Written by: TFVstaff • December 4, 2019• Home Safety

Home Protection Against Fraud

For most people the stress of home buying ends with the closing. Keys are exchanged, movers are called and planning begins for the next phase of real estate life. But thanks to new rules and regulations, and the introduction of technology into the filing process, homeowners aren’t actually as free and clear as they might think.

The FBI has recently warned of a significant increase in deed frauds, leading to equity being stolen from homeowners. The ease of online recording has led to unscrupulous individuals borrowing money against the fraudulent title, and running off with your equity. “In recent years most of the counties in Florida have moved from requiring original documents to allowing deed transfers to be done electronically,” says Bryan Levy, the founder of Deed Shield. “Traditionally, you needed an original transfer document, with an original notary seal, to be verified by the clerk in person. Now, it can be done electronically. Anyone with a malicious and criminal intent, could easily cut and paste relevant parts and refile.”

“My mom was taken advantage of, and 3 years later is still dealing with a fraud of over 200k against her home. I wish this service existed back then.”
Gladys from Coral Gables, FL

Levy himself has seen firsthand how the process can wreak havoc on a homeowner’s life–both financially and emotionally. As a real estate attorney for more than two decades, it was an increase in the frequency of this type of fraud that spurred him to create Deed Shield, which launched late last month. The Miami-based company serves as a constant watchdog over all transactions concerning the clients’ homes, alerting the homeowner whenever there is unauthorized activity concerning their deed or equity.

Clients pay a month fee of $9.99 (about $0.33 per day) for the constant monitoring PLUS a credit of up to $25,000.00 to fight any fraud that may occur against the property during their Deed Shield membership.

“After you close on your property, and the title is recorded, the common misconception is that nothing will happen to the property and title until you decide to get a new mortgage, transfer or sell the property,” Levy says. “Most people don’t think they have the need to regularly check on the status of their title, like checking on the status of your credit to make sure all information is accurate.” All public information should be regularly monitored to ensure accuracy, and to avoid fraud against one’s home, according to Levy. Months or years can pass where the homeowner may not even know what’s going on with their title, during which time someone can prepare fraudulent documents and steal their equity. Levy suggests all homeowners should be proactive by regularly monitoring all of their public information, especially when concerning their biggest investment: their home.

In fact, Miami has more reason than ever to keep a close watch. The Federal Trade Commission Consumer Information reported in 2018 that the top fraud was imposter scams, costing losses of $328 Million to those affected. FTC describes Florida as one of the top states with respect to fraud claims in the country. Levy also cites an especially high frequency of this type of fraud against elderly homeowners, property investors, and other owners that have had their home for years with significant equity. In one scenario, outsiders engineered a reverse mortgage on a property, of which the elderly homeowner had no idea. By the time the fraud was discovered, the heirs of the property owner got involved and were forced to spend three plus years and tens of thousands of dollars in legal fees, not to mention cooperation with local and federal authorities, to clear up the fraud. In the meantime, they were unable to sell the home for years, compromising the property’s value and equity.

Levy says Deed Shield wants to save all homeowners from the risk of losing thier equity, not to mention the time and money lost in dealing with this type of fraud. By providing a simple monitoring service for all homeowners, Deed Shield is able to maintain the accuracy of home title while virtually eliminating the threat of any fraud against homeowners and their hard-earned equity.

For more information, please visit deedshield.com

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