Episode Transcript
[00:00:00] Speaker A: Hey, folks.
Miles here.
And let me tell you, today's episode of behind the Scams might just leave you double checking your property records.
You fly home to visit an old friend, take a nostalgic drive through your childhood neighborhood, and when you pull up to that vacant piece of land you've owned for decades, there's a luxury home halfway built on it.
Only problem, you never sold it.
That's exactly what happened to Daniel from Fairfield, Connecticut. And what unravels next is one of the boldest and most emotionally devastating scams we've ever covered on this podcast. In today's episode, Nick and Sue, walk us through the twisted world of property deed fraud.
How scammers impersonate property owners, forge documents, bypass antiquated recording systems, and leave innocent people like Daniel fighting tooth and nail just to reclaim what's rightfully theirs.
It's a jaw dropping story of identity theft, legal limbo, and a justice system that too often favors bureaucracy over truth. So stick around because you're about to learn how this scam happened, how to protect yourself, and what the real toll looks like when your past, present, and future are all stolen with one forged signature.
Let's dive in.
Nick and sue, take it away.
[00:01:37] Speaker B: Thank you, Miles. Hello and welcome back to another episode of behind the Scams. I'm your host, sue, and as always, I'm joined by my husband and co host, Nick.
[00:01:48] Speaker C: Thank you, Sue.
[00:01:48] Speaker B: Thank you.
[00:01:49] Speaker C: So happy to be here. We got another great podcast episode for our listeners.
[00:01:53] Speaker B: We sure do, Nick. And this one is fascinating, especially for anyone who owns real property and felt comfortable it could never be sold out from underneath them.
Nick, you and I have both owned pieces of real estate throughout our lives.
In fact, I have owned a vacant piece of land, just like in this story.
But can you imagine the shock that a man endured when a plot of land that was essentially his childhood backyard and he returns to visit a sick friend? He is shocked to find that a developer has cleared the trees and is halfway through building a luxury home on his property.
But how could something like this happen when the land was never up for sale?
[00:02:41] Speaker C: That's absolutely mind boggling, Sue. I mean, imagine coming back to your hometown and finding someone building on land you still legally own.
It sounds like something from a nightmare.
You know, Sue, I am a licensed real estate agent in California.
I don't use the license to buy or sell real estate. I got my license to help others in our battle against fraud.
Even with my extensive real estate knowledge, it boggles my mind on how these scammers were Able to pull this scam off.
[00:03:16] Speaker B: It really is quite crazy how they pulled this off and the victim. In our story today, Daniel, from Fairfield, Connecticut, experienced exactly that. A total nightmare. He no longer lived in his hometown, but he still owned this plot of land that held significant childhood memories for him.
[00:03:37] Speaker C: And he never put it up for sale, right? Never even considered selling it?
[00:03:41] Speaker B: Not at all. The land was never on the market, yet somehow a criminal with forged documents managed to impersonate Daniel and complete the sale without Daniel having any knowledge whatsoever.
[00:03:56] Speaker C: The tactics and strategies in today's podcast episode shows how scammers use psychological games to deceive and how they are able to fool most people.
So, sue, let's get into this one.
[00:04:08] Speaker B: So let's dive deeper into Daniel's story. Daniel grew up in Fairfield, Connecticut, A beautiful coastal town about 60 miles from New York City.
His parents owned a larger property that included their home and an adjacent undeveloped lot that essentially served as Daniel's extended backyard growing up.
[00:04:30] Speaker C: I'm guessing that land had a lot of sentimental value for him.
[00:04:33] Speaker B: Absolutely. Daniel spent countless hours playing in those woods as a kid, building forts, exploring nature, all those childhood adventures that shape us. When his parents passed away, he inherited both properties, but decided to sell the main house while keeping the undeveloped lot.
[00:04:54] Speaker C: That makes sense. A lot of people hold onto land as an investment or for sentimental reasons. So he moved away but kept the vacant land.
[00:05:03] Speaker B: Exactly. Daniel moved to Seattle for work about 15 years ago, but he maintained ownership of that property. He paid the property taxes every year, kept everything in good standing. The land was heavily wooded, about an acre in size, and he occasionally thought about building a vacation home there someday, or perhaps selling it when he retired.
[00:05:26] Speaker C: So how did he discover what happened? You mentioned he was visiting a sick friend.
[00:05:30] Speaker B: That's right. Last year, Daniel flew back to Connecticut because his childhood friend was battling cancer.
During this visit, he decided to drive by his old neighborhood, Partly for nostalgia and partly to check on his property.
[00:05:45] Speaker C: I can already feel where this is going.
[00:05:47] Speaker B: When he turned onto his old street, he couldn't believe his eyes.
The trees, all of them, had been cleared. The entire lot was transformed into a construction site with a half built luxury home right in the middle of what used to be his wooded retreat.
[00:06:05] Speaker C: Oh, wow. I can't even imagine that moment. What did he do?
[00:06:08] Speaker B: At first, he thought he must have made a mistake. Maybe he was on the wrong street or looking at the wrong lot. But no, this was definitely his property. He immediately pulled over completely in shock.
[00:06:21] Speaker C: That's absolutely surreal. Like waking up to Find someone cooking breakfast in your kitchen.
[00:06:26] Speaker B: That's a good analogy, Nick. Daniel approached one of the construction workers and explained that he was the owner of the property. The worker looked confused and called the foreman, who informed Daniel that they were building a custom home for a development company that had purchased the land six months earlier.
[00:06:45] Speaker C: So in his mind, he's thinking, but I never sold this land. Right?
[00:06:49] Speaker B: Exactly. Daniel was insistent. There must be some mistake. He pulled up his property tax records on his phone to prove he was the owner. But the foreman showed him their building permits and legal paperwork authorizing the construction.
[00:07:04] Speaker C: So both parties had documentation claiming ownership. That's where things get really complicated.
[00:07:10] Speaker B: Precisely.
Daniel immediately called his attorney back in Seattle, who advised him to file a police report immediately and contact the county recorder's office.
When he did, what he discovered was truly shocking.
Someone had filed a deed transfer on his property about eight months earlier. The paperwork showed that Daniel had sold the property to a company called Fairfield luxury developments for 375,000.
[00:07:39] Speaker C: But he never received that money, right?
[00:07:42] Speaker B: Not a penny. And he certainly never signed any paperwork. The signature on the deed transfer was a forgery. The notary stamp appeared legitimate, but as the investigation would later reveal, it was also fraudulent.
[00:07:57] Speaker C: This is terrifying stuff, Sue. I mean, as someone with a background in financial crime investigation, I've seen a lot of schemes, but the boldness of this one is remarkable.
[00:08:07] Speaker B: What made it even worse for Daniel was seeing the construction already so far along. The foundation was complete, framing was up, and windows were being installed on what was going to be a 3,500square foot luxury home that would eventually sell for over a million dollars.
[00:08:26] Speaker C: So not only was his land stolen, but significant investment had already gone into developing it.
That's a complex situation, legally, isn't it?
[00:08:35] Speaker B: Incredibly complex. And that's where Daniel's nightmare was only beginning. Because now he wasn't just fighting to prove the land was stolen. He was facing the reality that an innocent developer had invested hundreds of thousands of dollars building on land they thought they legally purchased.
