New Jersey Deed Fraud Report Prompts Lawmakers to Advance Three Bills

New Jersey has recorded the nation's second-highest number of deed fraud cases, according to a report covered by Yahoo News. The report, from SCI, urges the state to take stronger action against the crime.

What deed fraud is

Deed fraud, sometimes called title fraud, happens when a scammer impersonates a property owner and illegally transfers the property's title or deed without the owner's knowledge. According to the report, scammers use tools such as remote closings, wire transfers and fraudulent notarizations. The aim is to sell the property to an unsuspecting buyer before the real owner finds out.

What the report found

SCI says the raw number of seller impersonation frauds may still be relatively low, but the number is increasing. The report recommends several changes:

• Stronger seller identification requirements
• Better safeguards for recording documents
• Property alert systems
• Faster quiet title procedures, which are the legal process for resolving disputes over who owns a property

Movement in Trenton

State lawmakers had previously introduced deed fraud bills, but every proposal stalled. On Oct. 5, after the report was released, the Assembly Housing Committee advanced three of those bills. The source does not say whether the bills have passed or become law.

Why it matters

For homeowners, the concern is that a property can be sold or encumbered without the owner taking part in the transaction. Vacant homes, second properties and homes with no mortgage may be especially attractive targets, since an owner may not notice changes quickly. Even if the overall number of cases is small, the consequences for an affected owner can be serious and take time to resolve.

What you can do

• Check whether your county clerk or recorder offers a property fraud alert service, and sign up if it does.
• Search your county's online records every so often to confirm that the deed and any recorded documents under your name look correct.
• Pay attention to unexpected mail about your property, such as notices about loans, taxes or closings you did not start.
• Keep an eye on properties you do not occupy, such as rentals, vacation homes or vacant land.
• If something looks wrong, contact your county recorder's office and local law enforcement right away, and consider speaking with a real estate attorney.
• Be cautious of any unexpected request involving wire transfers or remote closings tied to your property.

Source: Yahoo News