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.
County recorder offices are required to record documents as they are submitted, but they cannot verify the authenticity of every filing. As a result, fraudulent activity can go unnoticed until significant damage has already occurred. Early detection is critical. The sooner suspicious activity is identified, the easier it is to limit further filings and begin correcting the public record.
Many county clerk offices maintain dedicated Property Fraud Units that focus on prevention and investigation. These units assist property owners by researching questionable filings and coordinating with law enforcement when appropriate.
In addition, several counties offer free Property Fraud Alert programs. These services notify you by email, phone, or text whenever a document is recorded against your name or property. While alerts do not prevent fraud from occurring, they provide a valuable early warning so action can be taken quickly.
Property owners in Northern Illinois can take advantage of the following free alert programs and fraud resources. You need to subscribe for each county in which you own property.
These programs allow property owners to monitor activity tied to their name or property and receive notifications whenever a document is recorded.
If you receive a fraud alert or believe a document may have been recorded without your authorization, do not ignore it. Contact your county’s Property Fraud Unit immediately. Their staff can help research the issue and coordinate next steps, including working with law enforcement when necessary. Acting quickly can prevent additional fraudulent filings and reduce the time and expense required to resolve the issue.
Property fraud is not common, but the consequences can be serious. Enrolling in a free property fraud alert program and knowing who to contact if something appears suspicious are simple, proactive steps that can help protect one of your most valuable assets.