Indiana AG, Local Officials Warn Against Scammers Using Forged Documents To Steal, Borrow Against, Houses

In Indianapolis, Indiana, The Fort Wayne Journal Gazette reports:

• The Indiana attorney general cautioned homeowners Thursday against a new mortgage fraud that lets thieves steal homes and walk away with thousands of dollars in fraudulent loans. Attorney General Greg Zoeller joined the Indiana Recorders Association and the Association of Indiana Counties in Indianapolis to publicize the scheme.

• The Journal Gazette exposed the practice in an April 5 story by “stealing” the Lincoln Tower in downtown Fort Wayne in less than an hour, identifying the new property owner as Johnny Appleseed. The newspaper prepared a fake deed transferring ownership in the iconic building, which Allen County Recorder John McGauley said his office would have no choice but to accept.

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• Thieves are not interested in the property they steal – they’re interested in showing ownership so they can obtain a fraudulent loan and disappear with the money. That can leave the true property owner holding the bag. “The actual homeowners, through no fault of their own, are at risk of losing their home to foreclosure,” Zoeller said. “Correcting the problem and clearing the cloud off the title could cost the homeowners thousands of dollars.”

• McGauley said the state’s recorders are looking at legislation similar to a law in California that would require a thumbprint along with a notarized signature. A similar requirement takes effect in Illinois this summer.

For the story, see State warns of home-theft threat (County recorders want law tightened on deed filing).