Detroit deed fraud victims push Michigan bills as Wayne County unit opens 2,913 cases

Michigan legislators introduced a package of bills to help Detroit homeowners fight deed fraud, recover stolen property and avoid property tax increases caused by fraudulent ownership transfers.

State Sen. Sylvia Santana, a Detroit Democrat, is sponsoring the measures along with other lawmakers. The bills would make it faster and less expensive for homeowners to challenge fake deeds in court. They would also extend the deadline for victims to file lawsuits, allow them to recover more losses and attorney fees and stop homeowners from being hit with property tax increases tied to fraudulent transfers.

Deed fraud happens when someone transfers ownership of a property they do not legally control. Scammers may forge a homeowner's signature on a deed or trick residents into signing documents that secretly hand over ownership. Once a fraudulent deed is recorded, the scammer can claim ownership, sell the home or rent it out.

Santana said the package is intended to give homeowners a better chance of getting back property that has been taken from them.

"We've seen where people have actually had their properties … stolen from right under their noses," Santana said.

The bills are among several measures that Santana and Detroit City Council members say are needed to address a problem that has grown across Detroit. The legislation has not yet passed, and Santana said the current package is only a starting point.

"These are just four of many bills that need to happen," she said. "But it is a step in the right direction. I hope we will put more teeth around property protections."

Detroit City Council members have also been pressing for action. Councilmember At-Large Mary Waters and District 2 Councilmember Angela Calloway hosted a town hall earlier this year to teach residents how to recognize deed scams, protect their property and advocate for reforms.

Waters said the problem is increasing citywide, with every council district seeing more cases each year. Seniors are especially vulnerable, she said, and many victims do not find out their homes have been targeted until fraudulent paperwork has already been filed.

"If you take the paperwork to the register of deeds, their job is to file the paperwork. That's all. They don't know that it's theft. They don't know that it's a scam," Waters said.

Wayne County's mortgage and deed fraud unit has recorded 15,889 inquiries and opened 2,913 cases since it began in 2005. The unit is housed in the Wayne County Register of Deeds Office.

Detroit's housing conditions make the city especially vulnerable to deed scams, said Donovan McCarty, director of Michigan State University's Housing Justice Clinic. Back taxes, cash deals for homes and complicated ownership histories can put residents at greater risk, he said.

In July, a local nonprofit homeownership director and a former Wayne County Treasurer's Office employee were sentenced to 90 and 66 months in prison for a scheme to steal about 100 properties from people at risk of tax foreclosure.

Waters said residents need to check their properties regularly and understand what kind of deed they hold. She also urged homeowners to contact local organizations for help.

"People work hard for their property. People work hard to just own a home and then they want to leave it for their next generation," Waters said. "It helps to create generational wealth and then they get robbed of all of that."

Homeowners seeking information or assistance can call 313-628-2363. The Wayne County Register of Deeds Office provides tips for avoiding fraud and accepts complaints through its mortgage and deed fraud unit.