{"id":187724,"date":"2026-04-29T10:11:36","date_gmt":"2026-04-29T16:11:36","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=187724"},"modified":"2026-04-29T10:11:39","modified_gmt":"2026-04-29T16:11:39","slug":"deed-theft-and-fraudulent-tax-lien-sales-are-spreading","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/deed-theft-and-fraudulent-tax-lien-sales-are-spreading","title":{"rendered":"Deed Theft and Fraudulent Tax Lien Sales Are Spreading\u2014Here\u2019s How to Make Sure You Don\u2019t Fall Victim"},"content":{"rendered":"

Because of the large sums of money involved, real estate is a fertile hunting ground for scammers, and one of the most profitable scams is spreading outwards from New York: deed theft. Landlords with free-and-clear properties are particularly vulnerable.<\/span><\/p>\n

New York\u2019s Wake-Up Call on Deed Theft and Tax Liens<\/span><\/h2>\n

New York has become a national case study for how <\/span>deed theft can be perpetrated<\/span>. The tax lien arena is where scammers ply their trade, stripping owners of their equity before they realize what\u2019s happened. With deed theft stats tripling in New York in two years, Mayor Zohran Mamdani announced in April that he was forming the city\u2019s first Office of Deed Theft Prevention and beginning a six-month pause on tax lien sales.\u00a0\u00a0<\/span><\/p>\n

Mayor Mamdani said in a<\/span> statement<\/span><\/a>:<\/span><\/p>\n

\u201cThe theft of a home is the theft of a family\u2019s future. Deed theft preys on the New Yorkers who can least afford it. Today, we are bringing the full force of city government to bear to stop it\u2014to protect homeowners, defend generational wealth, and make clear that this city will not tolerate the exploitation of our communities.\u201d<\/span><\/em><\/p>\n

In 2025, New York City recorded<\/span> 517 deed theft complaints<\/span><\/a>, up from 149 in 2023, and as many as 3,500 deed theft complaints between 2013 and 2023, according to New York Attorney General Letitia James.<\/span><\/p>\n

“With the technology advancing and new ways of creating documents like birth certificates, Social Security numbers, any type of ID that you can make on the internet, it’s becoming much more prevalent, and people are hearing that they have a voice about it now,” Queens District Attorney Melinda Katz told<\/span> CBS News<\/span><\/a>.<\/span><\/p>\n

What Is Deed Theft, and How Does It Apply to Investors?<\/span><\/h2>\n

The simple definition of deed theft, as defined in Mamdani\u2019s <\/span>press release<\/span><\/a>, is when \u201cwhite-collar criminals use fraudulent filings to steal homes from longtime residents.\u201d Although deed theft often<\/span> targets homeowners<\/span><\/a> who are struggling with tax bills or mortgage arrears, small landlords need to be aware that criminals often target second homes, rentals, vacation homes, or vacant houses before selling them to themselves or a third party, such as a trust, according to<\/span> Kiplinger<\/span><\/a>.<\/span><\/p>\n

Deed theft can also <\/span>be instigated<\/span> by something as small as a<\/span> late utility bill<\/span><\/a>, which <\/span>can then be sold<\/span> through the city\u2019s tax lien system.\u00a0<\/span><\/p>\n

Landlords who feel comforted by buying title insurance might be in for a rude awakening, according to law firm<\/span> McGarvey PLLC<\/span><\/a>: \u201cTitle insurance is designed to protect lenders and owners from past defects in title but does not extend to fraud occurring post-purchase.\u201d<\/span><\/p>\n

Out-of-state investors with homes tied to outdated mailing addresses or unmonitored LLCs are particularly vulnerable because unpaid bills are liable to get caught up in the tax lien process. Deed theft often starts when a scammer files a fake quitclaim deed with the county recorder\u2019s office, making it appear as if the scammer owns the property. It often involves forging the current homeowner\u2019s signature on the quitclaim deed to pose as the new rightful owner.<\/span><\/p>\n

