Thursday, December 10, 2015

Macomb County proposes real estate fraud alert system

Macomb County proposes real estate fraud alert system
By Christina Hall, Detroit Free Press11:34 p.m. EST December 8, 2015
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(Photo: Christina Hall/Detroit Free Press)
Fraud on real estate transactions?
It’s real and a problem that Macomb County Clerk/Register of Deeds Carmella Sabaugh wants to curb.
Her office is proposing a fraud alert system to make real estate transactions safer and help protect private property rights by reducing the risk of fraud through the use of real estate consumer alert notices.
The letters will include the property address and book and page number where owners can look online for free to search their records. Documents will cost $6.
The fraud alert system would cost about $61,782 a year, starting Jan. 1, money that is available in the Register of Deeds Technology Fund.
“This is a big one,” Sabaugh said today of the effort, one of many by her office has made to make services easier for users, such as kiosk check-ins and text alerts for jurors. “Your home is your castle … help protect that home.”
Deputy Register of Deeds Craig Jones told county commissioners that said the office sees three kinds of fraud, including a tax or contractor’s lien on a property that owners have no knowledge of.  If a person doesn’t search his or her property, fines and penalties can add up, he said.
The office also sees situations among siblings where one child will ask their mother or father to sign documents and the parent doesn’t know what they are signing and other siblings are unaware.
The system would send consumer protection courtesy notices to all the names on the property, which could be helpful to landlords, officials said.
It could also help property owners who have paid off their mortgages but the register of deeds’ records still have the file open. That would prompt the property owner to call their bank or credit union to make sure those records are discharged, officials said.
Jones said the system probably will be up by the beginning of 2016. The Register of Deeds has handled about 162,000 documents this year, which is up a little from last year, he said.
The office worked with the FBI for the project and Jones has an agency contact should fraud be reported.
According to a packet given to county commissioners on the proposal, Michigan was 11th in the nation with significant mortgage fraud activity.
The Oakland County Clerk/Register of Deeds Office offers a free service to help people verify their personal land records to fight fraud, according to its website. The service allows property owners to see if unauthorized documents have been recorded against their property in that county’s Register of Deeds Office. It also has a fraud alert system to alert someone by email or phone of any recordings in their name or business name once they register, according to the website.
In Wayne County, the Register of Deeds has a property records fraud unit to receive complaints, investigate, charge and prosecute people for criminal and fraudulent land record activity, according to its website. The office collaborated with the county prosecutor and sheriff to establish the first in the nation property fraud task force.
Preventing real estate fraud is something everyone should be monitoring, Sabaugh said.
“If you plan to do anything – moving or taking out a home equity loan – you can’t do it if there is a cloud on your title,” she said.
Contact Christina Hall: chall99@freepress.com. Follow her on Twitter: @challreporter.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

1 comment:

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