Ok, I am totally confused. I got a call today from the sheriffs department asking to talk to my wife. Told her he got a call from a small police department investingating a fraud case. I called back, and yes, he was a dective with the sheriff. The officer in the small town called and I took the call. Looked up the town on the internet and verified he worked there and number was correct. He stated that a young lady in the town was having problems because my wife was using her social security number. He had all the data on my wife, including age, social security number and age. He claimed my wife took out a huge loan on our house using her name and the other social security number. He also stated he has over 450 pages of paperwork. He kept asking us to verify our loans and amounts, which I did only vaguely, not giving spefic amounts or banks. I finally asked for a copy of the file, and he stated he would talk to his supervisor and call back. Well, turns out he claims to have a memo from the FBI stating my wife took out a loan against our home using his victims SS# and my wifes name.
After over an hour on the phone with the officer, I still don't know what he thinks is going on. From what I can tell, he really doesnt
either. The only real info I gave him was to verify who was holding my second morthage. But, he seems to have all my information from some where else. Unfortunately for him, I am very active in real estate and he is holding over 450 documents.

So my question is this? My wife's credit is clean. I will run a courtesy title tomorrow and verify our properties title is clean. If it is, at what point do I tell this guy to go fly a kite?

If it were me, I think I would ask for a copy of the memo from the FBI or I would call the FBI and explain this to them.

I would tell him to contact my attorney.

Institutional lenders will seldom loan without a title commitment, especially now days.
Here's a link to the Pierce County Auditor's site. You can check the recorded documents by name and other ways.

http://hartweb.co.pierce.wa.us/localization/menu.asp

The FBI would probably know if this is a scam. Id call.
Wouldnt hurt to call the social security administration and see if they can verify your wifes ss number.

Id also call the reporting agencies and open a fraud alert, until you get this resolved. For all you know someone could have transposed a couple numbers or someone might have been issuing false numbers. A lot of workers have additional people paying fica into their accounts, because illegal aliens obtained those numbers.