Bills would give deed fraud victims faster path to restore ownership
Sylvia Santana
Michigan homeowners whose property is targeted through forged deeds could use a faster court process to establish their ownership and sue those responsible for additional damages under legislation introduced this week.
The package, backed by Sen. Sylvia Santana (D-Detroit) and Rep. Kara Hope (D-Holt), would also give victims more time to bring legal claims and protect them from property tax increases caused by fraudulent transfers.
Deed fraud involves forged documents that falsely purport to transfer ownership of someone else’s property. Those responsible can then attempt to sell the property, borrow against it or evict the rightful owner.
Although Michigan law provides criminal penalties, victims can face a separate legal battle to correct ownership records.
“Michigan law punishes this crime, but victims still face costly legal battles to restore ownership,” Hope said.
SB 1215-1218 and HB 6433-6436 would create a process allowing homeowners to ask a court to confirm their ownership without a filing fee if their claim goes undisputed for 21 days or there is a related criminal conviction, according to the sponsors.
The package would also extend the deadline for certain legal claims from one year to three years after discovery of the fraud or the conclusion of a related investigation or criminal case, whichever comes last.
Other provisions would allow victims to recover $5,000, three times their actual financial losses and attorney fees from those responsible, and provide protection from property tax increases caused by fraudulent deeds while ownership disputes are being resolved.
Donovan McCarthy, director of Michigan State University College of Law’s Housing Justice Clinic, said he has represented dozens of victims forced to prove they still owned homes they never sold.
“Deed fraud can be remarkably easy to commit and extraordinarily difficult to undo,” McCarthy said.
The Wayne County Mortgage and Deed Fraud Unit has received more than 15,889 inquiries and opened more than 2,913 cases since 2005, according to the lawmakers’ announcement.
Santana said a constituent’s experience fighting to protect his property helped motivate the legislation.
“No one should have to fight to keep what they have rightfully earned,” she said.
The package, backed by Sen. Sylvia Santana (D-Detroit) and Rep. Kara Hope (D-Holt), would also give victims more time to bring legal claims and protect them from property tax increases caused by fraudulent transfers.
Deed fraud involves forged documents that falsely purport to transfer ownership of someone else’s property. Those responsible can then attempt to sell the property, borrow against it or evict the rightful owner.
Although Michigan law provides criminal penalties, victims can face a separate legal battle to correct ownership records.
“Michigan law punishes this crime, but victims still face costly legal battles to restore ownership,” Hope said.
SB 1215-1218 and HB 6433-6436 would create a process allowing homeowners to ask a court to confirm their ownership without a filing fee if their claim goes undisputed for 21 days or there is a related criminal conviction, according to the sponsors.
The package would also extend the deadline for certain legal claims from one year to three years after discovery of the fraud or the conclusion of a related investigation or criminal case, whichever comes last.
Other provisions would allow victims to recover $5,000, three times their actual financial losses and attorney fees from those responsible, and provide protection from property tax increases caused by fraudulent deeds while ownership disputes are being resolved.
Donovan McCarthy, director of Michigan State University College of Law’s Housing Justice Clinic, said he has represented dozens of victims forced to prove they still owned homes they never sold.
“Deed fraud can be remarkably easy to commit and extraordinarily difficult to undo,” McCarthy said.
The Wayne County Mortgage and Deed Fraud Unit has received more than 15,889 inquiries and opened more than 2,913 cases since 2005, according to the lawmakers’ announcement.
Santana said a constituent’s experience fighting to protect his property helped motivate the legislation.
“No one should have to fight to keep what they have rightfully earned,” she said.
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