Naomi Brown raised 11 children while working two jobs to buy her first, modest home in Miami. Brown left her house to her son Theodis Jones. It was on the verge of being taken away, all because Jones’ ex-girlfriend, Adrienne McSweeney, took out two loans totaling $120,000 on the property behind his back. A private lender, not a bank, made the loans in Jones’ name.

A man claiming to be Jones accompanied McSweeney to the title company closing. The two had the deed to the house and Jones’ driver’s license, which he thought was lost. The real and the phony Jones looked nothing alike. Yet, the loans were approved. 

Foreclosure loomed. This is bad enough, but for Jones, there was an added insult to his injury. Although he contacted the lender, title company, and police, no one believed him. 

This evidence did not stop the foreclosure process.

Foreclosure Continues 

After Jones hired attorney Mark Mastrarrigo to fight the foreclosure, he got a lucky break. It turned out that the title company had saved a video from the closing. It was clear that the man wearing a mask in the video was not Theodis Jones. A handwriting expert found that the signature on the document did not belong to Jones.

This evidence did not stop the foreclosure process. But Mastrarrigo remains confident, saying that he knows they will prevail on the case and get the mortgage and lien stripped. The attorney is now asking a judge to dismiss the foreclosure and the lien for the $120,000 placed on Jones’ house. Miami-Dade police are also conducting an investigation. 

Fraud Nightmare Increasing 

The bad news is that this nightmare scenario is becoming all too common in Florida. Deed fraud, also known as title fraud, occurs so often in the state that Broward County Property Appraiser Marty Kiar calls South Florida the “title fraud capital of the world.”

For instance, in Volusia County, Javon Walden is facing an “organized scheme to defraud” charge after he allegedly used fraudulent quitclaim deeds to make it look like two property owners, both deceased, transferred ownership of their homes to him. While he sold one of the homes, an heir discovered the crime and stopped it, as per court records. Walden lived across the street from one of the property owners and filed the false quitclaim deed just days after his neighbor committed suicide. If convicted, Walden faces up to 30 years in prison.  

One of the most troubling facts about deed fraud is that it isn’t always total strangers trying to steal your home.

Deed Fraud

Deed fraud occurs when someone meddles with a property’s ownership fraudulently. It is a form of identity theft.

When you purchase a home, your title company registers you as the property’s true owner. That information is available in your county courthouse and title office. A deed fraud thief has a significant amount of your personal data and uses it to impersonate you in a title transaction. 

One of the most troubling facts about deed fraud is that it isn’t always total strangers trying to steal your home. Many of those responsible for this crime commit deed fraud on family members, friends, and neighbors. 

Once the criminal has the title to your home, there are all sorts of ways in which they can steal from you. Perhaps, the most common is taking out a Home Equity Line of Credit (HELOC) in your name. Lenders may allow borrowers to borrow up to 85 percent of the equity in their home. You should find out about this crime relatively quickly, as it’s obvious the thief is not making monthly loan payments.

Other thieves may transfer your property to their name and then take out a new mortgage. Again, the criminal is not making payments on this stolen property. The bank then begins foreclosure. 

Unoccupied vacation or rental homes are particularly vulnerable. The criminal may attempt to sell the home to a legitimate buyer. Since they are an illegitimate seller, they just pocket the funds. 

In the reverse mortgage scam, the criminal cashes out the equity in your home via refinancing. 

Warning Signs of Deed Fraud

If you discover any of the following conditions involving your deed or similar documents, suspect deed fraud:

• Recorded document on the property of which you were unaware.
• Recorded documents that you did not sign or where your signature was forged.
• Recorded documents transferring ownership or part ownership of your property to another party without your knowledge.
• Recorded documents executed by someone who was deceased at the time.
• A loan is taken out on the property without your knowledge.
• Changes made to a recorded document after you signed it.

Become suspicious if you are not receiving bills when they are due.

Protecting Yourself from Property Fraud

Protecting yourself from fraud means keeping close tabs on your credit report. By using a credit monitoring service, you learn of any new loans taken out in your name right away. The major credit bureaus — Equifax, Experian, and TransUnion — also offer one free credit report every 12 months on AnnualCreditReport.com. 

Many counties in Florida, including Palm Beach County, offer a free Property Fraud Alert system. Noting that victims of fraud and identity theft often are unaware their homes have been stolen, this online subscription service provides an early warning system. When a document, such as a deed, mortgage, or record involving land, appears in the recorder’s office with your name match, you are notified within 24 hours. Property owners can take action if it appears fraudulent activity is occurring. Just sign up to help guard against property fraud.

Avoid identity thieves by never giving sensitive information to anyone over the phone or by email. Scammers need your personal information to try to take out reverse mortgages or commit other financial crimes. Never keep your Social Security card in your wallet or any other susceptible place. 

Become suspicious if you are not receiving bills when they are due. With deed theft, that might involve utility bills and property tax assessments. Call your creditors to ensure that thieves have not stolen your identity. Check your credit card and other bills and note any changes or discrepancies. 

If you don’t have title insurance on your property, purchase a policy right away. 

If you own a second home or vacation property, make sure all mail is forwarded to your primary home when you are not in residence. Mailbox theft is one of the easiest ways for thieves to obtain your personal information. 

Rather than just throwing out personal and financial information, shred such documents carefully. Dumpster diving can give thieves access to all sorts of sensitive information if it isn’t destroyed. Do not post any sensitive personal information on social media. 

When you know what steps to take beforehand, you’re less likely to panic if identity theft should happen to you.

What to Do if You Become a Victim

If you’re a victim of deed fraud, contact your local sheriff’s department and the FBI immediately. Get a certified copy of the fraudulent deed from your county register’s office. Find an attorney who can help get the fraudulent deed voided. Your lawyer will also correct the public record by filing the appropriate documents. It may prove necessary to file a lawsuit to clear the title record. 

The Bottom Line

No matter what precautions you take, identity theft and its scary aftermath are always a possibility. Many fraudsters obtain personal information from records available online. When you know what steps to take beforehand, you’re less likely to panic if identity theft should happen to you.