Deed theft is common in Georgia. Here’s why.

January 16, 2024
Clara Cummings, for ANF

ATLANTA, Ga. (Atlanta News First) - Metro Atlanta families are coming home to notices saying their homes are no longer theirs, and arguing their properties were wrongfully sold without their knowledge.

“People have a lot of stuff getting thrown at them every day: how to get to work, how to get my kids feds or get them lunch,” said Rick Alembik, a veteran attorney specializing in cases of deed theft, wrongful foreclosure sales and fraudulent loans, all ingredients for real estate fraud. “There’s so much coming at people these days, life is so complicated.

“If it happens to you, it’s a life-altering event,” he said.

Eric Clark experienced that life-altering event. His story that appeared on Atlanta News First Investigates last fall resonated with dozens of families who said they’re in similar circumstances.

Clark received a notice on his front door that said his Ellenwood home had been sold at a foreclosure auction. In a police report, he claimed someone took out a fraudulent second loan on his home and forged his signature. Clark never paid the loan because he says he didn’t know about it.

He also is accusing fraudsters of filing fake deeds on his property.

According to county clerks, deed thefts are common. Current Georgia law allows property paperwork to be filed in clerks’ offices without proof of identification.

“It’s harder to cash a $5 check at a bank than it is to record a deed that could steal the title to someone’s home that they’ve worked for decades to build up equity in,” Alembik said, pointing to little government oversight in real estate transactions across Georgia, starting with the foreclosure auction process.

How to help protect your property from real estate fraud and theft

Georgia offers a property fraud registry where you can sign up your home. It doesn’t stop fraud, but it alerts you anytime paperwork is filed on your home.

Atlanta News First Investigates attended a Dekalb County foreclosure auction. Although the auction took place on the front steps of the county courthouse, the bidding process isn’t run by the government or any state official, but a private company called Auction.com. Anyone can be a bidder.

“They just have to tender funds in full,” an Auction.com staffer said. “They have to have the money on them to buy the house today,” and it can be in the form of cash or a cashier’s check.

The private company runs auctions across Georgia. Depending on the day, they’re only in certain ones. For instance, “the first Tuesday of the month, we may be in 90 [counties],” the worker said.

Onsite staff have no role in investigating whether a home should or shouldn’t be on the foreclosure auction. They only know what the bank tells their company.

In Georgia, if a homeowner repeatedly doesn’t pay their mortgage loan, the loan will default and its debt will rise. If the homeowner and bank don’t agree on a repayment plan, the bank informs the foreclosure agency to put the property up for auction.

At the auction Atlanta News First Investigates attended, 10 homes were on the list.

But in the months before, several metro Atlanta homeowners tell us their homes were wrongfully on a list for foreclosure:

Stacy: “I lived in my home for 10 years and it was wrongfully [taken] from me.”
John: “My home was stolen from me.”
Annie: “My house that has been paid for since 1979 was stolen from me.”
Malik: “[It was] identity theft. I’ve asked for due process in Dekalb County Superior Court.”
Nicholas: “My home of nearly 10 years was stolen from me by fraudulent foreclosure practices.”

Many cases reviewed by Atlanta News First Investigates involved multiple allegations at once, such as deed theft and fraudulent loans.

Resolving cases of real estate fraud can take years and hundreds of thousands of dollars, but Alembik said real estate fraud is not a complicated crime.

“If I really wanted to, I could get your social security number and all your private information,” he said. “I have people who can get that. I wouldn’t do it because it’s illegal, but there’s people who lack ethical standards who could do it.”

Alembik suggests property fraud is more common in states like Georgia because it’s a “non-judicial state,” meaning there is no court oversight beforehand, and courts only get involved after a lawsuit is filed.

Attorneys like Alembik believe courts should oversee the entire process from the beginning. For instance, if any bank or debtor wants to foreclose on a property, they must go to court to prove why.

“Every state is a little bit different but generally speaking, half the states are judicial and half are non-judicial,” he said. “Where there’s some judicial supervision, it’s inherently more fair.”

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Disclaimer:
Equity Protect acknowledges that some advertised services may exaggerate the threat of deed and title fraud. Our aim is to provide accurate information about the evolving risks of seller impersonation and deed fraud. While it is true that the overall incidence of home title theft is relatively low, certain factors can increase the likelihood of a property owner becoming a victim of seller impersonation and deed fraud. Our data suggests that while 25% of people nationwide may be at high risk for title fraud, among our premium users, 1 in 11 have faced actual fraud attempts, with all affected properties (excluding family disputes) classified as high-risk. The risk assessment offered is based on current fraud attempts, evolving tactics, and statistics from reputable sources such as the American Land Title Association (ALTA), which recently shared that 28% of title companies experiencing at least one incident of seller impersonation fraud in 2023. We strive to educate the public about genuine vulnerabilities while dispelling misconceptions. Users should be aware that while we provide valuable insights, individual circumstances may vary, and our services should be considered as part of a comprehensive approach to property protection.