[00:08:56] Speaker C: So, Sue, I think our listeners are probably wondering how something like this could even happen. And can you walk us through how property deed fraud actually works?
[00:09:06] Speaker B: Sure, Nick. At its core, property deed fraud, sometimes called house stealing, is surprisingly simple in concept, but devastating in impact.
Essentially, criminals forge documents to make it appear that the actual property owner has transferred or sold their property to someone else. In this case, to a development company.
[00:09:30] Speaker C: But wait, doesn't transferring property require a lot of paperwork and verification?
How do they get around all those safeguards?
[00:09:39] Speaker B: You'd think so. But the reality is our property recording system in the United States has a fundamental vulnerability.
It's largely based on an honor system.
County clerks and recorders typically don't have the authority or capacity to verify that documents submitted for recording are legitimate.
[00:10:00] Speaker C: Really? They don't check signatures or verify identity?
[00:10:03] Speaker B: That's the shocking part. In most counties, the recorder's office is simply responsible for maintaining records, not authenticating them. Their job is to file what's submitted, not investigate it. So if someone presents what appears to be a properly executed deed with signatures that look legitimate, it generally gets recorded.
[00:10:27] Speaker C: That seems like a massive loophole. So these scammers just forge signatures and submit fake documents?
[00:10:34] Speaker B: Exactly. They typically create counterfeit deeds, forge the property owner's signature, and even fake notary stamps. Which is exactly what happened in Daniel's case. Once they have those documents, they simply file them with the county recorder's office.
[00:10:52] Speaker C: And no one catches this. It sounds almost too easy. In my 25 years investigating financial crimes, I've seen how criminals constantly exploit systems built on trust. The recording system was designed hundreds of years ago, when communities were smaller and people knew each other. It wasn't built to withstand modern identity theft techniques. So what happens after they file these fake documents?
[00:11:18] Speaker B: Once the fraudulent deed is recorded, it creates what appears to be a legitimate chain of title. The criminal now appears to be the legal owner of the property. They can then sell it to an unsuspecting buyer, like that development company in Daniel's case. Or even take out loans using the property as collateral.
[00:11:40] Speaker C: Oh, that's another angle I hadn't considered. They could potentially get loans against property they don't actually own.
[00:11:47] Speaker B: Absolutely. Some criminals don't even bother selling the property. They just use it to secure loans. Or walk away with the cash and leave the real owner to deal with the fallout.
[00:11:57] Speaker C: This is terrifying. So, if I understand correctly, the scammer who targeted Daniel likely researched him, discovered he lived out of state, and saw an opportunity with this vacant land.
[00:12:09] Speaker B: That's typically how it works. They look for vulnerable properties, especially vacant lots or second homes where the owner isn't physically present.
Absentee owners like Daniel are prime targets because they might not notice what's happening until it's too late.
[00:12:25] Speaker C: And they actually impersonate the owner. Like show up in person pretending to be Daniel?
[00:12:30] Speaker B: Yes, and that's where identity theft comes into play. They might create fake IDs in the victim's name or use stolen personal information.
Some scammers even research their victims on social media to learn personal Details that make their impersonation more convinc convincing.
[00:12:51] Speaker C: But what about the notary? Isn't that supposed to be a safeguard?
[00:12:54] Speaker B: It should be, but there are ways around that, too. Sometimes they use completely fake notary stamps. Other times, they might find corrupt notaries willing to participate in the scheme. And in some cases, they trick legitimate notaries using fake identification.
[00:13:11] Speaker C: I'm just thinking about how easily this could happen to anyone. I own a vacant piece of land myself, and I only visited a couple times a year.
How would I even know if someone filed fraudulent documents?
[00:13:26] Speaker B: So this isn't just some opportunistic crime. It's calculated and organized.
[00:13:30] Speaker C: Very much so. And what's particularly insidious is how these groups target vulnerable properties and owners.
They look for vacant land, properties in probate, homes of elderly owners who might be in care facilities or. Or properties owned by people living far away.
Exactly like Daniel's situation.
[00:13:51] Speaker B: I'm thinking about how Daniel must have felt when he realized not only was his property stolen, but his entire identity had been hijacked to make it happen. The psychological impact is devastating. It's not just the financial loss, though, that's significant.
It's the violation of having your identity, your signature, your very legal existence manipulated. Many victims describe it as feeling violated in a deeply personal way.
[00:14:21] Speaker C: It's identity theft, property theft, and fraud all wrapped into one terrible package.
[00:14:27] Speaker B: That's exactly right. And what makes these cases particularly difficult is how they weave together multiple types of crime, crossing jurisdictional boundaries and involving both civil and criminal issues.
This is just shocking. I mean, most of us worry about someone stealing our credit card number or hacking our email, but the idea that someone could literally steal your land by stealing your identity, that's on another level entirely.
[00:14:56] Speaker C: Let's shift gears and talk about the warning signs. What red flags should property owners be watching for to catch this type of fraud before it gets as far as it did with Daniel?
[00:15:06] Speaker B: That's crucial, Nick. Early detection is your best defense. One of the most common warning signs is unexpected mail documents you didn't request about your property.
[00:15:17] Speaker C: Like what, exactly?
[00:15:18] Speaker B: Things like satisfaction of mortgage notices when you haven't paid off your mortgage, property tax bills sent to a different address, or notifications about zoning changes you didn't apply for.
Any Documents suggesting activity on your property that you didn't initiate should raise immediate concerns.
[00:15:38] Speaker C: Oh, that makes sense.
So even junk mail could be important in this case?
[00:15:43] Speaker B: Absolutely. Even what looks like junk mail could be significant.
For example, you might receive congratulatory offers from home improvement companies after A recent property purchase you never made.
These businesses buy customer lists from public records.
[00:16:01] Speaker C: I usually throw those straight into the recycling.
[00:16:04] Speaker B: Many people do, but they can actually be your first clue something's wrong.
Another major red flag is when you stop receiving tax bills or other regular property related mail because the scammer has.
[00:16:17] Speaker C: Changed the mailing address. Exactly.
In one case I heard about, an elderly woman didn't realize her vacation home had been stolen until she hadn't received a tax bill for over a year.
By then, the property had been sold twice.
To me, as a property owner, this type of story is just frightening. So, sue, what about online indicators? Should people be checking something regularly?
[00:16:46] Speaker B: Yes, absolutely. I recommend that all property owners periodically check their property records at their local county recorder's office.
Most counties now have online portals where you can search by name or address.
[00:17:01] Speaker C: How often should people be doing this?
[00:17:03] Speaker B: For your primary residence, checking quarterly is a good practice. For vacant land or investment properties, I'd recommend monthly checks, especially if they're in desirable areas like Daniel's property in Connecticut.
[00:17:16] Speaker C: I'm thinking about all our listeners now who own vacation properties or inherited land. They rarely visit.
Should they be particularly concerned?
[00:17:26] Speaker B: They should definitely be extra vigilant. There are so many of these types of stories, and these types of properties are targeted disproportionately.
In fact, one of the most famous pieces of property in the country, Elvis Presley's Graceland, was targeted by a scammer in a fraud very similar to this.
[00:17:47] Speaker C: That's right. And if I remember correctly, Graceland was almost foreclosed on because of a fraudulent loan filing. Right, Sue?
[00:17:54] Speaker B: That's right, Nick. The foreclosure was eventually blocked by Presley's granddaughter and the scam attempt failed. But it just goes to show that how vulnerable property owners are to frauds and scams.
Nick, another warning sign to watch out for is unexpected visitors to your property or neighbors mentioning strangers examining or photographing your land.
[00:18:18] Speaker C: Like someone posing as a surveyor or inspector.
[00:18:21] Speaker B: Precisely. In a case in Florida, neighbors noticed inspectors at an elderly man's home while he was in the hospital.
They assumed it was legitimate, but these were actually scammers gathering information to create a convincing property transfer.
[00:18:39] Speaker C: Should people talk to their neighbors about watching out for this type of activity?
[00:18:43] Speaker B: Absolutely. Creating a neighborhood watch specifically for property fraud can be incredibly effective.
Let your neighbors know if you'll be away from your property for extended periods and ask the them to alert you to any unusual activity.
[00:19:00] Speaker C: What about financial red flags?
[00:19:01] Speaker B: Watch for unexpected changes in your credit report.
Sometimes these scammers will take out small loans in your name first to test if your identity is being monitored. Also, be suspicious of unexpected calls verifying your property details or offering to buy your property out of the blue.
[00:19:22] Speaker C: I've gotten those calls. We're interested in buying your house type of calls.
[00:19:26] Speaker B: Most of those are legitimate real estate prospectors, but scammers use the same approach.
The difference is scammers will quickly start asking for confirming information like your date of birth or last four of your ssn, supposedly to verify they're talking to the right owner.
[00:19:48] Speaker C: So they're fishing for identity verification while pretending to make an offer.
[00:19:53] Speaker B: Exactly. It's a clever social engineering tactic. Another warning sign we haven't mentioned is unexpected liens appearing on your property.
[00:20:02] Speaker C: How would someone know if there's a lien on their property that would show.
[00:20:06] Speaker B: Up in those periodic property record checks I mentioned? Scammers sometimes place fraudulent liens as a first step step then use those to create a paper trail they can leverage later for a full property theft.
[00:20:20] Speaker C: This is all so sneaky and calculated. Any other warning signs people should know about?
[00:20:25] Speaker B: Yes, one more critical one. If you receive notification about a probate proceeding involving your property when no one has died, that's a major red flag.
[00:20:36] Speaker C: It sure is, because some fraudsters will fabricate death certificates for property owners, then initiate probate proceedings to transfer the property to themselves as heirs.
[00:20:49] Speaker B: They fake your death? That's beyond disturbing.
[00:20:51] Speaker C: I know it sounds like something from a movie, but I've seen it happen multiple times.
In one case, a woman in Arizona discovered she was legally dead when she tried to refinance her home.
[00:21:04] Speaker B: I'm speechless. These scammers really will try anything?
[00:21:08] Speaker C: They will.
That's why constant vigilance is so important, Especially for properties you don't visit regularly.
[00:21:15] Speaker B: All right, Nick, now that we understand the warning signs, let's get into the nitty gritty. What happens legally when someone like Daniel discovers their property has been fraudulently sold?
[00:21:27] Speaker C: Well, sue, this is where things get really complicated and frankly, quite devastating for victims.
When Daniel discovered that luxury home being built on his land, he was entering what would likely become a years long legal nightmare.
[00:21:43] Speaker B: Years, really? But it seems so straightforward. It's his property that was stolen.
[00:21:48] Speaker C: That's what most victims think. But the reality is much more complex. In our legal system, once a deed has been recorded with the county, there's a presumption of validity. Daniel essentially has to prove a negative that he didn't sell his own property.
[00:22:04] Speaker B: That seems completely backward. The burden of proof should be on the developer or the person who bought the property, right?
[00:22:11] Speaker C: You'd think so, but that's not how our property laws work.
Remember, these property laws were established centuries ago, long before identity theft was a concern.
The system was designed to promote certainty in real estate transactions, not to protect against sophisticated modern fraud.
[00:22:32] Speaker B: So what's the first thing someone like Daniel needs to do?
[00:22:35] Speaker C: Immediately hire an attorney specializing in real estate fraud. And I mean immediately. Like the same day you discover the fraud?
Every day that passes potentially strengthens the position of the new owner.
[00:22:48] Speaker B: Is this expensive? I'm thinking about our listeners who might face this situation.
[00:22:53] Speaker C: It's extremely expensive.
Legal fees in these cases can easily reach 50,000 to 100,000. And there's no guarantee of success.
Many victims have to take out loans or second mortgages on other properties they own just to fund the legal battle.
[00:23:10] Speaker B: That's outrageous. They're victimized twice. Once by the scammer and then by the legal system that forces them to spend a fortune to reclaim what's rightfully theirs.
[00:23:21] Speaker C: Exactly. And here's where it gets even more complicated. While this legal battle is happening, the construction on the property often continues.
In Daniel's case, by the time he filed his lawsuit, that luxury home was nearly complete.
[00:23:38] Speaker B: Wait. The courts don't order construction to stop while they figure out who rightfully owns the land.
[00:23:44] Speaker C: Sometimes they do issue temporary injunctions, but it's not automatic.
The developer will argue they've invested millions in good faith and stopping construction would cause irreparable financial harm.
It becomes a balancing test for the judge.
[00:24:03] Speaker B: This is just unbelievable. So what kind of evidence does someone like Daniel need to prove the fraud?
[00:24:09] Speaker C: They need to establish they were nowhere near the closing, didn't sign the documents, and didn't receive any proceeds from the sale.
They often need handwriting experts to testify about forged signatures, witnesses to confirm their whereabouts on the date of the supposed sale, and evidence that the ID used at closing wasn't actually them.
[00:24:31] Speaker B: I'm guessing most people don't have alibis for random dates, months in the past.
[00:24:35] Speaker C: That's exactly right, Sue. In one case I worked on, the victim was actually on an international cruise when the fraudulent closing supposedly took place.
And he still had all his boarding passes and photos with timestamps. That was exceptional evidence. But most victims don't have that kind of ironclad proof.
[00:24:55] Speaker B: What about title insurance? Doesn't that protect against this type of fraud?
[00:24:59] Speaker C: That's a great question.
Title insurance typically protects the buyer, not the seller.
So in this case, it might actually be protecting the developer who Unknowingly purchased the fraudulently obtained property.
For original owners like Daniel, Their title insurance likely expired when they paid off their mortgage.
Or in the case of vacant land, they might never have had it at all.
[00:25:24] Speaker B: So the title insurance company might actually be fighting against daniel?
[00:25:29] Speaker C: Unfortunately, yes.
They're obligated to defend the current policyholder, the developer, against claims like Daniel's.
It creates this bizarre situation where massive insurance companies with deep pockets Are essentially working against fraud victims.
[00:25:47] Speaker B: What about criminal charges against the scammer? Doesn't that help Daniel's case?
[00:25:51] Speaker C: It helps, but criminal and civil cases proceed independently.
Even if the scammer is caught and convicted, which is rare because they're often using stolen identities themselves and and may be operating from overseas, that doesn't automatically restore Daniel's property rights.
[00:26:11] Speaker B: The emotional toll of all this must be enormous.
[00:26:14] Speaker C: It's devastating.
Beyond the financial stress, Victims experience profound psychological trauma.
Imagine driving by what was once your property, Seeing strangers living in a house built on land that was stolen from you.
Many victims report symptoms similar to PTSD.
[00:26:35] Speaker B: I can imagine. During your 25 years investigating financial crimes, did you see this kind of toll on victims?
[00:26:42] Speaker C: Absolutely. I remember one victim, an elderly woman in her 80s, who had owned a piece of rural property for over 60 years.
It was the last physical connection to her late husband when it was stolen and developed. She actually had a stroke that her doctors attributed partially to the stress of the legal battle.
[00:27:04] Speaker B: That's heartbreaking. What about the statutes of limitations? Is there a clock ticking on how long Daniel has to resolve this?
[00:27:12] Speaker C: Yes, and that adds even more pressure. Depending on the state, victims typically have between two to five years from when they discovered the fraud to bring their case. But here's the catch. Courts will often rule that victims should have discovered the fraud earlier if they had been checking their property records regularly.
[00:27:34] Speaker B: So they blame the victim for not being vigilant enough?
[00:27:37] Speaker C: In some cases, yes.
I've seen courts rule that property owners had a duty to check their records and that the statute of limitations started running from when the fraudulent deed was recorded, not from when the victim actually discovered it.
[00:27:55] Speaker B: This is so unfair. It sounds like the entire system is stacked against victims like Daniel.
[00:27:59] Speaker C: The system wasn't designed for this type of crime. It was built on the assumption that property transfers involve face to face transactions with notaries and witnesses.
As fraud has evolved, the legal system has struggled to keep pace.
[00:28:16] Speaker B: So what's the bottom line here? Do victims like Daniel usually get their property back?
[00:28:21] Speaker C: It varies widely by jurisdiction and the specific facts of each case.
Some Victims do prevail, especially if they act quickly and have strong evidence.
Others end up settling for monetary compensation that's often far less than the true value of their property. And sadly, some lose everything.
[00:28:44] Speaker B: This really highlights why prevention is so crucial. It seems much easier to prevent this fraud than to undo it after the fact.
[00:28:53] Speaker C: Absolutely. An ounce of prevention is worth a ton of legal remedies in these cases.
[00:28:58] Speaker B: So, Nick, we've been talking about Daniel and other victims of property deed fraud, but let's shift perspectives for a moment. The developer who bought Daniel's land and started building that luxury home, they're caught in this mess too, right?
[00:29:12] Speaker C: Absolutely, Sue. That's an important point that often gets overlooked in these cases. The developer who purchased Daniel's property almost certainly had no idea they were buying fraudulently obtained land.
[00:29:25] Speaker B: So they're victims too, in a way.
[00:29:27] Speaker C: Exactly. They likely paid fair market value, conducted what they thought was proper due diligence, and proceeded in good faith.
Now they've invested potentially hundreds of thousands or even millions of dollars into purchasing the land and beginning construction, only to find out the entire transaction was based on fraud.
[00:29:50] Speaker B: That puts the courts in a really difficult position, doesn't it? You have two innocent parties, the original owner and the developer who bought the land in good faith.
[00:30:00] Speaker C: That's one of the most challenging aspects of these cases.
The legal system has to decide whose rights take precedence when both parties are victims of the same scam.
This is where the legal concept of a bona fide purchaser comes into play.
[00:30:17] Speaker B: What exactly does that mean? Bona fide purchaser?
[00:30:20] Speaker C: A bona fide purchaser is someone who buys property in good faith, pays fair market value, and has no knowledge or reason to know of any problems with the title. Under traditional property law, these purchasers receive special protections.
[00:30:37] Speaker B: So if the developer qualifies as a bonafide purchaser, they might actually have legal rights to keep the property even though it was fraudulently obtained.
[00:30:47] Speaker C: That's correct. And it's one of the most heart wrenching aspects of these cases.
In some jurisdictions, a truly innocent purchaser who had no way of knowing about the fraud can retain ownership of the property, leaving the original owner with only monetary damages against the scammer, who is usually long gone.
[00:31:08] Speaker B: That seems incredibly unfair to the original owner.
[00:31:11] Speaker C: It does feel unfair, and that's why these cases are so complex.
Courts are essentially forced to choose which innocent party should bear the loss.
During my years in law enforcement, I saw judges agonize over these decisions.
[00:31:26] Speaker B: So what factors do courts consider when deciding between the original owner and the developer.
[00:31:31] Speaker C: They look at several things. Did the developer follow all standard practices in their due diligence? Did the original owner take reasonable steps to protect their property? Was there anything unusual about the transaction that should have raised red flags for the developer or or their title company?
[00:31:51] Speaker B: I imagine the developer's title insurance comes into play here too.
[00:31:54] Speaker C: Absolutely.
Developers almost always have title insurance, which means there's a deep pocketed insurance company motivated to protect their clients interest in the property.
These companies have experienced legal teams who will vigorously defend the developer's claim.
[00:32:15] Speaker B: So the title insurance company might argue that their client, the developer, did everything by the book and shouldn't be punished for a fraud they couldn't have detected.
[00:32:24] Speaker C: Precisely. They'll argue that their client relied on county records, verified identification that appeared legitimate, and followed all standard industry practices.
They'll present the developer as the epitome of a bona fide purchaser who who deserves protection under the law.
[00:32:44] Speaker B: But couldn't you argue that the developers should have more rigorous verification processes, especially for vacant land purchases where the seller isn't physically present?
[00:32:56] Speaker C: That's often the argument made by the original owner's legal team.
They'll claim that developers and title companies should have heightened scrutiny, particularly in transactions that have certain risk factors.
Like an absentee owner selling vacant land at a price below market value.
[00:33:14] Speaker B: I'm curious, from your experience, do most developers have additional verification steps beyond what's legally required?
[00:33:21] Speaker C: It varies widely. Some developers, especially after being burned once by fraud, implement extra verification steps. They might insist on meeting sellers in person, conduct more thorough background checks, or call phone numbers that were on record before the property was listed for sale, not just the contact info provided during the transaction.
[00:33:43] Speaker B: Those sound like reasonable precautions.
[00:33:46] Speaker C: They are, but they're not standard practice across the industry. And even these extra steps might not catch a sophisticated scammer who has done their homework.
This reminds me of something we discussed in our romance scam episode, how criminals exploit our trust in established systems.
[00:34:06] Speaker B: Great observation, Nick. That's exactly what's happening here. Both property owners and developers place enormous trust in our property recording system. And scammers exploit that trust. They know most people believe that if a document looks official and has been recorded with the county, it must be be legitimate. Do developers ever try to reach out directly to the original owners after discovering the fraud?
[00:34:34] Speaker C: Sometimes they do, hoping for an amicable resolution.
I've seen cases where developers offer to purchase the property again at a fair price or offer some form of profit sharing from the development.
But often by the time the fraud is discovered, Positions have hardened and everything moves to the legal system.
[00:34:54] Speaker B: I imagine there's a lot of finger pointing when these cases come to light.
[00:34:58] Speaker C: Oh, there's a circular firing squad of blame.
The developer blames the title company, the title company blames the notary, the notary blames the county recorder's office, and everyone blames the scammer who is usually nowhere to be found.
[00:35:15] Speaker B: What a mess. And all because our property recording system wasn't designed to handle modern identity theft.
