How Theives Steal Your Home
A Combination of ID Theft and Mortgage Fraud
House stealing is both a form of identity theft and mortgage fraud. In its most basic form, a fraudulent seller, who assumes the identity of the homeowner, sells the home either to a legitimate buyer or to fake buyer who is actually scamming a mortgage company or bank. Also known at "title theft," house stealing can cause nightmares for the actual homeowners, who may find themselves the victims of foreclosure actions on houses that were bought and paid for. In some cases, identity theives refinance or take out equity loans on the home, and the owner is left to prove that the action was not taken on his or her behalf. According to the FBI, scammers may also use fake documents to transfer the titles on vacant homes (or ones that people still live in) and then sell the homes to buyers who are completely unaware of the bogus transaction.
Another form of House Stealing involves con artists who promise to help people refince homes or modify mortgages. Essentially, they get people to sign away the titles on their homes, and they promise to make the mortgage payments. Often they say that they will sell the house back to the homeowner, and they usually take a fee for their services. In actuality, no payments get made, and the house is foreclosed on. An even more complicated part of house stealing involves getting "straw buyers" to get loans from the bank for these deals, and pocket the money instead of paying the scam victims who signed over their homes. In cases like these, the bank is out of its money and the owners are out of their homes, which may have held a certain amount of equity.
Signs that your house has been stolen include receiving a mortgage payment book from a company you aren't familiar with, or getting notice of liens against your house. You may also want to check with your county's deed office to make sure that no unfamiliar paperwork has been associated with your home's records.
Notes and Special Information
Special note: There are multiple fraud schemes designed to trick people out of their houses, so it is best to be on the alert.