Wayne County Prosecutor Deed Fraud Unit
Wayne County Prosecutor
Deed Fraud Unit
Prosecutor Kym Worthy, Sheriff Warren Evans, and Register of Deeds Bernard Youngblood have worked tirelessly to come up with a solution to solve the problem of deed fraud. As a result, in 2005 the Deed Fraud Unit was created.
Housed in the Register's offices at 400 Monroe, the unit intakes citizen complaints called in to the Register of Deeds deed fraud hotline (313-224-5869). The unit moved into its new headquarters in January of 2006.
In recent years, criminals have discovered that they can prepare and record legitimate looking documents, and forge the rightful owners signatures, transferring title to themselves. They then work with an unsuspecting or cooperative mortgage lender, and borrow against the property, all without the knowledge of the rightful owner. This often happens when the rightful owner has recently died, or been placed in a nursing home.
All the equity is pulled from the property at the closing, no payments are made on the mortgage, and the property goes into what is known in the industry as a "first payment default". This will usually trigger a fraud investigation by the parent company of the mortgage lender.
The rightful owner, or their heirs or family members, only learn of what has taken place when they find foreclosure papers taped to the front door. Filing a civil lawsuit to stop the foreclosure and set aside the forged transfer is expensive; time consuming, and often only marginally cost effective.
When the Register of Deeds receives a suspicious document, it is now immediately flagged and there is an investigation to determine the legitimacy of the document. As of February 2006, the unit has 66 active matters. Each file is typically factually intensive, and requires a great deal more investigative and prosecutorial time than an ordinary stolen car, or home invasion, or simple larceny case. Though the unit only began at the end of last year, it enjoyed a 100% conviction rate for its 2005 cases
Contact Information
You can contact the Register of Deeds' Deed Fraud Hotline: (313) 224-5869
Frequently Asked Questions
Q. How could a piece of real estate possibly be stolen?
A. The "title" to a parcel of real estate is not at all similar to a vehicle title document, as one does not need the actual "title" to record a transfer of ownership, or discharge of a bank loan, as is required at a Secretary of State office for a motor vehicle. Proof of ownership, documentation of mortgages, and other records showing who has an interest in a parcel of real estate, and how and when they acquired it, are recorded with the county Register of Deeds office. Attorneys, title companies, or real estate professionals, using readily available forms, typically prepare real estate title transfer documents.
Pursuant to statute, the Register of Deeds office has an obligation to accept a document affecting title to real estate for recording if it meets certain minimal requirements, such as the type size, the margin requirements, notarization, a witness, and the marital status of the grantor. The Register of Deeds is obligated to accept a document if it meets the requirements, and cannot reject it if it, even if it appears suspicious.
Q. How do I know if I have been a victim of deed fraud?
A. There will often be a stranger claiming to be the rightful owner of your property. Sometimes, there will be a foreclosure notice posted to your door, involving a mortgage you never heard of. Or, you no longer receive the tax bills, and you learn that somebody else is paying the taxes.
Q. What should I do if I see symptoms of deed fraud?
A. Bring your proper identification, and go to the Register of Deeds at 400 Monroe, Detroit. The people at the counter are very friendly and concerned, and will be glad to help you search the title records to see if anybody has filed any false papers concerning your property. The Deed Fraud Hotline is (313) 224-5869.
Q. Can the Deed Fraud Unit stop foreclosure of my property?
A. No, that would need to be done by a Circuit Judge.
Q. Can the Deed Fraud Unit get my house back in my name?
A. Possibly. If the Defendant can be located, charged, and convicted, you can ask the Judge to order him or her to sign whatever documents are needed to put the house back in your name. Legislation is being drafted to grant the Court additional powers in this area.
Q. What else can I do if I find out that my house has been stolen?
A. You will need to hire a lawyer to complete an Affidavit of Forged Instrument, which you can record with the Register of Deeds, to give notice that the property is rightfully yours, and that a specifically referenced conveyance is a forgery. There is likely to be a legal fee associated with the lawyer's services, and by statute there is a mandatory recording fee associated with the filing of such an instrument. Currently the Prosecutors Office is unable to provide these documents, but we are working on adding this to the program