Home Title Theft: Real Threat or Hyped-Up Hooey?

When you think of theft, you might imagine stolen wallets, broken car windows, or shoplifted items. But in today’s digital age, thieves have found a new way to target homeowners: home title theft. This type of crime can be devastating, but is it something you should worry about? We’ll break it down in simple terms.

What Is Home Title Theft?

Home title theft is a type of fraud in which criminals attempt to change the ownership of a property without the rightful owner’s consent. This usually involves identity theft—scammers forge documents to transfer the property title into their name and then use it to take out loans or even sell the property. The homeowner may remain unaware of the fraud until they receive foreclosure notices, collection calls, or other legal notices regarding debts tied to their property.

How Common is Home Title Theft?

Home title theft is often portrayed as a major risk. Alarming ads from companies selling “Title Lock Insurance” loudly warn, “The FBI says you may not own your own home!” and “Property thieves and cybercriminals have figured out how to transfer your home into their name without you noticing!” However, while property fraud does exist, the idea that thieves can simply transfer your home’s ownership and leave you homeless is largely exaggerated.

In reality, the legal and financial systems around homeownership have safeguards that make such scams difficult to execute. County recording offices require proper documentation and verification before making changes to a title, and most lenders conduct due diligence before approving large loans. While cases of forged documents do occur, they are rare, and homeowners are not automatically liable for fraudulent transactions.

Should I Get Home Title Lock Insurance?

First and foremost, title lock insurance is not the same as title insurance. Title insurance (which you may or may not have purchased when you bought your home) is an actual insurance policy that protects against unknown title defects on a property, like liens or conflicting wills. Despite its name, title lock insurance is not actually insurance, but rather a monitoring service that alerts you if someone attempts to fraudulently transfer your property title—after the attempted transfer has happened. Most experts agree it’s not worth the added cost. You with your state’s land records office, and some areas even have a free notification program that allows you to sign up for alerts about any legal changes, like ownership of a property.

In Oregon, property title records are maintained at the county level, and most counties offer online databases where you can search for and view property records free of charge. Access to these records varies by county. In Marion and Polk counties, Oregon, property records are accessible through the respective county offices:

Additionally, Oregon law requires cities and counties to notify affected property owners when zoning laws change that could impact their permissible uses. This ensures that property owners are informed about legal changes affecting their property.

How to Protect Yourself

While home title theft is serious, it’s not as common as other types of identity theft, like credit card fraud. So, instead of paying for expensive monitoring services, take some practical steps to protect yourself. The risk of losing your home due to title theft is much lower than some advertisements suggest, but vigilance is still important. Here are some steps you can take to protect yourself against title theft and reduce the risk of legal hassles.

• Monitor Your Property Records: Check your local county recorder’s office or website regularly to ensure no unauthorized changes have been made to your property title.
• Sign Up for Title Alerts: Some companies and local governments offer services that notify you of any changes to your property records.
• Secure Your Personal Information: Shred sensitive documents, use strong passwords, and be cautious about sharing personal information online.
• Freeze Your Credit: A credit freeze can prevent thieves from opening new accounts or taking out loans in your name.
• Stay Alert: If you receive unexpected mail about your property or notice anything suspicious, investigate immediately.

Home title theft fraud is a real thing, but it’s not something you need to lose sleep over—as long as you take precautions. If you stay informed and proactive, you can significantly reduce your risk. And if you’re ever unsure about the status of your home title, don’t hesitate to reach out to us, a real estate attorney, or your local government office for help. Your home is likely your most valuable asset, so it’s worth taking the time to protect it.