[00:35:22] Speaker C: That's exactly right.
Our property system was designed centuries ago when transactions happened face to face in small communities where everyone knew each other. It wasn't built for a digital world where identities can be stolen and documents forged with sophisticated technology.
[00:35:43] Speaker B: It sounds like the developer is in a no win situation too. Even if they legally prevail, they they've got serious problems.
[00:35:51] Speaker C: Absolutely. Even if they win in court, they now own property with a clouded title, meaning there's a recorded legal dispute about ownership. This can make it difficult to sell the property in the future or obtain financing.
Plus there's the public relations aspect.
Many developers don't want to be seen as taking property from a sympathetic victim, even if they have legal grounds to do so.
Not to mention the delays and extra costs from all the legal proceedings.
[00:36:24] Speaker B: Exactly. Between legal fees, construction delays, and potential redesigns, if they can only keep part of the property, the developer might end up losing money on the project, even if they win the case.
So after hearing all of these heartbreaking stories about property fraud, I think our listeners are probably anxious to know how they can protect themselves.
Nick, what can property owners do to prevent becoming victims of deed fraud?
[00:36:52] Speaker C: That's a great question, Sue.
The good news is there are several proactive steps property owners can take.
First and foremost, I'd recommend regularly checking your property records with your local county recorder's office.
[00:37:09] Speaker B: How often should people be doing these checks?
[00:37:11] Speaker C: At minimum, I'd say quarterly. But monthly is even better.
Many county recorder offices now have online portals where you can search property records using your name or property address.
It only takes a few minutes, and it could save you years of legal headaches.
[00:37:30] Speaker B: What exactly are property owners looking for when they check these records?
[00:37:34] Speaker C: You're looking for any documents you don't recognize.
Deeds, liens, mortgages, or anything else recorded against your property that you didn't authorize.
The earlier you catch something suspicious, the easier it is to address.
[00:37:50] Speaker B: I've heard about something called title monitoring services. Are those worth considering?
[00:37:55] Speaker C: Absolutely. Title monitoring services are like credit monitoring, but for your property. They'll track your property records and alert you when any changes are made.
These services typically cost between 75 and $200 per year, depending on the level of service.
[00:38:13] Speaker B: That seems like a small price to pay for peace of mind, especially compared to the thousands or even hundreds of thousands it might cost to fight a fraudulent property transfer.
[00:38:24] Speaker C: Exactly.
During my years investigating financial crimes, I saw many cases where early detection made all the difference.
It's much easier to stop a fraudulent deed before the property changes hands than to undo a completed transaction.
[00:38:40] Speaker B: Let's shift gears slightly and talk about the technological aspect of all this. It seems like technology is playing a dual role in property fraud, both enabling scammers and potentially helping to prevent these crimes.
[00:38:55] Speaker C: That's absolutely right, Sue. Technology has created new vulnerabilities, but also new solutions. On the scammer side, they're using increasingly sophisticated digital tools to create convincing forgeries of IDs, notary stamps, and property documents.
[00:39:13] Speaker B: I imagine the quality of these forgeries makes detection much harder than it used to be.
[00:39:18] Speaker C: Exactly 20 years ago, a forged document might have had obvious flaws that a trained eye could spot.
Today, with high quality printers, image editing software, and even AI tools, forgeries can be nearly indistinguishable from legitimate documents.
[00:39:35] Speaker B: That's terrifying. And I imagine online access to property records makes it easier for scammers to get the information they need.
[00:39:44] Speaker C: Unfortunately, yes.
While online access is convenient for legitimate users, it also gives potential fraudsters easy access to property details, owner information, and document templates.
They can study these documents and then create convincing forgeries without ever setting foot in a government office.
[00:40:05] Speaker B: So what about the flip side? How is technology being used to fight back against these scams?
[00:40:10] Speaker C: This is where things get interesting.
Several counties are implementing advanced verification systems. For example, some are using biometric verification, like fingerprints or facial recognition to confirm the identity of people filing property documents.
[00:40:29] Speaker B: Oh, wow. Like something out of a spy movie. Is that actually being used right now?
[00:40:33] Speaker C: It is in some jurisdictions. And beyond biometrics, there's a really promising technology that I've been following closely.
Blockchain.
[00:40:43] Speaker B: Blockchain. Like what's used for cryptocurrency. How does that help with property records?
[00:40:48] Speaker C: Great question.
Blockchain creates an immutable, transparent record of transactions. If property records were stored on a blockchain, any attempt to alter them would be immediately visible to all participants in the system.
It would be nearly impossible to forge a deed or title transfer without detection.
[00:41:10] Speaker B: That sounds promising, but is this actually happening anywhere?
[00:41:14] Speaker C: Several counties in the US Are running pilot programs. Cook county in Illinois was one of the first to test blockchain for property records.
There are also international examples. Georgia, the country, not the state, has moved its entire land registry to a blockchain system and has seen fraud rates plummet.
[00:41:35] Speaker B: I have to ask, with your 25 years in financial crime investigation, do you think blockchain is the answer to this problem?
[00:41:43] Speaker C: I think it's one of the most promising solutions we've seen.
The challenge is implementation.
Our property recording system is fragmented across thousands of county offices, each with their own processes and technology standards.
Transitioning all of these to a blockchain system would be a massive undertaking.
[00:42:08] Speaker B: What about digital notarization? I've heard that's becoming more common.
[00:42:12] Speaker C: Yes, remote online notarization is gradually being authorized in more states.
It allows notaries to verify identities and documents virtually, often with more stringent verification than traditional in person notarization.
[00:42:27] Speaker B: How does that work exactly?
[00:42:29] Speaker C: Typically the person needs to answer knowledge based authentication questions, show their ID on camera, and sometimes complete a biometric verification.
The entire session is recorded and stored, creating a strong audit trail that can be reviewed if fraud is suspected later.
[00:42:48] Speaker B: That sounds more secure than a quick signature at a notary office where they might just glance at your driver's license.
[00:42:55] Speaker C: Exactly. And some companies are developing AI systems to detect suspicious patterns in property transactions.
These systems can flag unusual activity like multiple transfers of the same property in a short period or deeds filed by individuals with no previous connection to the property.
[00:43:15] Speaker B: So it's like fraud detection for your credit card, but for property transactions.
[00:43:19] Speaker C: That's a perfect analogy. Just like your credit card company might call you about a suspicious purchase.
[00:43:25] Speaker B: This.
[00:43:26] Speaker C: These systems could trigger additional verification steps when something doesn't look right with a property transfer.
[00:43:33] Speaker B: What about the actual verification of documents themselves? Any advancements there?
[00:43:38] Speaker C: Yes. There are new document authentication technologies using cryptographic signatures that make it virtually impossible to forge documents.
Essentially, each document gets a unique digital fingerprint that can be verified against a secure database.
[00:43:56] Speaker B: It sounds like there are a lot of promising technologies. Why aren't they being implemented faster?
[00:44:01] Speaker C: It comes down to resources and priorities.
Many county recorder offices are operating on tight budgets with outdated technology.
Implementing these advanced systems requires significant investment in both technology and training.
[00:44:17] Speaker B: And I imagine there are privacy concerns too.
