I have been waiting to see a story like this one.  I am surprised it hasn't happened sooner. Please see Indictments Issued Following Fraudulent Real Estate Actions.

It seems a man, with the aid of a title examiner, sold properties he didn't own. I'm not sure exactly how the arrangement between them worked, but I can imagine that it was something like this:

A man sells property another person, also in on the scheme, and directs the closing to a small title company where he knows the title examiner, another co-conspirator.  The title examiner falsifies the search to show his friend in title to the property free and clear.  After the closing they all walk away with the full loan proceeds.

Of course, when they stop making payments, assuming they make any of them, the new lender starts a foreclosure proceeding and they find out that their borrower doesn't even own the property.  Of course, they all get caught but not until they have created millions of dollars in losses for the lenders, title company, title insurer, E&O insurer, etc. 

What would happen if they had used the proceeds to make some of the payments until they were all in the Bahama's sipping exotic drinks on the beach before anyone realized what had happened?  Important message - know and trust your title examiners!

It never ceases to amaze me how brazen some criminals are.

Best,
Robert A. Franco
SOURCE OF TITLE