There's a growing threat in real estate that every investor needs to know about.

It's called deed theft. And according to a new report, it's spreading beyond just major cities.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

According to a new article from bigger pockets, deed theft and

fraudulent tax lien sales are becoming a bigger problem across the country. And landlords with

free and clear properties may be some of the biggest targets. In New York City, deed theft

complaints jumped to more than 500 last year. That's up sharply from

just two years earlier. The surge has become so serious that city leaders recently launched

a new office of deed theft prevention. They also paused tax lien sales while officials review the

system. So what exactly is deed theft? It's when criminals file fake ownership

documents with a county recorder's office. They use forged signatures, fake IDs, and fraudulent

quit-claim deeds to make it look like they legally own someone else's property. Once that paperwork

is accepted, the scam can move fast.

A criminal may try to sell the property.

They may take out a loan against it, or they may rent it out and collect the income while the real owner has no idea what's happening.

And for real estate investors, this is where it gets personal.

Out-of-state owners can be very vulnerable. So can investors who

hold properties inside LLCs with outdated mailing addresses. Vacant homes, vacation rentals, and

paid-off rentals can all become easy targets if bills, notices, or public filings go unchecked.

And here's something many investors may not realize.

Standard title insurance may not fully protect you after you've already purchased the property.

...