Legislature Fighting Title & Mortgage Fraud

You've seen and heard the commercials of companies advertising programs that can prevent mortgage and title fraud. They claim thieves can deed your property to themselves and then mortgage or even sell it without your knowledge. In fact, they may have done so already. You may have lost all your home equity. You'll discover the fraud when you are evicted by a foreclosure or new owner.

The commercials and some examples of it actually happening have spurred the Alabama Legislature to develop a law to deal with it. Senate Bill 292, the Alabama Property Protection Act of 2026, was unanimously passed by the Alabama Senate on Tuesday. Companion legislation House Bill 426 has also passed in the House without a no vote.

“People are actually going in and they don’t even live in the country, they are trying to slip in and buy land without you knowing it,” House bill sponsor, Houston County Rep. Paul Lee (R-86) told house members during floor debate. “People that are actually the target are those that have a home paid for, they’re the hottest target I might say. Those people come in and actually make a quick buy and the people that own the property have no idea that’s taken place until much later, until they see some sort of activity on the property.”

The legislation establishes a statewide notification system to alert property owners when documents or liens are recorded on their property. The bills also give the Alabama Securities Commission more authority to investigate fraud and enforce the law.

The bills received the backing of the Alabama Realtors Association, Alabama Bankers Association and the Land Title Association of Alabama.

Experts say, while land and title fraud is not yet an extensive problem, it is a threat. AARP takes it serious enough to publish the warning signs for title fraud: