A grieving family has learned their late father’s home has been sold in an identity fraud scheme — something the real estate agent says should never have happened.
When 84-year-old Jerry Gottlieb died in 2018, his children came together to organize his affairs and plan his funeral.
His daughter, Debi Gottlieb, agreed with her brother to take some time before cleaning up her father’s home in Scottsdale, Arizona, while lawyers processed the will.
But in December 2019, Gottlieb noticed a strange error in county tax records that the family’s lawyer was reviewing.
Little did she know she would receive a shock that she would never forget.
“So I got his address. [online]”It indicated that it was owned by Zillow and that it was for sale,” Gottlieb told New Orleans-based Fox News affiliate WVUE in 2022.
Read more about housing fraud
“And then it was cleared away and I [the real estate listing] And it was empty,” she added.
Gottlieb said at first she couldn’t believe she’d been scammed.
“Everything my dad owned was in that house. I cried and got in my car and headed there as fast as I could.”
However, when she arrived home she discovered the locks had been changed.
She quickly found out the name of the real estate agent who sold the house and contacted him along with the police and her lawyer.
Gottlieb and her family were victims of deed fraud, the illegal taking of real estate.
Deed fraud is worse than ever
Gottlieb’s lawyer told local reporters that he has seen many cases of deed fraud but has never seen anything as extreme as this.
“We’ve handled similar cases before, but nothing as extreme as this,” attorney David Degnan said.
This is the second time Gottlieb’s home has been put up for sale without her knowledge, and she’s realized these types of scams are more common than many people realize.
What is deed fraud?
Deed fraud is a general term used to classify any fraudulent scheme used to illegally steal someone else’s home in a seemingly legitimate way.
Some forms of these scams follow typical con-artist practices, with scammers using slick talk to prey on hapless targets, sometimes promising loan forgiveness or mortgage refinancing.
Also, as with many deed fraud schemes, the scammer may forge documents showing they own someone’s home without the true owner’s knowledge.
South Carolina real estate attorney David Fleck said technological advances have allowed more sophisticated scammers to make deed fraud commonplace.
“Twenty-five years ago, it wasn’t easy to forge a document. Now, literally, there is technology on every computer to create believable fake documents, and you can even buy fake notary seals online,” he told Realtor.com.
“So the technology has very quickly outpaced the systems we have in place to prevent this,” Fleck warned.
With any form of deed fraud, victims rarely realize they are being scammed until much later, when they try to apply for a loan or need documentation on the home and discover they are no longer the owner.
The only way to regain ownership of your home may then be through an emotionally exhausting and drawn-out legal battle.
Luckily, Degnan was able to help Gottlieb get her home back.
“Unfortunately, in 2019 Zillow became aware of identity theft related to the home we purchased, and they withdrew the sale and returned the deed to the family,” Zillow said in a statement to WVUE.
But Gottlieb said it’s not that simple.
“We had to threaten. It wasn’t easy. He had to send a demand letter to Jiro.”
And despite getting her fortune back, she still feels her family lost out.
“We got our house back but none of our family belongings were left. All our family photos were gone. They had been thrown away. It was really hard,” she said.
How to prevent certificate fraud
Experts told local reporters that 90 percent of deed fraud cases are committed by friends and family, with the remaining 10 percent committed by more experienced criminals.
But according to Rosie Romero, a home expert and host of the home improvement show “Rosie on the House,” there are ways homeowners can protect themselves from deed fraud.
Tips for Real Estate Agents to Avoid Deed Fraud
Deed fraud affects thousands of homeowners every year. Here are some tips to help protect your property.
- You can set up property notifications on Google or your local government website, so you’ll be notified if a property goes on sale.
- Work only with experienced, reputable real estate professionals to ensure your information doesn’t fall into dangerous hands
- Be clear about how you want to receive notifications from the Real Estate team: Only reply to messages from known senders.
- Invest in title insurance for extra protection
She recommends signing up for a local real estate fraud notification program, like Arizona’s FraudGaurdInfo, and setting up Google alerts for the property’s address and parcel number to find out if it’s for sale online, according to the Arizona Daily Star.
Romero also told potential home buyers to work with a trusted agent, lending institution and notary public.
“Talented Real Estate Agent “They’re going to check your county tax records. They’re also going to check identification to make sure the person you’re working with is who they say they are,” she said.
“Real estate agents have a registration company that they recommend and trust. The registration company will investigate any liens, easement records and encumbrances that may be placed against the property (this includes any violations of zoning laws and Homeowners Authority rules),” she added.
