Tangled Title and Deed Fraud
How to Protect Yourself and Your Family
Elizabeth Shay, Esquire
Homeowners Assistance Program Coordinator
SeniorLAW Center
Roxane Crowley, Esquire
Homeownership Attorney, Philadelphia VIP
Susan Wysor Nguema, MSW
Homeownership Advocate, Philadelphia VIP
(Co-Author, Susan will not be presenting today)
What does it mean to have title to
a home?
 Title is the legal concept of property
ownership.
 A deed is a legal document that confirms a
person’s ownership of property, or that the
person has title to the property
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A Deed
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Why is it important to have title?
 Ability to enter payment plans for back real estate taxes
and water bills
 Access to home repair programs for low-income
homeowners
 Ability to take out a mortgage or negotiate modifications of
existing mortgages
 Ability to sell the property
 Ability to leave the property to someone in your Will
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What is a “tangled title”?
 Tangled Title is a phrase used to describe
problems related to legal ownership of real estate.
 If you live in a home and consider yourself the
homeowner, but your name is not on the deed, you
may have a tangled title.
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Types of Tangled Title
Family Owned Properties (Title is in the name of a
deceased relative)
Lease/Purchase or Rent-to-Own Agreements
Fraudulent Conveyances
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Family Owned Properties
 Problems occur when the homeowner passes
away and family members continue to live in the
home without transferring title.
 Living in a property, paying real estate taxes and
maintaining the property does not make the heir
the owner.
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Example 1:
There was a Knock on the Door
 Harvey owned a house and lived in it with his wife,
Wilma. (Wilma was not named on the deed.) Harvey
died unexpectedly and did not leave a will. Wilma
continued to live in the house alone.
 10 years after Harvey died, Wilma received court papers.
The city was foreclosing on the house because of unpaid
real estate taxes. Wilma called the city and was told that
only the owner can prevent the sale by entering into a
payment plan for the back taxes.
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Example 1:
There was a Knock on the Door (cont.)
 Wilma went to an attorney to have her name put on
the deed to the house. The attorney explained that
because Harvey did not have a Will, the state law
controls how Harvey’s property passes after death.
Harvey’s two children with Wilma and his five children
from a prior marriage all have ownership interests in
the property.
 The only way for Wilma to be the sole owner is to
have all of the heirs transfer their interests in the
property to her. Wilma has never met some of her
stepchildren and has no way to locate them.
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Lease-purchase or rent-to-own
agreements
 What is it?
 Buyer and seller agree that buyer will pay for the
house in installments while living in the property.
When all payments are made, seller will transfer title
to the buyer.
 Why?
 An option for people who want to own, but don’t have
the credit or saving power to purchase outright or to
obtain a mortgage.
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Example 2: Renee and Olivia
 Renee is renting Olivia’s property. Olivia offers to sell
the property to Renee and will accept installment
payments of the purchase price. Renee agrees and
signs the installment sales agreement.
 Renee makes payments for 15 years and continues
living in the property. Renee makes repairs and
improvements to the property. After the final installment
payment, Renee calls Olivia and asks when she will
transfer the deed to her.
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Example 2: Renee and Olivia (cont.)
 Scenario 1
 Olivia tells Renee that she is willing to transfer the deed,
but there is as a mortgage on the property which Olivia
took out after Renee started making her installment
payments. Olivia has been paying the mortgage but can
no longer afford to do so once Renee stops paying her
installments.
 Scenario 2
 After Renee makes her last payment, Olivia tells her the
property taxes have not been paid and the city wants to
sell the property.
 Scenario 3
 Renee has been making payments, but after nine years
the payments start coming back in the mail. Renee drives
out to Olivia’s house and discovers she has moved and
Renee has no information where Olivia is now living.
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Fraudulent Conveyances
Forged Deeds
Contractor Fraud / Home Repair Scams
Mortgage Rescue Scams / Equity Stripping
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Fraudulent Conveyance Defined
 Homes can be sold by persons pretending to be the
owner.
 The true owner’s name is removed from the deed.
 The true owner must then prove, legally, that she
owns the property
 The fraudulent owner can re-sell or mortgage the
property
 How does title get stolen?
 True owner leaves the property due to temporary
move, such as hospitalization, incarceration, military
deployment, or death of owner
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Example 3: That’s MY House!
 Sam lived in the same house for 30 years. At 78, he was
living alone and doing well until he had a bad fall and
broke his hip. Sam had to spend 2 weeks in a hospital
and 1 month in a rehab facility.
 When Sam finally returned to his house, he found a family
he didn’t know living there -- the Kirbys. Mr. Kirby told
Sam they bought the house from Jack for $200,000 three
weeks ago.
 Sam contacted a lawyer and found out that Jack
transferred the property to himself by forging Sam’s name
on the deed. Then Jack sold the property to the Kirbys.
 The Kirbys do not want to leave the house and Sam has
nowhere to go.
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Example 4: Bad Contractor
 Harry sees an ad in newspaper: “Make repairs to your home.
No money down!” He calls the number and arranges for
Robert, a general contractor to inspect the home. Robert writes
up a work order for renovations to the kitchen, bathroom and
roof – price $25,000.
 Harry has bad credit and cannot get a loan to make the repairs.
Robert tells Harry not to worry, that he has a friend in the
banking business who will loan Harry the money and take a
mortgage on his house. A few days later Ben, the banker, calls
Harry and tells him his bank will arrange a loan to Harry so the
work can begin immediately.
 The closing is held in Harry’s house. The loan documents and
mortgage reflect that Harry is borrowing $33,000. A check for
$25,000 is given to Robert for the renovations. The balance is
paid to Ben as appraisal fees and closing costs.
