‘They stole our dreams’: Couple’s retirement plans derailed when thieves steal their vacant Massachusetts home and sell it for half its value
A South Carolina couple had their life savings stolen from their basement without warning.
After purchasing property outside of Boston with the intention of building a home and retiring, they inquire about a missing quarterly tax bill and discover that the property is no longer theirs.
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“They stole our dreams. They stole our property. They took out mortgages on it. They built houses on it,” Dr. Omar Jaraki told Boston CBS affiliate WBZ. It is being built.”
Through his own investigation, Jaraki discovered that someone impersonating his wife, Hara, had asked a local real estate agent to sell the property. After being shortlisted, it sold for $525,000, almost 50% of its actual price. To close the deal, the scammers sent the real estate agent fraudulent documents containing scans of a fake South Carolina driver’s license and passport that allegedly belonged to Harrah.
Once the transaction was completed, the proceeds were transferred to a bank account before being sent overseas. A house is currently being built on the property, and the Jarakis will work with their attorney to determine the best way to get it back and what to do with the house being built on top of it.
How property fraud leads to land theft
Property fraud consists of two crimes occurring simultaneously: identity theft and mortgage fraud. Any one of them alone can be devastating, but both together can lead to property theft without the actual owner’s involvement.
The U.S. Department of Justice broadly defines identity theft as a crime in which “someone unlawfully obtains and uses another person’s personal data in any way that involves fraud or deception.”
Identity theft can occur in several ways, from a large-scale data breach to presenting a pre-approved credit card in the mail or in a trash can. With the right combination of information, identity thieves can use your information to open a line of credit in your name, add authorized users to your credit card, and access your current bank accounts and You can access home loans.
Mortgage fraud is the second part that directly contributes to property theft. The U.S. Treasury Department’s Financial Crimes Enforcement Network has identified the number one cause of mortgage fraud as making false statements during the process. This includes providing fake documents, such as falsifying bank statements or forging documents.
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For the Jaraki family, both of these situations contributed to their property being stolen without their knowledge. Fraudsters used personally identifiable information to steal identities and ultimately sell real estate illegally using fake documents and online techniques.
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How can homeowners fight real estate fraud?
The Jaraki family learned of their situation too late to do anything. But they haven’t given up. They have hired lawyers and are taking both the buyers and the lawyers involved to court regarding the sale.
To deter real estate fraud, many counties in the United States offer free monitoring services that notify homeowners when changes are made to public records in their names. Services are offered through companies such as Property Fraud Alert and Landex. Alerts are sent via email and text when changes are detected, allowing homeowners to stay ahead of the situation and take the necessary precautions to protect their property.
If you are purchasing a large amount but have questions about ownership or the sales process, consider obtaining title insurance before closing. Title insurance can protect real estate buyers from any claims that may arise during the transfer of real estate. This includes legal claims from tax lien holders, contractors who claim to owe you money, or, like in this situation, claims that the property was fraudulently sold.
Finally, experts recommend freezing your credit until you apply for a new account. Freezing credit on your account may prevent unwanted users from accessing your personal data. To add a fraud alert to your credit report, a creditor must verify your identity before deciding on an application submitted by you or someone pretending to be you.
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This article is for information only and should not be construed as advice. PROVIDED WITHOUT WARRANTY OF ANY KIND.
