Deed theft continues to devastate homeowners

ST. LOUIS, Mo. (First Alert 4) - Deed fraud continues to devastate homeowners.

Last month, the Department of Justice reported that James L. Townes, Jr. and Charnay Bartlett pleaded guilty to using forged signatures and fraudulently obtained notary seals to take control of 14 St. Louis area properties.

The FBI Internet Crime Complaint Center reports that real estate fraud, which includes deed theft, cost victims $275.1 million across 12,368 complaints in 2025.

“It has been trying, it has been emotional,” said Tammy Legette.

Legette says after her grandfather died in 2024, she discovered the Charlotte, North Carolina home that her family inherited had been quietly transferred into another relative’s name.

“I have the old deed, which was original, that my grandfather had from 1972, along with this new deed that is dated January 28, notarized January 28, 2025,” she explained.

Court records show that a relative pleaded guilty to being “an aider and abettor of the illegal notarization of a North Carolina non-warranty deed.”

But two years later, Legette says her family is still fighting in court to straighten out the ownership of the property.

“I became angry at the system that allowed this to happen,” she said.

Legette now works as an advocate to help educate homeowners about the crime.

Retired FBI Special Agent Tom Simon investigated title theft for years.

“The way they do that is by filing false deeds with the clerk’s office in your county to transfer the ownership of your home to the bad guys, or a synthetic identity that the bad guys created,” said Simon.

He says AI makes it easier to create fake documents. Criminals then either sell the home, or use it as collateral to take out loans, devastating the owners.

“They receive foreclosure notices in the mail, to be notified that not only do they not own their home, but they’re going to be kicked out of their home because they haven’t paid this home equity line of credit,” said Simon.

So what’s being done?

An Illinois law took effect in 2026 that requires counties to establish alert systems, a review process to submit suspicous documents to a judge, and a pathway for owners to seek relief from offenders.

In Missouri, deed fraud is a felony. But a bill to impose harsher penalties that passed through the House died in a Senate committee this year.

All Missouri counties, and many in Illinois, participate in the “Property Fraud Alert” program, where homeowners can sign up for free alerts if any documents are filed against their property.

This does not prevent deed fraud, but can alert homeowners right away to take action.

Some companies offer title theft insurance, such as Home Title Lock, that also cover legal costs for resolving deed fraud.

If you are a victim of deed theft, notify law enforcement, the county recorder, and an attorney right away.