Who is typically at risk for title fraud?

Legitimate homeowners face significant risk for title fraud primarily because they may be unaware that their property title has been compromised. Title fraud occurs when someone illegally transfers the title of a property without the owner's consent, often by forging documents. Homeowners, who may not closely monitor their property records or who may be uninformed about the status of their title, can be particularly vulnerable.

Fraudsters are attracted to legitimate homeowners since these individuals typically have established equity in their properties. Once the title is fraudulently transferred, they could potentially take out loans against the property or sell it outright, leading to significant financial and legal complications for the real homeowners.

In contrast, new investors may conduct thorough checks and due diligence that could help them avoid situations of title fraud. Real estate appraisers and local government agencies generally do not hold titles and are thus not typically at direct risk for this type of fraud.