State Sen. Sylvia Santana (D-Detroit) and other legislators are pushing new state rules that would help victims of deed fraud get their homes back.
Why it matters: Deed fraud — a national problem that’s considered a full-on crisis in Detroit — can lead to homeowners losing their houses and generational wealth.
- Back taxes, cash deals for homes and complicated ownership histories in Detroit can make residents more vulnerable to these scams, according to Donovan McCarty, director of MSU’s Housing Justice Clinic, in an article for The Conversation.
- Extend the deadline for deed fraud victims to file lawsuits.
- Allow victims to recover more losses and attorney fees when they sue fraudsters.
- Stop homeowners from being hit with property tax increases due to fraudulent ownership transfers.
How it works: Deed fraud is when a scammer transfers property they don’t have a legal right to. That could mean forging someone else’s signature on a deed. The scammer can then claim ownership and sell or rent it.
- The scammer could also offer to help a homeowner with financial troubles and get them to sign documents that unwittingly transfer their home away.
- These problems can lead to expensive legal fees as homeowners fight for homes they already own.
Zoom in: Detroit City Council hosted town halls early this year to teach people how to recognize these increasingly common scams, according to WDIV…