Protecting citizens from mortgage and property fraud

Rhea Jha
·3 min read

(PUEBLO, Colo.) — In response to a surge in mortgage and property fraud nationwide, the Pueblo County Clerk and Recorder’s Office has launched an initiative to alert property owners of potential fraudulent activities targeting their assets.

Pueblo County Clerk and Recorder Candace Rivera emphasized the urgency of the issue, citing cases where individuals have filed deceitful deeds, mortgages, or liens against properties without the owner’s knowledge or consent.

Property owners will now receive notifications whenever their name appears as a Grantor or Grantee on public records. This early warning system gives owners the opportunity to take immediate action if they suspect fraudulent activity related to their property.

“We can’t prevent the fraud. However, it will add a layer of protection to the citizens,” said Rivera.

Previously, Rivera said property owners often discovered fraudulent claims only when attempting to sell their property, encountering unexpected liens. Rivera said her office is committed to being proactive in notifying customers about any filings against their property to prevent such occurrences and turning these cases over to the District Attorney’s office.

Rivera acknowledged that while mortgage and property fraud is a significant national concern, it has not yet become widespread in Pueblo. Rivera noted that since assuming office in November 2022, her office has encountered only two cases of such fraudulent activity locally.

Yet, 10th Judicial District Attorney Jeff Chostner underscored the significance of the measures taken by the Clerk’s Office.

“They are the kind of cases that kind of come in episodically. You may go a year or two and not see any, and then you may see three or four as folks get more organized down the road,” said Chostner.

Donald Valdez, Supervisor for the Recording Department highlighted the potential vulnerabilities, particularly among senior citizens, who are often targeted by fraudsters seeking to exploit property assets.

In light of the presidential election year, Chostner also stressed that these crimes, typically intensify during this time, with elected officials, as the primary targets. He says incumbents, county attorneys, city attorneys, and judges have been notably affected by such fraudulent activities.

Chostner said these crimes are often motivated by discontent with the political system, and carry severe penalties. He cited instances four years ago where perpetrators received lengthy prison sentences of 34-48 years for filing fraudulent liens.

“A small number of people can wreak havoc on the operation of government… I’ve seen liens as little as $125. I’ve seen liens as large as $4 billion, so that certainly grabs the attention of property owners,” said Chostner.

Chostner commended the efforts to identify spurious liens promptly, emphasizing the importance of early intervention.

“I think this provides a warning to [criminals] and the public that what they’re doing is illegal activity and that the system will respond to it,” said Chostner.

To mitigate the risk of deed fraud, the Clerk’s Office recommended several preventative measures for property owners:

  • Check with the Pueblo County Clerk and Recorder’s Recording Department at least once a year to verify no deeds or mortgages have been recorded on your property without your consent.

  • Verify with the Pueblo County Assessor’s Office and Treasurer’s Office that they have the correct mailing address for you or the person who should receive notices about your property.

  • Contact the Pueblo County Assessor’s Office and Treasurer’s Office if you stop receiving your property notifications and tax bills.

  • If your property is vacant, check it often to make sure it is not occupied illegally. Ask someone you trust to look after your home if you are going to be away for a long period of time.

  • When a family member passes away and someone else inherits the property, make sure you update the deed with the new owner’s name.

  • Discuss with your trusted family members before making any decisions that affect ownership of your property, such as adding or removing someone from a deed or taking out a new mortgage, reverse mortgage or second mortgage.

For further assistance and information, property owners are encouraged to contact the Recording Department at (719) 583-6629 or via email at recordings@pueblocounty.us.

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