LANSING, Mich. (WOWO) — Michigan lawmakers are considering legislation designed to help homeowners targeted by deed fraud, a scam that can allow criminals to claim ownership of someone else’s property using forged documents.
The proposed bills in the Michigan House and Senate would make it easier for victims to challenge fraudulent property records, seek the removal of false deeds and protect themselves from financial consequences while their cases are pending according to WILX.
Deed fraud occurs when someone files a forged deed to make it appear they legally own another person’s home or property. Once the fraudulent document is recorded, scammers may attempt to borrow money against the property or sell it to someone else, potentially leaving legitimate owners facing complicated legal and financial disputes.
The legislation outlined by News 10 would establish several protections for people whose property has been targeted. One proposal would speed up the process for expunging, or removing, fraudulent deeds from property records.
The bills would also create a fill-in complaint form that property owners could use to report deed fraud and begin challenging a false deed without having to hire an attorney to prepare the complaint. The proposed change is intended to make the process more accessible to homeowners who might otherwise face significant legal costs while trying to protect their property.
Another provision would address property taxes. Under the proposals, a victim’s property taxes could not be uncapped while a deed-fraud case remained pending. Michigan’s property tax system can tie taxable-value increases to changes in ownership, making the issue particularly important when a fraudulent transfer creates questions about who legally owns a property.
The bills would also extend the statute of limitations for deed-fraud cases from one year to three years, giving victims additional time to pursue legal action.
The proposals address several potential consequences of property fraud, including the difficulty of correcting public records, the expense of obtaining legal assistance and the risk of financial complications while ownership is disputed.
A forged deed can create problems even when the legitimate owner never agreed to sell or transfer the property. Criminals may use fraudulent ownership documents to pursue loans or arrange a sale, potentially involving additional victims and making it more difficult to resolve the dispute.
The legislation seeks to give affected property owners a clearer path to challenge fraudulent filings and reduce the financial burden associated with recovering their property rights.
News 10 reported the proposals were being advanced in both chambers of the Michigan Legislature. The information provided about the bills did not specify their bill numbers, sponsors, committee status or a timetable for final legislative action.
