Receiving a Very Strange Letter
In March 2023, Gordon received a letter that made him stop in his tracks. It was from his title company, and it congratulated him on the $200,000 sale of his land plot in Arizona.
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But Gordon hadn’t put the land up for sale, let alone actually sell it. He was still planning to build his dream home on the property as soon as he was ready to retire.
Noticing Something Fishy From The Start
Gordon told the press that he immediately knew something had gone seriously wrong when he “noticed the last four digits of the social security number were not mine and the address was wrong.”
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As he was soon to find out, he had in fact been a victim of an ever-growing problem in the US called “home title theft.”
Title Company Misses Several Factors Indicating Fraud
Gordon also told the press that he believed the title company should have noticed this was a fraudulent sale from the get-go as many of his details were entered incorrectly.
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“There were several really odd things that had been ignored,” Gordon said. “The notary that they used was five-and-a-half hours away in an entirely different county from where the documents were signed.” Also, the deed had Pima, Arizona, crossed out and Bexar, Texas, written in.
A Spike in American Real Estate Fraud
Sadly, Gordon is not the only victim of home title theft, in fact, it’s become quite a problem throughout the country.
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Almost 12,000 people in the US experienced home title theft in 2022 alone, which, according to the FBI, is a 64% increase from the year before. These 12,000 people lost a total of more than $350 million, so it’s safe to say that real estate fraud is quite a problem.
A Shockingly Easy Scheme
Here’s how it works: real estate criminals steal identities in order to take ownership and sell a property that they never paid for.
Source: Alamy
But Gordon feels as though it should have been much more challenging for a criminal to steal his identity to make the sale. He told the media, “I can’t go and cash a check in a bank for $20 without two forms of identification. And you’re doing hundreds of thousands of dollars in financial transactions, and you have zero processes or feel any responsibility to confirm identities?”
Making Regular Payments, the Land Was Undoubtedly Gordon’s
There was no doubt that William Gordon was the rightful owner of the sold three-and-⅓ acre plot of land in Arizona.
Source: TripAdvisor
He had the title from the original purchase in 1999, as well as receipts from regular mortgage payments over the past twenty four years. In fact, Gordon only owes about $9,000 of the original $76,500 for the land.
Recorder’s Office Unable to Come to His Rescue
When Gordon realized his land had been stolen and sold, he first contacted his title company, who told him to call the county recorder’s office in Pima, Arizona. But they immediately told him there was nothing they could do to help.
Source: Pima County Recorder
Pima County Recorder Gabriella Cázares-Kelly told the press, “We rely on title companies, on notaries – which is why they are required to have insurance – because it is ultimately up to those companies to have the safeguards to ensure that they’re dealing with the correct property.”
Calling in the Big Guns
With no help from either the title company or the county office, Gordon decided to contact a lawyer. He reached out to Realty ONE Group Integrity, a law firm that has handled dozens of real estate fraud cases in recent years.
Source: Realty ONE Group
Eric Gibbs, a broker from the firm, spoke directly to the press not about Gordon’s case, but about the home title fraud problem. He said, “In the last three or four months we’ve seen a huge uptick, and it caught everybody by surprise. I’m not saying it never happened before, but not like this.”
What the State Can Do to Deter Real Estate Fraud
With real estate fraud on the rise, many are wondering what can be done to stop this now wildly popular crime.
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The problem is that no one really knows who can and should take responsibility. Jeff Murtaugh, CEO of Realty Executives Arizona Territory explained the confusion perfectly. “The question is, who’s got the liability. Is it the title company? Is it the agents? I don’t think anybody knows that yet,” he said.
So Who Stole Gordon’s Property?
The sad truth is that no one knows who actually stole William Gordon’s property, which means no one has yet been charged with the crime. The notary stamp has the name “Penny Davis” from Texas, though it seems this name was a false identity. So someone – likely in Texas – is still enjoying the $200,000 they made from the fraudulent sale.
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While Gordon is upset that an anonymous criminal stole his land, his blame lies mainly with the title company that allowed the sale. “They could have filed some paperwork with the county, reversed it, and all of this would’ve been fine. But instead they made my life a living nightmare,” he said.
Finally Back in the Hands of Its Rightful Owner
After spending over $9,000 on lawyers, Gordon once again legitimately owns his own land, and the unsuspecting buyers got their $200,000 back.
Soure: Shutterstock
But sadly, Gordon was required to pay off his mortgage entirely due to the debacle, and he had to take that money and the funds needed to pay his lawyers out of his retirement fund.