[00:44:20] Speaker C: Absolutely. There's a delicate balance between security and privacy. Making property records more secure often means collecting more personal information from property owners, which raises legitimate privacy concerns.
[00:44:36] Speaker B: So what can our listeners do while waiting for these technologies to become more widespread?
[00:44:41] Speaker C: The most tech savvy solution available right now is signing up for digital monitoring services.
Companies like CoreLogic and others offer real time alerts when documents are filed against your property. It's essentially putting technology to work for you as an early warning system.
[00:45:00] Speaker B: So, Nick, let's talk about how the real estate industry itself is responding to these property fraud threats. Are they taking this seriously?
[00:45:08] Speaker C: They absolutely are, Sue. The national association of Realtors has really stepped up their game in recent years.
They've developed comprehensive training programs to help real estate professionals identify the warning signs of deed fraud.
[00:45:25] Speaker B: That's good to hear. I imagine real estate agents are often on the front lines of potentially spotting these scams, right?
[00:45:32] Speaker C: Exactly. A good Realtor who knows their market might notice something fear fishy about a property transaction. Like if someone's selling a property well below market value and pushing for a quick cash sale. That could raise red flags.
[00:45:48] Speaker B: What specific changes are you seeing in how transactions are handled?
[00:45:52] Speaker C: One of the biggest shifts is in identity verification.
Many brokerages now require multiple forms of id, not just a driver's license. Some are implementing in person verification requirements for sellers, especially for properties that seem high risk, like vacant land or homes owned by people who live out of state.
[00:46:13] Speaker B: Out of state owners like Daniel in our story?
[00:46:15] Speaker C: Precisely. And title companies are enhancing their verification procedures. Too many now conduct additional ownership searches beyond the standard title search, looking specifically for recent suspicious transfers or links.
[00:46:32] Speaker B: Are they using any technology solutions like the ones we just discussed?
[00:46:36] Speaker C: Yes. Many title companies are investing in advanced document verification systems. Some are using AI to scan documents for inconsistencies or signs of manipulation.
[00:46:47] Speaker B: Others are implementing secure digital closing platforms that create an encrypted audit trail for every transaction.
[00:46:53] Speaker C: But wait, wouldn't these extra steps slow down closings?
I know from our own experience buying homes that everyone, the buyer, the seller, the agents, everyone wants to close as quickly as possible.
[00:47:09] Speaker B: That's the challenge, isn't it? There's always tension between security and convenience. But I think the industry is starting to recognize that an extra day or two of verification is worth it to prevent catastrophic fraud.
[00:47:24] Speaker C: Sue, in your research for this episode, did you find out if there are any industry wide standards being developed?
[00:47:30] Speaker B: I sure did. In fact, the American Land Title association has been working on best practices guidelines for preventing deed fraud. They're not mandatory, but many title companies are voluntarily adopting them. And we're seeing more collaboration between real estate boards, title associations and mortgage lenders to create coordinated approaches.
[00:47:54] Speaker C: What about changes at the regulatory level? Are there new laws being considered?
[00:47:59] Speaker B: This is where we're seeing some of the most promising developments. Several states have passed or are considering Legislation specifically addressing deed fraud. For example, New York passed a law requiring the county clerk to notify homeowners whenever a deed or mortgage is recorded.
[00:48:19] Speaker C: Oh, that would have helped Daniel tremendously.
[00:48:22] Speaker B: Absolutely. Illinois has a similar notification requirement and also created a property fraud alert system that property owners can sign up for. And California recently strengthened its notary requirements for real estate transactions.
[00:48:40] Speaker C: Are there any federal efforts underway?
[00:48:42] Speaker B: There have been some discussions at the federal level, but property laws are typically stated state and local matters. However, the FBI and Department of justice have increased resources for investigating and prosecuting these crimes, which is encouraging.
[00:48:58] Speaker C: Sue, in your opinion, do you think these regulatory changes will make a difference?
[00:49:02] Speaker B: I do. Especially the notification requirements. They're simple but effective. If Daniel had received an automatic notification when that fraudulent deed was found filed, he could have taken action immediately before construction even began on his property.
[00:49:19] Speaker C: That makes a lot of sense. What about the escrow process? That's where the money changes hands, right?
[00:49:24] Speaker B: Yes, and that's another area. Seeing enhanced security measures, many escrow companies now verify wiring instructions through multiple channels and use secure platforms for fund transfers to prevent wire fraud, which often accompanies deed fraud.
[00:49:45] Speaker C: I've heard horror stories about people having their entire down payment stolen through fraudulent wiring instructions.
[00:49:51] Speaker B: It happens more often than you'd think.
That's why some companies are now requiring in person verification of wire instructions or using multi factor authentication system before transferring large sums.
[00:50:07] Speaker C: Are real estate agents and brokers getting better training on these issues?
[00:50:11] Speaker B: Definitely. Many state licensing boards now require continuing education on fraud prevention. The California association of Realtors, for example, offers a specific course on deed fraud and identity theft protection in real estate transactions.
[00:50:29] Speaker C: What about for the everyday homeowner?
Are there resources available to them?
[00:50:34] Speaker B: The good news is that real estate industry groups are increasingly focused on consumer education.
The national association of Realtors has created homeowner guides about property fraud, and many local realtor associations host community workshops on protecting your property.
[00:50:56] Speaker C: That's encouraging.
It seems like the industry is taking this threat seriously and making meaningful changes.
[00:51:02] Speaker B: They are, though there's still a long way to go. The challenge is that these reforms are happening piecemeal across different states and counties. What we really need is a comprehensive, nationwide approach to property security.
[00:51:18] Speaker C: Well, it sounds like we're moving in the right direction, even if progress is slower than we'd like to. Do you think the real estate industry will eventually solve this problem?
[00:51:28] Speaker B: I'm cautiously optimistic. The financial incentives are certainly there. No one in the legitimate real estate industry wants these frauds to continue.
They damage consumer confidence and Create massive liability issues.
So there's real motivation to find solutions.
[00:51:47] Speaker C: So, sue, let's circle back to Daniel's story.
After that shocking discovery of construction on his land, he had quite the legal battle ahead of him. I've been following his case, and I have to tell you, it's been anything but straightforward.
[00:52:03] Speaker B: I can only imagine what was his first step after discovering someone had essentially stolen his land.
[00:52:09] Speaker C: Well, his immediate reaction was pure shock. As you'd expect, he literally stood there Watching workers build a luxury home on land he'd owned since childhood.
His first call was actually to the police, Thinking this was a simple trespassing issue.
[00:52:26] Speaker B: And I'm guessing they quickly realized it wasn't that simple.
[00:52:30] Speaker C: Exactly. The police checked the property records and found that on paper, at least, Daniel wasn't the owner anymore. The developer had completely legitimate looking documentation Showing they had purchased the property from. Get this.
Someone claiming to be Daniel.
[00:52:48] Speaker B: Oh, wow. So the police basically told him it was a civil matter, not criminal.
[00:52:53] Speaker C: That's right. And that's when the real nightmare began.
Daniel had to hire a real estate attorney Specializing in fraud cases, which, as you can imagine, wasn't inexpensive.
His attorney immediately filed what's called a quiet title lawsuit to establish Daniel as the rightful owner.
