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In an alarming case of real estate fraud, a couple from South Carolina discovered that their future retirement plans had been shattered when thieves illegally sold their vacant property near Boston, Massachusetts. The couple had intended to build a home on the site, only to find out that they no longer had ownership of it when they noticed a missing quarterly tax bill.
Shocking Discovery
“They stole our dream,” lamented Dr. Omar Jaraki in an interview with a local news outlet. He described the ordeal as not just a financial theft but an emotional one as well. Scammers managed to pose as his wife, Halla, in order to facilitate the unauthorized sale of their property for $525,000—a price significantly below its actual value. Fraudulent documents, including fake identification, were provided to a local real estate agent to complete the sale.
The criminal scheme was elaborate, involving the wiring of the sales proceeds to an overseas account right after the sale was finalized. Now, the Jaraki family faces the daunting challenge of working with legal counsel to navigate the complexities of reclaiming their property while confronting a construction project that has begun on the land they believed was theirs.
The Mechanics of Property Fraud
Property fraud often involves a combination of identity theft and mortgage fraud. Identity theft occurs when someone illegitimately uses another person’s personal information for fraudulent purposes. The U.S. Department of Justice defines identity theft broadly, noting its prevalence through various means, including data breaches and misuse of physical documents.
Mortgage fraud compounds the problem, typically involving false statements or fraudulent documentation during the mortgage process. Such fraud can result in substantial losses for unsuspecting property owners, as in the case of the Jarakis, who were victims of this double-edged crime.
Combating Property Fraud
Although the Jarakis discovered their plight too late to prevent the illicit sale, they are taking legal action against the current owners and the involved real estate agents. In an effort to combat property fraud, some counties in the U.S. have begun providing monitoring services to alert homeowners when changes occur in their public records. Initiatives like Property Fraud Alert and Landex offer notifications via email or text, empowering homeowners to take protective measures swiftly.
For those engaged in real estate transactions, obtaining title insurance before concluding a sale can provide significant protection. This type of insurance helps shield buyers from claims that may arise during the transfer process, including fraudulent sales or undisclosed liens.
Experts also recommend proactive measures such as freezing one’s credit. This action can deter unauthorized individuals from gaining access to personal information, safeguarding against identity theft. Additionally, placing a fraud alert on credit reports requires creditors to undertake extra verification before processing new credit applications, further enhancing security.
Conclusion
The unfortunate experience of the Jaraki family sheds light on the increasingly sophisticated nature of real estate fraud. As such incidents become more prevalent, increased awareness and protective measures are crucial for homeowners and prospective buyers to safeguard their properties and investments.
This article aims to inform and should not be construed as legal or financial advice.
Source
finance.yahoo.com