Homeowners across the country are facing a surge in real estate scams, from “zombie loans” to deed theft and vacant lot sales fraud. Zombie loans involve old second mortgages or home equity lines of credit that resurface years later, often inflated with interest and fees. Despite federal rules prohibiting collection on expired debts, complaints continue to rise, particularly impacting older, lower-income borrowers. In 2023 alone, nearly 110,000 debt-collection complaints were filed with the CFPB.
Deed theft and vacant lot scams are also on the rise, costing unsuspecting homeowners and buyers their property and money. Criminals forge signatures to transfer deeds or impersonate owners of empty land, selling it quickly for cash. In New York City alone, more than 3,500 deed theft complaints were filed over the last decade. The FBI warns that fraudulent land sales can generate anywhere from $10,000 to $1 million. Experts recommend working with trusted title companies, verifying ownership records, and using fraud alert systems to reduce risk.
This story was first reported by News Channel 12 KEYT-CA
