Understanding and Preventing Deed Fraud: A Guide from the Clear to Close Podcast – Part 2

Welcome back to the Clear to Close Podcast! We’re thrilled to have you join us for the second installment of our deep dive into deed fraud. In today’s episode, Josh Thomson, CEO of TechneTitle, and Trey Barrowman, COO, continue their crucial discussion on deed fraud, one of the most alarming threats in the real estate industry.

If you missed Part 1, we encourage you to [catch up here], where Josh and Trey introduced the concept of deed fraud, explained how criminals exploit the system to steal properties, and shared initial steps homeowners can take to protect themselves.

Now, in Part 2, they go even further—exploring various types of fraud, key red flags to watch for, and practical measures to help you safeguard your property and clients. Whether you’re a real estate professional or a concerned homeowner, this episode is packed with essential tips and tools to ensure you’re well-prepared to handle deed fraud risks.

Types of Deed Fraud: The Many Faces of Property Scams

Deed fraud is a multifaceted crime, and it’s essential to recognize the different ways it can happen. In this episode, Josh and Trey shed light on three main types:

  1. Forged Deeds: Criminals often create fake deeds and file them with the local recorder’s office to make it appear as though they legally own your property. Forged deeds are especially common with vacant properties and homes owned by elderly individuals.

  2. Mortgage Fraud: In some cases, fraudsters take out mortgages or other loans against the property, leaving the homeowner responsible for the debt. This type of fraud can remain undetected for months or even years, especially if the victim doesn’t monitor their property records closely.

  3. Impersonation Fraud: Fraudsters can pretend to be the property owner or their representative to transfer ownership to themselves or an accomplice. This tactic is often seen in cases where properties are held in trusts or by individuals who don’t actively manage their records.

Understanding these variations is crucial for recognizing how vulnerable properties can be and the lengths criminals are willing to go to pull off their schemes.

Red Flags That May Indicate Deed Fraud

Josh and Trey emphasize that while deed fraud can be sophisticated, there are several warning signs that real estate professionals and homeowners should watch for. Key indicators include:

  • Unusual Notices or Bills: If you receive unexpected mortgage or loan statements, it could indicate unauthorized transactions linked to your property.

  • Changes in Property Records: Frequent checks of property records can help detect unauthorized alterations or transfers.

  • Mail Addressed to Unknown Individuals: Receiving mail in other names could mean someone else is fraudulently claiming residency or ownership.

Regularly monitoring your property’s status is the best way to catch these early warning signs. Catching a problem in the early stages can make a significant difference in how easily and quickly you can resolve it.

Protecting Yourself and Your Clients from Deed Fraud

In this episode, Josh and Trey delve into actionable steps that homeowners, as well as real estate professionals, can take to minimize the risk of deed fraud. Here are some of their top recommendations:

  1. Verify All Transactions Carefully: Ensure every transaction, particularly those involving money or title transfers, is handled with rigorous due diligence. Double-check the identities of all involved parties to minimize risks.

  2. Educate Clients on Deed Fraud Prevention: For real estate professionals, educating clients about deed fraud can help them take preemptive steps. Many clients may not realize their vulnerability or the simple steps they can take to protect their property.

  3. Consider Homeowner’s Insurance with Fraud Coverage: Some insurance policies offer fraud protection clauses, which can be invaluable if you or a client falls victim to deed fraud. Investigate coverage options and encourage clients to consider this additional layer of protection.

Verifying Your Clients: Ensuring Safety and Authenticity

For those in the real estate field, client verification is a critical defense against fraud. Josh and Trey offer several strategies to help ensure clients are who they claim to be and reduce fraud risks:

  • Use Verification Tools: Modern verification software and title protection tools can confirm a client’s identity and detect potential red flags.

  • Require Multiple Forms of ID: Asking clients for additional identification can prevent impersonation attempts and establish credibility.

  • Stay Informed on Fraud Trends: The nature of fraud is constantly evolving. Staying up-to-date with industry resources, fraud reports, and podcasts like Clear to Close can make a real difference in fraud prevention.

What to Do If You Become a Victim of Deed Fraud

If you or your clients suspect deed fraud, immediate action is essential. Josh and Trey recommend taking these steps right away:

  1. Contact Local Authorities: File a report with your local police department and explain the situation in detail.

  2. Notify the County Recorder’s Office: Inform your local property records office of the suspected fraud so they can flag the account and take additional protective measures.

  3. Consult a Real Estate Attorney: Legal expertise is invaluable for recovering control of a property title. Attorneys specializing in deed fraud can help reverse fraudulent transactions and advise on legal recourse.

  4. Work with a Title Insurance Company: If you have title insurance, your provider may offer support services and coverage to help resolve the issue.

Tune In and Protect Your Assets

Don’t miss this essential episode of the Clear to Close Podcast. By arming yourself with knowledge about deed fraud, you’re taking crucial steps toward protecting your property and investment. Josh and Trey’s insights offer the guidance you need to recognize, prevent, and respond to deed fraud—giving you peace of mind in today’s unpredictable market.

Stay vigilant, stay informed, and remember: proactive steps now can save you from a world of trouble down the road. Listen to Part 2 of our deed fraud series to equip yourself with the tools and strategies that can safeguard your home, business, and clients from one of the most significant threats in real estate today.

Time Stamps & Show Notes: 

(00:00 - 00:12) Introduction

(00:13 - 05:23) Dealing With Fraud

(05:24 - 09:00) Watching for Red Flags 

(09:01 - 18:07)  Verifying Clients 

(18:08 - 20:37) What to do

(20:38 - 21:40) Closing

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