EFFECTIVE JUNE 1ST, Seller's Thumbprint a Requirement to Sell A Home In Chicago, Cook County IL!
ENHANCED ID-VERIFICATION MEASURE AIMED AT REDUCING MORTGAGE FRAUD!
In 2008, Cook County IL - the county in which the City of Chicago is located, became one of the worst counties in the U.S. for incidence of mortgage fraud. According to the Mortgage Asset Research Institute, the county ranked Number 3 nationwide!
What to do for increased vigilance and security, and to reduce the likelihood of fraud?
After a new IL Law takes effect on June 1st, notaries who witness certain Real Estate Closings in Cook County will be required to fingerprint the seller as a way to further verify their identity.
As reported by Mary Umberger in today's Chicago Tribune, the law will require the notary to capture the seller's right thumbprint was signed into IL Law last Fall. It applies only to sellers of single family houses, condominiums, and small apartment buildings with less than four units.
The prints must be kept on file for seven years, and cannot be released or disclosed without court order.
Mortgage fraud has grown in recent years, as unscrupulous lenders have conspired with straw buyers and fictitious sellers and attempt to transfer title to a property. Often, the subject property is a likely foreclosure, and the "seller" is not the true owner of the property.
This new law is based on the assumption that the scam artists would be less likely to perpetuate the fraud if their identity is fingerprint verified.
There is considerable resistance to the change, especially by those seeing it as an unnecessary invasion of privacy. Others see yet another layer of bureaucracy delaying the already-complex real estate selling process.
Currently, buyers and most sellers are required to provide copies of their driver's licenses or state-issued ID Cards as proof of identity. Crime enforcement personnel, including the FBI, however, remain concerned that these ID cards can be easily forged.
A similar law was enacted in the Los Angeles CA area about ten years ago. One notary group in that area attributes the CA law to reducing attempts at mortgage fraud.
The new law adds one more complication to sellers of Cook County Property who reside out of state. These sellers will now be required to provide the necessary thumbprint, or visit an IL Notary who can take the thumbprint.
No longer can sellers' attorneys, often notaries themselves, and who well know their clients, simply vouch for their out-of-state client without an in-person visit for necessary fingerprinting.
But will it reduce mortgage fraud here in Cook County and in Chicago? Only time will tell!
DEAN MOSS & DEAN'S TEAM CHICAGO