Once approved, the scammer can take out a mortgage on the home or sell it and abscond with the proceeds. Alternatively, they might use the home as a rental scam, renting it out for profit without the homeowner being aware until it is too late.<\/span><\/p>\n

The Attempted Deed Theft of Graceland<\/span><\/h2>\n

One of the most well-known recent deed theft cases involved the attempted transfer of Elvis Presley\u2019s former home, Graceland. A Missouri woman <\/span>pleaded guilty<\/span><\/a> in September to trying to steal the property from Elvis\u2019 family.<\/span><\/p>\n

Lisa Jeanine Findley used a fake company, forged documents, and bogus court filings to claim that Elvis Presley\u2019s daughter, Lisa Marie, had used Graceland as collateral for a loan she failed to pay before her death. Findley had threatened to foreclose on the property and sell it to the highest bidder unless the family paid or settled her claim against the estate.<\/span><\/p>\n

If attempted deed theft\u2014albeit disproven\u2014can happen so blatantly to such a famous property, it can happen anywhere.<\/span><\/p>\n

The National Picture and Tax Foreclosures<\/span><\/h2>\n

Fintech company EquityProtect recently launched a quarterly \u201cdeed theft and title fraud scorecard” to track legislation and consumer protections in all 50 states, with rankings based on their efforts to combat deed theft, <\/span>HousingWire<\/span><\/a> reports.<\/span><\/p>\n

Running parallel to this is the concept of \u201chome equity theft\u201d and tax foreclosures. According to<\/span> the <\/span>Pacific Legal Foundation<\/span><\/a>, following recent court decisions, a growing number of states, including Colorado, Maine, Minnesota, Ohio, and Arkansas, have enacted reforms that require tax-foreclosed properties to be sold at auction, ensuring that the surplus is returned to the former owner rather than kept entirely by the government.\u00a0\u00a0<\/span><\/p>\n

Signs You Might Be a Victim of Deed Theft<\/span><\/h2>\n

There are a few telltale signs that a deed theft scammer may have targeted you. Most obviously, if you are a landlord, you will stop receiving rental payments. However, before that, you might not receive a water bill or property tax assessment bill. If you own a vacation home that is unoccupied for periods of time, you might notice a sudden rise in utility bills as if people were living there.<\/span><\/p>\n

Additionally, you might receive payment notices with new amounts from lenders you are unfamiliar with or, more commonly, receive default notices or a notice that foreclosure proceedings have commenced against you.<\/span><\/p>\n

Final Thoughts: How to Prevent Deed Theft<\/span><\/h2>\n

There are some simple measures to take to protect yourself from deed theft:<\/span><\/p>\n

    \n
  1. Have a reliable mail-forwarding address <\/span><\/strong>if you plan to be away from your property for a while, or have a reliable manager collect it and check on the rental regularly, especially if it\u2019s vacant.<\/span><\/li>\n
  2. Routinely review property records<\/span><\/strong> for potential issues such as deeds that <\/span>weren\u2019t prepared by you or your attorney<\/span>. Look for liens filed by people you do not know. Set up notifications at the deed registry to receive alerts for any changes.<\/span><\/li>\n
  3. Closely monitor incoming bills<\/span><\/strong>, especially mortgage, tax, and water. Have online access. <\/span>If you cannot access your online account, <\/span>it<\/span> could be a red flag, as could another owner\u2019s address <\/span>other than your own being on the bill<\/span>.<\/span><\/li>\n
  4. Monitor your credit reports regularly<\/span><\/strong> to stay on top of activity you might not be aware of.<\/span><\/li>\n
  5. Buy an<\/span> <\/strong>enhanced title insurance policy<\/span><\/a>. <\/span><\/strong>Many enhanced title insurance policies protect against impersonation or forgery.<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    Because of the large sums of money involved, real estate is a fertile hunting ground for scammers, and one of the most profitable scams is spreading outwards from New York: […]<\/p>\n","protected":false},"author":613725,"featured_media":184686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[],"class_list":["post-187724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/187724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=187724"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/187724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/184686"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=187724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=187724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=187724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}