City Council Proposes Bill to Combat Deed Fraud and Protect Homeowners

City Council members convened a public hearing on January 14, 2025, to discuss Intro 1086, a proposed bill aimed at protecting homeowners from deed fraud and title clouding. The legislation seeks to enhance safeguards for vulnerable property owners by requiring timely notifications when documents related to deeds or mortgages are recorded.

Proponents of Intro 1086 highlighted the increasing prevalence of fraudulent activities targeting homeowners, particularly those at risk of foreclosure. The bill would provide resources to alert homeowners about unauthorized changes to their property titles, thus preventing deceptive tactics such as signing fraudulent documents under duress. Legal Aid Society representatives emphasized the emotional and financial toll these scams often inflict, especially on senior homeowners. They urged the council to act swiftly to pass the bill in light of these issues (Source: https://youtu.be/CnbBjKdwW2A&t=1271).

Intro 1086 specifically addresses the lack of oversight currently present in property transaction processes. Testimony indicated that scammers frequently file false claims against properties, impeding rightful owners’ efforts to rectify their financial situations or secure loan modifications. The bill’s requirement for notifications is seen as a vital step towards transparency and security for homeowners whose properties are at risk (Source: https://youtu.be/CnbBjKdwW2A&t=1325).

Moreover, advocates suggested that the bill should explicitly include protections for heirs who have not begun Surrogate Court proceedings, as these individuals are often targeted by predatory practices. The proposal aligns with recommendations from the Consumer Financial Protection Bureau, which provides guidelines for potential heirs to assert their rights effectively (Source: https://youtu.be/CnbBjKdwW2A&t=1534).

During the hearing, various stakeholders voiced their support for Intro 1086, noting its potential to fortify existing measures against unauthorized deed transfers and enhancing property owners’ awareness. The Department of Finance’s notification systems, such as the Automated Citywide Information System (ACIS), were discussed as valuable tools that provide homeowners with timely alerts about activity regarding their properties (Source: https://youtu.be/CnbBjKdwW2A&t=1481).

The consensus among participants was clear: passage of Intro 1086 would be a significant step in addressing deed fraud and protecting the home equity of vulnerable New Yorkers. The council is expected to deliberate on the bill further in upcoming sessions, with many urging a swift resolution to alleviate the threats homeowners face (Source: https://youtu.be/CnbBjKdwW2A&t=1381).