerable to title theft when their homes sit vacant. The deeds often describe grantees as children or siblings of the grantors to exploit familial transfer tax exemptions. Not surprisingly, the stolen properties are often quickly resold (flipped) to innocent third parties.
Fraudulent deed transfers present an interesting dilemma because recording clerks typically lack the authority and skills to investigate sophisticated forms of crime. The creation of databases to tag names shown repeatedly in grantee indexes might provide clues for authorities until fraudsters catch on and start fabricating identities. Matching the names of grantees against the names of notaries shown in acknowledgments is another thought. So is the profiling of names that have requested transfer tax exemptions in the past.
Still, recording clerks can only do so much and it’s ridiculous to think that a deed might be unrecordable because of a buyers name.
All in all, it sounds like a problem best prevented by legislation that promises tough prosecution and lengthy prison sentences.
A special thanks to Dave Wirsching for bringing the article to my attention.
Ed Rybczynski
in land records talk, property flipping, fraudulent deed transfers, equity stripping
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