How scammers can take the deed to your home without you knowing

It's likely your biggest investment. You buy a home, and when you get that deed, you assume it's safely yours. But sometimes, it's not so safe.

Capital Bridge Partners Daniel Rabb and Ken Wei held the mortgage on a building in Venice. They said the owner never paid, so they filed a foreclosure.

That's when they discovered there was a problem. They claim the person forged a document reconveying the property to him.

"We immediately called up the trustee that handled the foreclosure and had signed this rescission," said Rabb. "She said that's not us. It's totally fake. In fact, our notary stamp is spelled wrong."

Rabb claims the person was able to file the fake documents with the county and it went through.

"Theoretically, the clerk at the county court needs to look up that stamp number," real estate attorney Arash Sadat said. "Whether they do that or not every time, I'm not sure."

Sadat said it's a fine balance to make sales and transfers easy, but also to make them safe.

"The clerk at the recorder's office needs to be looking at these deeds to make sure there's a notary stamp on it," he explained. "The person who notarized it is approved and registered in the state of California as a notary and the deed also has to be signed."

"The system is definitely an honor system, and it doesn't work," Wei said. "It doesn't work to stop fraud. It puts the onus on the property owner, and the legal system is not adapted to this modern technology. Anybody can create notary stamps."

The scammers are sometimes called title pirates, and the FBI said it's happening all over the country.

You would think if it's something so obvious, getting a home title back should be simple. But it's not. It involves going to court.

"The person who forged the deed is now the property owner," Sadat explained. "So, for you to get title back to that property, they would have to either grant you a deed, restoring your property or you have to go to court and have the court make an order saying you are the titled owner of this property."

Of course, that is not cheap.

"To take a case, really any case through trial, it's easily $50-$100,000 plus in attorney fees alone," Sadat said.

For Rabb and Wei, it's become a fight that has already dragged on for months.

"If everything goes our way and nothing happens, and we file everything on time and we are astute, it's -- at best -- a year, more like 15 to 18 months," Rabb said. "If he puts up any sort of resistance, it could be a couple to three years."

What can you do to protect yourself? The Los Angeles County Assessor's Office has a system called Homeowner Alert that aims to stop fraudulent real estate transactions quickly.

If you sign up, it emails property owners within 48 hours when documents like a deed or a lien is recorded in connection with their property. That way you can quickly address any suspicious or illegal activity. Before, it would take about 30 days to be notified by mail.

"Knowing sooner is always better," Sadat said. "The longer a trespasser stays on your property, the more difficult it's going to be to get them out. So absolutely, the sooner you know that either someone is trespassing, or someone is taking title of your property, the better."