Hundreds of homeowners in New Hampshire have had their property sold out from under them by scammers since 2019. Here’s how to protect yourself from quit claim fraud

How the quit claim deed scam works

The FBI reports that scams of this type tend to target vacant lands or homes, properties with liens, or vacation homes and properties owned by people living out of state.

Here’s how it works: Scammers called ‘title pirates’ forge documents for the quit claim deed transfer without your knowledge. They then attempt to have the forged documents recorded with the county’s register of deeds. They also forge identification to take advantage of remote closings, so they never have to present themselves in person.

The scammers look for properties using public records, searching for vacant parcels of land, or properties that don’t have a mortgage. They can impersonate the owner and contact an unsuspecting real estate agent to list the property. Many homeowners whose properties have been listed for sale don’t find out until after the sale has gone through.

The FBI found that some victims are even elderly family members of the fraudster. These relatives are convinced to transfer the property into the name of the scammer without a clear understanding of their rights.

While unoccupied properties are the most common targets, it’s possible for fraudsters to target your family home. If you are the victim of this type of scam, also known as home title theft, you may find yourself heading to court to prove that you’re the legitimate owner of the property.

“Folks across the region are having their roots literally pulled out from under them and are being left with no place to call home. They’re suffering deeply personal losses that have inflicted a significant financial and emotional toll, including shock, anger and even embarrassment,” said Jodi Cohen, special agent in charge of the FBI Boston Division. “We are urging the public to heed this warning and to take proactive steps to avoid losing your property. Anyone who is a victim of this type of fraud should report it to us.”

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How to avoid becoming a victim of title theft

According to the FBI report, many victims of this kind of scam don’t know where to report it, or are too embarrassed to come forward. Some may not even realize they've been scammed.

Nationwide, 58,141 victims reported $1.3 billion in losses relating to real estate fraud between 2019 and 2023. Massachusetts is a hotbed of real estate crime, with 1,576 victims losing $46,269,818 in that time period.

One of the best ways to protect yourself is to ensure you have a Homeowner's Policy of Title Insurance. Realtor.com reports that while traditional title insurance policies protect against fraud before a purchase happens, this newer protection covers theft after you own the property.

They note that while insurance can't prevent scammers from forging a deed in the first place, a comprehensive policy puts the onus on the insurance company to resolve the fake title claim in court.

You can also pay for a service to monitor your title, or register with your county to be alerted if any documents are filed in your name. A growing number of counties are offering this service for free in response to the rising rate of fraud.

Finally, the Attorney General's Office also recommends that homeowners regularly visit their properties and ask neighbours to check in periodically on any vacant homes. You can also set up a Google alert for your address to see if it shows up on realtor websites and check social media regularly for the same reason.

If you need to report deed fraud, you can call the Attorney General's Consumer Protection Hotline at 1-888-468-4454.