[00:53:14] Speaker B: For our listeners who might not be familiar, A quiet title action is a legal proceeding to establish ownership of real property. When there are competing claims, it essentially quiets any disputes about who owns the land.
[00:53:30] Speaker C: Thank you for that explanation. And in Daniel's case, the quiet title action was just the beginning.
His attorney also filed for an emergency injunction to stop construction immediately.
[00:53:42] Speaker B: Did they get it?
[00:53:43] Speaker C: They did, but not without resistance. The developer argued they were a bona fide purchaser who bought the property in good faith, not knowing about any fraud. They had already invested nearly 400,000 in construction costs.
[00:54:01] Speaker B: That creates such a complex situation. Legally, you have two innocent parties. Daniel, the legitimate owner who was defrauded, and the developer who unknowingly purchased stolen property.
[00:54:14] Speaker C: Exactly. And unfortunately for Daniel, the burden of proof was largely on him. He had to prove he never sold the property, which meant proving a negative. His attorney had to gather evidence showing Daniel was living in Arizona at the time of the supposed sale and couldn't have been in Connecticut to sign the documents.
[00:54:35] Speaker B: What about the supposed sale itself? Were there red flags that should have been caught?
[00:54:40] Speaker C: Absolutely. The property sold for about 40% below market value, which should have raised eyebrows. And the fraudster used a notary who later couldn't produce the proper logbook entries or identification records for the transaction.
[00:54:56] Speaker B: With your 25 years investigating financial crimes, I bet you've seen cases where those details were the key to unraveling the whole scheme.
[00:55:06] Speaker C: You know it.
And in Daniel's case, the smoking gun came six months into the legal battle when his attorney subpoenaed security camera footage from the town clerk's office.
The footage showed someone, clearly not Daniel, submitting the fraudulent deed transfer.
[00:55:25] Speaker B: That must have been a breakthrough moment.
[00:55:27] Speaker C: It was critical evidence. But even with that, the case dragged on for almost two years.
During that time, the construction remained halted. With a half built luxury home sitting there deteriorating.
[00:55:39] Speaker B: What a mess for everyone involved. How was Daniel holding up through all of this?
[00:55:43] Speaker C: It took a serious toll on him. The legal fees alone were approaching 100,000. He had to make monthly trips from Arizona to Connecticut for court appearances.
[00:55:53] Speaker B: Then there is the constant stress of potentially losing property. The that had been in his family for generations.
[00:56:00] Speaker C: Not to mention, the developer was probably facing financial ruin as well.
[00:56:04] Speaker B: Absolutely. They filed a separate lawsuit against their title insurance company, claiming they should have caught the fraudulent deed. That case is still ongoing.
[00:56:14] Speaker C: So where does the case stand now? Has it been resolved?
[00:56:17] Speaker B: After two years of litigation, the court finally ruled in Daniel's favorite restoring his ownership of the property. The criminal who perpetrated the fraud was eventually identified and prosecuted for forgery and identity theft, among other charges.
[00:56:36] Speaker C: That's good news at least. Did they catch the entire group involved?
[00:56:40] Speaker B: Unfortunately, no. They caught the person who impersonated Daniel at the closing, but they believe he was just one part of a larger organized crime ring specializing in property fraud. The investigation into the broader network is ongoing.
[00:56:57] Speaker C: And what about the half built house? What happens to that?
[00:56:59] Speaker B: That's where things get even more complicated. Daniel technically owns the improvements to his land now, but he doesn't want or need a luxury home. The developers insurance is covering some of their losses, but they're still fighting over whose response. Responsible for either completing or demolishing the structure.
[00:57:20] Speaker C: What a cautionary tale. Two years of legal battles, hundreds of thousands in costs, and still unresolved issues.
All because one piece of property wasn't properly monitored.
[00:57:32] Speaker B: And that's really the takeaway here. Daniel's case is extreme, but not unique. The FBI estimates that property and deed fraud is one of the first, fastest growing white collar crimes in America, targeting more than 13,000 people annually.
[00:57:49] Speaker C: It's particularly cruel because it's not just a financial crime. It's taking something deeply personal from victims. Land represents security, heritage, and in Daniel's case, childhood memories.
[00:58:03] Speaker B: That's so true. And unfortunately, in Most cases, the victims don't have Daniel's resources to fight back.
Many end up settling for partial compensation or losing their property entirely.
[00:58:16] Speaker C: You know, sue, we've been discussing the mechanics of property fraud and Daniel's legal battle, but I think we need to talk about something equally important.
The psychological impact on victims like Daniel.
[00:58:29] Speaker B: That's a great point, Nick. This isn't just about paperwork and court dates. Having your property stolen out from under you can be absolutely devastating emotionally.
[00:58:39] Speaker C: Exactly. The financial and emotional toll this type of fraud can inflict is immense, Nick.
[00:58:44] Speaker B: There's just something uniquely invasive about property theft that goes beyond the financial loss.
[00:58:50] Speaker C: I think it's because land ownership is so fundamental to our sense of security.
When Daniel saw that half built luxury home on his childhood property, he described feeling physically ill. Like the ground was literally being pulled out from under him.
[00:59:05] Speaker B: That's such an apt description. You know, psychologists have studied this. There's actually a term for it called territorial violation.
It triggers the same fight or flight response as physical threats.
[00:59:20] Speaker C: That makes complete sense. Daniel said that he had nightmares for months after discovering the fraud. He said that he had a dream about coming home to find strange strangers living in his house, and he couldn't convince anyone they didn't belong there.
[00:59:35] Speaker B: Wow. That's intense. And I imagine the prolonged legal battle only compounds that trauma.
[00:59:40] Speaker C: Absolutely.
Daniel described it as two years of living in limbo. He couldn't move forward because this massive unresolved issue was hanging over him. He started experiencing anxiety, insomnia, even symptoms of depression.
[00:59:57] Speaker B: I've seen that with fraud victims before.
There's this concept called secondary victimization, where the process of seeking justice becomes almost as traumatic as the original crime.
[01:00:10] Speaker C: Yes, Daniel mentioned that exact feeling. He said at times he felt like he was the one on trial, having to prove he didn't sell his own property. The burden of proof being on him added this layer of almost indignity to the whole experience.
[01:00:28] Speaker B: And I bet there was a financial strain too, right? Legal fees, travel costs, maybe even therapy expenses.
[01:00:34] Speaker C: Oh, absolutely. Daniel estimated he spent over 100,000 just fighting to reclaim what was already his. He had to dip into retirement savings. And the stress affected his work performance too. He said he lost out on a promotion because he was so distracted by the case.
[01:00:52] Speaker B: That's the insidious thing about these crimes. The visible damage is just the tip of the iceberg.
[01:00:58] Speaker C: Exactly. And there's the social impact, too.
Daniel said he became almost obsessed with the case, talking about it constantly. It strained relationships with friends who eventually got tired of Hearing about legal details.
[01:01:13] Speaker B: They didn't understand that isolation can be devastating. Did he find any support system systems?
[01:01:19] Speaker C: Eventually, yes. He connected with other property fraud victims online and said that was incredibly validating. Just knowing he wasn't alone or crazy for feeling the way he did helped tremendously.
[01:01:31] Speaker B: That's often the case with fraud victims. Finding community can be healing. Did any of the victims speak out about how they move forward psychologically?