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Example 4: Bad Contractor (cont.)
 The renovations start then stop. Robert tells Harry that
his crew is working on another job but will return to the
house in a few days. No one comes, and Harry calls
Robert again. The calls are not returned. Harry’s house
has been torn apart by the contractors.
 Harry contacts a lawyer and is told that Robert is not a
licensed contractor and has no business address – his
only contact is a cell phone and P.O. box.
 Harry now has a mortgage on his home which he must
pay even though the renovations have not been
completed and Robert has disappeared.
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Example 4: Mortgage Scam/Equity Theft
 Marco lost his job and can’t pay his mortgage. While
watching TV, Marco sees an ad promising to “Save your
home from foreclosure.” Marco calls the number and a
few days later Steve visits Marco at his house.
 Marco tells Steve that he should be returning to work
soon and only needs a loan to tide him over. Steve
agrees to help Marco for an immediate upfront payment
of $1,500. In exchange, Steve will pay the $4,000
arrears on Marco’s mortgage and continue paying the
mortgage until Marco is employed. Marco is told he must
stop all communication with his mortgage company.
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Ex. 4: Mortgage Scam/Equity Theft (cont.)
 Steve prepares a deed for Marco to sign making Steve
the owner of the house. Steve promises to transfer the
house back once Marco returns to work and can repay
the money Steve has paid to the mortgage company
plus interest.
 Marco signs the deed and Steve immediately
refinances the debt, paying off not only Marco’s
mortgage, but taking out an additional $25,000 secured
by the new mortgage.
 Steve disappears with the cash. The new mortgage is
not paid and the mortgage company files a foreclosure
action. Since Marco is no longer the borrower on the
mortgage, he does not learn of the foreclosure until he
received a notice of foreclosure in the mail.
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Prevention & Solutions
How to Avoid & Solve Tangled Title Issues
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Prevention: Family Owned
Properties
 Homeowners should:
 Write a Will to decide in advance who gets the house
 Probate estate of record owner as soon as she dies
 If some heirs of the record owner do not want to keep
their interests in the property, they should sign a deed
giving away their interests as soon as the record owner
dies
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Solutions: Family Owned
Properties
 Probate estate of record owner and find all heirs
to put title in name of heir(s) who actually want to
own the property
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Prevention: Lease/purchase or rent-toown agreements
 Make every effort NOT to enter into these agreements
 Make sure agreement is with the real owner of the property
 How to check: Department of Records in your county
 The agreement should be in writing, include the property
address, signed by the parties, especially the seller, and state
how much is to be paid and for how long
 Notarize and record original agreement with the Department of
Records
 Keep ALL receipts, including receipts for
 Signed receipt from seller for every payment
 Repairs
 Improvements to the property
 Real Estate tax payments
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Solutions: Lease/purchase or rentto-own agreements
 Quiet Title Action in Common Pleas Court
 Settlement or Judicial Order
 Negotiate with the record owner to get title
signed over
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Prevention: Fraudulent Conveyance
Homeowners:
 Never sign any documents that you do not understand
or have not read
 Keep informed & read all mail.
 If the city sends a notice telling you that a deed has been
recorded for your property, investigate immediately and
contact legal assistance.
 Be concerned if you stop receiving the tax bill for your
home.
 House should never appear vacant
 As a neighbor to collect mail, mow grass, and shovel
snow to keep home from looking vacant
 If it seems too good to be true, it probably is.
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Prevention: Fraudulent Conveyance
Mortgage Rescue Scams
If someone promises to:
Save home from foreclosure
Obtain a loan modification
Get extension on time to cure a default, or
Arrange a short sale or deed in lieu of foreclosure
He cannot
Charge a payment in advance
Can’t say “Don’t call your servicer/the bank”
When hiring a contractor:
 Research who you are dealing with
 Attorney General’s Website
 Better Business Bureau
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Prevention: Fraudulent Conveyance
Buyers:
 Buyers Beware
 Title Report
 Title Insurance
 Find out who is living in the house
 Are they tenants or do they have any right to be
there?
 If it seems too good to be true, it probably is.
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Solutions: Fraudulent Conveyance
 Quiet Title Action in Common Pleas Court
 Settlement or Judicial Order
 Check with District Attorney to see whether
they are investigating the scam
 If you suspect fraud, seek legal advice
immediately!
 Create “clouds” on title
 Big problem for true owner if gets a mortgage on
property
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Resources
To find an Attorney or Obtain Legal Advice:
 Philadelphia Legal Service Agencies (Call for intake
procedure)
 Philadelphia Legal Assistance: 215-981-3800
 Community Legal Services: 215-981-3700
 SeniorLAW Center: 215-988-1242
 SeniorLAW Hotline – statewide: 1-877-727-7529
 Must be 60 and over, no income limits
 Philadelphia Bar Association’s Lawyer Referral and
Information Service: 215-238-6333
 Connects callers with private attorneys in Philadelphia; not
free legal services
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Resources
Pennsylvania Attorney General’s Office
www.attorneygeneral.gov
 AG’s Elder Abuse Hotline: 1-866-623-2137
 Call to report abuse or consumer fraud
 Determine if a home-repair contractor is registered:
hicsearch.attorneygeneral.gov
City of Philadelphia
 Department of Records, Reference Division: City Hall Room154
 Research property records, obtain copies of deeds
 Register of Wills: City Hall Room180
 Raise an estate, determine if an estate has been opened
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Questions?
Elizabeth Shay, Esq.
Homeowners Assistance Program
SeniorLAW Center
215-701-3207
Roxane Crowley, Esq.
Homeownership Attorney
Philadelphia VIP
215-523-9570
rcrowley@phillyvip.org
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