Property fraud, sometimes referred to as deed fraud or recording fraud, is a growing concern for homeowners and property owners. It occurs when someone files forged or fraudulent documents with a county recorder in an attempt to transfer ownership, place a lien, or otherwise gain financial benefit from a property they do not own. Properties that are paid off or have no mortgage are often targeted because there is less oversight from a lender.
Once a fraudulent document is recorded, the responsibility to correct it typically falls on the property owner. This often requires petitioning the court, at the owner’s expense, to have the fraudulent recording removed. Until the issue is resolved, selling the property or obtaining a mortgage or refinancing can be difficult or even impossible.