[01:01:40] Speaker C: They did, and that was actually inspiring.
Many described a turning point where they shifted from feeling like victims to becoming advocates.
Daniel now volunteers with a property rights organization that helps educate homeowners about fraud prevention.
[01:01:58] Speaker B: That kind of reclaiming of personal power can be so therapeutic.
[01:02:02] Speaker C: Definitely. Though Daniel was very honest about the fact that he'll never feel quite the same about property ownership. He's hyper vigilant now, checks his property records monthly, has alerts, set up, the whole nine yards.
[01:02:16] Speaker B: That lingering distrust is common with fraud victims. The sense of security that most of us take for granted has been fundamentally shaken.
[01:02:25] Speaker C: Exactly. And that's what makes these crimes particularly cruel. The scammers aren't just stealing property or money. They're stealing peace of mind, security, and in some cases, cherished memories attached to that land.
[01:02:39] Speaker B: It's a form of emotional violence in many ways. And unfortunately, our legal system isn't always equipped to address that psychological damage.
[01:02:50] Speaker C: That's right.
While Daniel eventually got his property back, there's no real compensation for two years of anxiety, sleepless nights, and the knowledge that a place that held cherished childhood memories was violated.
[01:03:05] Speaker B: And that's something all of us should remember when we think about fraud prevention. We're not just protecting our assets. We're protecting our sense of security and psychological well being.
[01:03:18] Speaker C: Absolutely. And that's why we're so passionate about educating our listeners. These aren't just abstract financial crimes. They're deeply personal violations that can have lasting psychological impacts.
[01:03:31] Speaker B: As we reach the end of today's episode, I think it's important we summarize what we've learned about this shocking form of real estate fraud.
Nick, this story about Daniel really highlights how vulnerable even unoccupied land can be, doesn't it?
[01:03:48] Speaker C: It absolutely does, Sue.
I think what's most alarming about this case is that Daniel had no idea his property was being stolen until he physically saw construction happening on it. Most people would never even think to regularly check on vacant land they own.
[01:04:05] Speaker B: That's the scary part. You could own property for years, dutifully paying taxes, and have no idea someone has fraudulently sold it right out from under you.
[01:04:16] Speaker C: Exactly. And as we discussed, these scammers are sophisticated. They're forging documents, stealing identities, and exploiting gaps in our verification systems that most people don't even know exist.
[01:04:30] Speaker B: So let's give our listeners a clear list of protective steps they can take right now. What's number one on your list, Nick?
[01:04:36] Speaker C: First and foremost, sign up for property fraud alerts with your county recorder's office.
Many counties now offer free notification services that will alert you anytime a document is filed against your property.
[01:04:48] Speaker B: That's so important. And it's free in most places, right?
[01:04:51] Speaker C: Yes, completely free in most counties. It's probably the single most important step property owners can take.
[01:04:58] Speaker B: What about for people who own property in multiple counties or states?
[01:05:02] Speaker C: Great question. You'll need to register separately with each county where you own property. There's unfortunately no national system yet, though I know there's movement in that direction.
[01:05:13] Speaker B: Second tip. What else should people be doing?
[01:05:16] Speaker C: Regularly check your property records online.
Most county recorder offices have searchable databases where you can look up your property. I'd recommend checking quarterly, especially for vacant land.
[01:05:29] Speaker B: And if something looks off or unfamiliar.
[01:05:31] Speaker C: Shows up, contact the recorder's office immediately. And consider reaching out to a real estate attorney.
Speed is crucial if you discover potential fraud.
[01:05:42] Speaker B: What about title insurance? We mentioned that earlier.
[01:05:45] Speaker C: Absolutely. When purchasing property, always get owner's title insurance, not just lender's title insurance. Many people don't realize these are different. The owner's policy protects your interest in the property and can cover legal fees if you need to defend your ownership.
[01:06:04] Speaker B: And for property you already own, consider.
[01:06:06] Speaker C: Getting a title checkup every few years. Some title companies offer monitoring services that will alert you to potential issues with your title.
[01:06:17] Speaker B: Let's talk about identity protection, too, since that's often how these scammers operate.
[01:06:22] Speaker C: Right?
Standard identity protection measures apply here.
Monitor your credit reports, be careful with personal information, and consider placing a security freeze on your credit if you're not actively seeking loans.
[01:06:38] Speaker B: What about when you're traveling or away from home for extended periods?
[01:06:42] Speaker C: Great point. If you're going to be away for an extended period, have someone regularly check your mail. These scammers often look for properties where mail is piling up. It's a sign the owner isn't around.
[01:06:55] Speaker B: And if you own vacant land like.
[01:06:56] Speaker C: Daniel, visit it periodically if possible, or have someone check on it for you. Also consider posting no trespassing signs with your contact information.
This makes it harder for someone to claim they didn't know who the owner was.
[01:07:13] Speaker B: What about elderly parents or relatives who might be more vulnerable to these scams?
[01:07:18] Speaker C: That's a critical concern.
Offer to help older family members monitor their property records and consider setting up a property trust or family LLC that requires multiple signatures for any property transfer.
This adds an extra layer of protection.
[01:07:35] Speaker B: These are all excellent tips, Nick. Is there anything else our listeners should know?
[01:07:39] Speaker C: Just remember that an ounce of prevention is worth a pound of cure here. As we saw with Daniel's case, fighting these frauds after they happen can be incredibly costly, time consuming, and emotionally draining.
[01:07:54] Speaker B: And not everyone is fortunate enough to eventually regain their property like Daniel was.
[01:07:58] Speaker C: Exactly. The legal battles can drag on for years, sometimes with heartbreaking results. That's why we're so passionate about helping people protect themselves proactively.
[01:08:08] Speaker B: I think that's what makes this podcast so important. We're not just telling scary stories, we're empowering our listeners with with concrete steps they can take to protect themselves.
[01:08:20] Speaker C: This was quite a story, sue, but that's all for today's episode of behind the Scams. Thanks for listening, and remember, stay safe.
[01:08:28] Speaker B: Stay informed, stay alert, and we'll catch you next time. Bye for now.
[01:08:32] Speaker C: Miles, please close out this episode for us.
[01:08:34] Speaker A: What a wild ride this is. Miles again wrapping up this episode of behind the Scams with a few few critical takeaways.
Daniel's story wasn't just a fluke. It's a textbook case of the growing crime of property deed theft.
Scammers are forging documents, impersonating property owners, and slipping through the cracks of our outdated county recording systems to steal land, often from people who live out of state or own vacant lots of.
Here's what you need to watch Unexpected activity on your property, like construction or notices about sales you never initiated, missing property tax bills or other important documents that suddenly stop arriving and unsolicited offers to buy your land, especially if they come with high pressure and little verification.
Don't forget identity theft is often the key to the entire scam.
If a criminal can impersonate you on paper, they can sell your land, access your financial records, and disappear long before you even know what's happened. The best defense is staying proactive.
Regularly check your property records with your local recorder's office, sign up for any fraud alert systems your county might offer, and take steps to safeguard your personal information.
It's a lot easier to prevent this kind of fraud than it is to unwind it once the damage is done.
Thanks for listening.
And remember, the only thing worse than getting scammed is not seeing it coming.
Stay sharp, stay skeptical, and we'll catch you next time.
This is Miles signing off.
