« Courts - Still more on: Specialty plates questions being heard in 3rd Circuit | Main | Law - "Considering Bankruptcy Law? Proceed With Caution" »
Friday, April 17, 2009
Ind. Law - "State warns of home-theft threat: County recorders want law tightened on deed filing"
Dan Stockman reports today in the Fort Wayne Journal Gazette:
The Indiana attorney general cautioned homeowners Thursday against a new mortgage fraud that lets thieves steal homes and walk away with thousands of dollars in fraudulent loans.A side-bar states: "The Allen County Recorder’s Office offers Property Fraud Alert, a free service that notifies you by phone or e-mail if documents are recorded with your name on them." Access it here.Attorney General Greg Zoeller joined the Indiana Recorders Association and the Association of Indiana Counties in Indianapolis to publicize the scheme.
The Journal Gazette exposed the practice in an April 5 story by “stealing” the Lincoln Tower in downtown Fort Wayne in less than an hour, identifying the new property owner as Johnny Appleseed.
The newspaper prepared a fake deed transferring ownership in the iconic building, which Allen County Recorder John McGauley said his office would have no choice but to accept.
The newspaper did not record the document and left off key pieces to ensure it could not be recorded, so the 300-foot-tall tower’s ownership was never in jeopardy. But the example showed how easily the crime can be carried out.
“County recorders’ offices have always operated with a high degree of customer convenience in recording deeds and other notarized documents, and, indeed, state law does not allow them to demand proof of identification from customers,” Zoeller said during Thursday’s announcement. “Criminals are exploiting a loophole to fraudulently transfer ownership of properties in an effort to steal money from lenders.”
Thieves are not interested in the property they steal – they’re interested in showing ownership so they can obtain a fraudulent loan and disappear with the money. That can leave the true property owner holding the bag.
“The actual homeowners, through no fault of their own, are at risk of losing their home to foreclosure,” Zoeller said. “Correcting the problem and clearing the cloud off the title could cost the homeowners thousands of dollars.”
McGauley said the state’s recorders are looking at legislation similar to a law in California that would require a thumbprint along with a notarized signature. A similar requirement takes effect in Illinois this summer.
Here is Attorney General Greg Zoeller's press release, issued April 16th.
Posted by Marcia Oddi on April 17, 2009 09:29 AM
Posted to Indiana Law