Posted by Linda_in_MI on 11/17/11 10:07am
Msg #404309

Title company over forged signatures (Illinois)

"A title insurance company was forced to pay a man more than $90,000 after a woman fraudulently signed the man's name to papers, in effect deeding his property to another person without his knowledge or consent, according to a recently filed lawsuit.

Ticor Title Insurance Company filed a lawsuit Nov. 7 in St. Clair County Circuit Court against Yvette Reed, Diane Lee, Joseph Reed, Alfredo Vallejo Jr., RLI Corp., CNA Surety and All-American Escrow and Title Services.

In its complaint, Ticor alleges it paid Joe Lee $90,000 after he filed a lawsuit against the company. Joe Lee brought the suit against Ticor after he discovered that his interest in property at 4645 South Lamon Ave. in Chicago had been taken from him, according to the current complaint."

http://www.madisonrecord.com/news/239754-title-company-sues-over-forged-signature-and-fraudulent-deed

Reply by jnew on 11/18/11 9:55am
Msg #404410

I can see the suit against the notary. I question the suit against the title company, unless their were other factors than shown in the article. One of the risks for claim accepted by the underwriter is forgery. Most title agents rely on the record to establish title. Discovering a forgery is probably beyond the capacity of most title agents unless it is a glaring discrepancy. The grantee of a deed may not have his signature in the record, especially if Joe Lee took title and did not executed a purchase money mortgage. The title company would have no way of knowing that the quit claim was a forgery, since they had nothing of record to compare it to. If Joe Lee had a mortgage of record, especially a satisfied mortgage, it would be highly doubtful that the searcher or examiner would take the time to compare signatures on documents to that extent. My guess is that Ticor had some evidence that All American was either in on the scam or had some knowledge of it. If not, the liability of title work is reaching an unsustainable level.