A couple faced eviction after their home was fraudulently foreclosed based on a forged deed. Despite hiring a handwriting expert who confirmed the forgery, foreclosure proceedings proceeded swiftly. Their home was auctioned to Maverick Land Company LLC, which the couple claims knew of the fraudulent documents. Following a rejected settlement offer of over $300,000, the couple has since filed a lawsuit. Recent reports indicate a significant rise in wire and mortgage fraud, with nearly half of closings in Q1 2025 showing red flags, prompting warnings from the FBI regarding potential scams.
Fraud is a pressing concern across real estate transactions, with nearly 47% of Q1 2025 closings showing red flags for wire or title fraud, the highest rate on record.
Mortgage fraud is up 7.3% year over year, according to Cotality's National Mortgage Application Fraud Risk Index for the first quarter of 2025.
The FBI recently renewed a warning to Americans about an app that could trick victims into losing their entire banking, savings, retirement or investment accounts.
Experts suggest lenders, servicers and consumers can mitigate risk by monitoring county property records, leveraging title protection services, and ensuring loan files are independently reviewed.
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