Pet Friendly Homes in Boca Raton: FRAUD ALERT - PROPERTY AND STOLEN IDENTITY - RENTER FORGES DEED

FRAUD ALERT - PROPERTY AND STOLEN IDENTITY - RENTER FORGES DEED

This is something we all need to be aware of.  

Fraud - Losing your home - Identity Theft - these are all scary words and for good reason.

It has been 12 years since I wrote my first blog on fraudulent deeds and what I wrote then still is true today.  It was my most read article over the past 12 years.  Today, technology and services offered by the various public recording offices can be used to "push" notices to you if your name has appeared in any new filing in the Public Records of a county in which you own property.  I urge everyone to sign up for this service.  It can save you a ton of aggrevation and money and alert you to theft of your identity and your real estate!  Typically the service is called "property fraud alert" and you can sign up at your county clerk's website.  For example, here in Palm Beach County you can sign up HERE. Sign up NOW!

Now back to the story - a story in various forms that we have seen year after year:.......

It is a day past Halloween, but here is a scary TRUE story:

My office is presently working on a case that is so prevalent that I thought posting it on my blog would be helpful.  The matter involves a single person who bought a home 5 years ago. 

It is a nice house, in a great community.  He bought is for investment, paying about $400,000 and getting an 80% mortgage.  It is his second home in South Florida, and his other home is about 5 miles away, but that is seldom used as he works in another state.

He put a renter into the house, using an established Realtor for find her.  The renter paid her rent regularly without any problem every month.  About one year into the lease, the homeowner paid off the mortgage with extra cash he earned.  He also extended the lease for the renter, using the Realtor for the paperwork.

The renter apparently had a friend with whom (we would later learn) lived in a previous house with her.  Shortly after the extension to the lease was executed, the renter created a quit claim deed from the owner to herself, and recorded it for nominal consideration.  About 3 months later she sold the house to her friend for $500,000.  Her friend took out a conventional mortgage for 80% and the renter took back a purchase money mortgage in 2nd position, which covered most of the remaining cash to close.

The owner was alerted to the deeds when his Realtor called him because she was just updating her files and checked online for his real estate taxes - seeing the tax collector was showing the wrong owner for the property.  She went to the property and it was vacant. 

No mortgage payments were ever made on the home by the "new" purchaser.

After more than two years of litigation, the Quiet Title case is going to court.  The real owner has not had title to the home and missed the ability to sell it in the right market.  Plus he has the legal expenses associated with the recovery of title of the house. Fortunately the title underwriter paid off the fraudulently acquired mortgage, so we only have to get rid of the 2nd mortgage and the fraudulent deed and the deed subsequent to it.

The perpetrators are no where to be found.

Of course a glaring question is the notary on the Quit Claim Deed - we are gathering evidence that should put that person out of business - or at least authenticate the claim on the insurance bond (which is limited to a nominal amount).  This is a primary example for notary publics to keep a log of what they notarize along with copies of identification of the signing parties for every transaction.  It is a HUGE pain, but is there a better way?

I don't know the moral of this story.  I guess it is .... IT CAN HAPPEN TO YOU (or your clients)!

If anyone has a similar story to relate - please share it!

Copyright 2007 / 2019 Richard P. Zaretsky, Esq.

 Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., ZARETSKY LAW GROUP. ATTORNEYS AT LAW, 1615 FORUM PLACE, SUITE 3A, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ@ZARETSKYLAW.COM  - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website www.Florida-Counsel.com

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Elyse BermanFor information about pet-friendly housing in Boca Raton, Delray Beach, Highland Beach, Boynton Beach or Boca Raton real estate market, please contact me. I am a Boca Raton Real Estate Agent.

Contact Elyse:
By Email: Elyse@ElyseBerman.com
By Text - 561-716-7824
Cell - 561-716-7824

Elyse Berman, PA, CRS, ABR, GRI, e-PRO of Best Connections Realty, Inc. serving Boca Raton FL and the surrounding cities of Highland Beach, Delray Beach, Boynton Beach, Lake Worth, Wellington, Deerfield Beach, Hillsboro Beach, Lighthouse Point, Fort Lauderdale, Hollywood Beach and Hallandale Beach.

 

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Disclaimer:  The information contained in this blog should not be solely relied upon and should be independently verified by professional sources.  The opinions expressed herein are solely mine. 

All information is deemed accurate but not guaranteed. All statistical information was obtained from BMLS.   Many articles may be time and date sensitive.  Please be sure to look at the date it was posted. 

No reproduction is permitted without the author's express permission.

Comment balloon 3 commentsElyse Berman, PA • March 01 2019 01:05AM

Comments

Elyse and excellent reblog and this is such a valuable post everyone should read it. On a side note do not forget the email we talked about the other day, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 7 months ago

Endre, Thanks.  Definitely worth reblogging.  I haven't forgotten.  It's just been non-stop.  I am hoping to get it done this week.

Posted by Elyse Berman, PA, Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR (Best Connections Realty, Inc.) 7 months ago

Elyse, it is sad to me when I read about those who are willing to steal instead of working hard to make their dreams a reality. Anything is possible in this country if you work for it.

Posted by Jeffrey DiMuria 321.223.6253 Waves Realty, Florida Space Coast Homes (Waves Realty) 7 months ago

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