Are ‘House Stealing’ Scams Real? What to Know About Title Lock Services

Recent advertisements have stoked fears of “house stealing,” warning homeowners that criminals can easily forge documents and steal their property. These ads often promote “title lock” services, claiming to monitor your deed and assist in recovery if you become a victim. But how legitimate are these threats, and are title lock services worth the cost?

The Threat of Title Fraud: How Does It Work?

Title fraud, a form of identity theft, occurs when someone fraudulently files a deed with the property recorder in your county, attempting to transfer ownership of your home to themselves. Scammers might then try to secure a mortgage against the property or sell it to an unsuspecting buyer. While alarming, experts say the actual risk of title fraud is relatively low.

Is Title Fraud Really on the Rise?

Some companies claim the FBI has classified title fraud as the fastest-growing white-collar crime in America. Though, recent reports indicate the FBI’s Internet Crime Complaint Center (IC3) does not track title theft as a separate category, instead including it within broader real estate fraud statistics. In 2024, the IC3 received approximately 9,400 fraud claims related to real property and mortgage lending. Even if half of these involved attempted title forgery, the odds of becoming a victim remain around 1 in 20,000.

Who is Most at Risk?

According to a survey by the National Association of Realtors, most title fraud cases involve vacant properties or those with little oversight. Properties without an existing mortgage are also more appealing to fraudsters, as securing financing on an unencumbered title is easier.

What Do Title Lock Services Actually Do?

Despite their marketing, “title lock” services don’t actually “lock” or “insure” your title. They primarily monitor public property databases for changes to your deed and alert you to any filings. Some services offer assistance with filing legal paperwork to rectify fraudulent filings, and may offer limited coverage for legal costs – but typically do not reimburse for financial losses from fraudulent loans or transfers. Experts, like a spokesperson for the National Association of Consumer Advocates, describe these services as “a product in search of a problem to solve.”

Can a Fraudulent Deed Actually Steal Your House?

Legally, a forged mortgage document does not create a valid obligation, and a fraudulent deed does not transfer ownership. The fraudulent title is void. However, if the fraud goes undetected for a significant period, it can create legal complications and potentially require costly litigation to resolve.

Protecting Your Property: Free and Low-Cost Options

• Property Fraud Alerts: Many counties offer free services to notify you of changes to your property record. For example, Hamilton County, Tennessee, provides a property fraud alert service.
• Monitor Bills and Notices: Regularly check your mail and email for property tax statements and other official correspondence.
• Search County Records: Periodically search the county database for your property address to verify the recorded information.
• Credit Freezes: Freeze your credit files with Equifax, TransUnion, and Experian to prevent anyone from applying for loans in your name.
• Annual Credit Report Review: Obtain and review your credit reports annually at AnnualCreditReport.com for any unusual activity.

If You Suspect Title Fraud

If you detect suspicious activity, immediately report it to local law enforcement and contact your county’s Register of Deeds for a copy of the record.

While the risk of title fraud is statistically low, proactive measures can provide peace of mind. Weigh the cost of title lock services against the free and low-cost alternatives, and understand what these companies can and cannot do.