Legal Question in Banking Law in California

Savings & Loan lack of diligence ? Relief ?

Daughter tricked mother into re-finance.Loan closed 7/18/2005. Loan in mothers name solely. Mother 67 yrs. of age at the time. Mother still alive. some loan docs. forged by daughter. some loan docs. mother actually signed.

forged by daughter: loan app. signature, escrow instruction signature

actually signed by mother: promissary note, lack of diligence ?:

- loan rep. sent loan app. to daughter to obtain mothers signature

- daughter forged mothers signature and returned loan app. - signature on loan app.clearly does not match signature on promissary note.

- signature on escrow instructions clearly does not match signature on promissary note.

- S&L did not discover that borrower phone# and address was actually phone# and address of borrowers daughter

- loan app false info.: mother has $1700/mo income from Social Security,property would be owner occupied,loan reason: debt consolidation, pay off rental property, home improvement... no rental property paid off, $83,000 loan on rental property listed in 'Accts. to be paid at closing' however was not paid

-appears S& L required quitclaim from Mother and Daughter to Mother during loan process

any way to seek relief ?

thank you!


Asked on 4/09/06, 3:01 pm

1 Answer from Attorneys
JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: Savings & Loan lack of diligence ? Relief ?

Perhaps. But what relief are you seeking? That is going to dictate how to proceed. The biggest hurdle mother faces is that she signed the promissory note. Let's play devil's advocate here: Why would she sign a promissory note if she didn't want to take out the loan? Regardless of the application shenanigans, and the forged sigs on the escrow docs, mother did sign the promissory note itself. She will have a tough time trying to back out of it.

Is mother seeking to rescind? Probably not likely, as she willingly signed the promissory note.

Is mother seeking recovery of proceeds that went to other persons (via escrow)? In other words, did daughter or anyone else benefit as a result of daughter's forgeries and fraud? If so, then perhaps a lawsuit against daughter will be in order.

Is mother upset with the lender? No need to be, really. After all, she signed the promissory note. Presumably, she was aware of the terms of the note. And if she was not, the law is of no help for her, because the law presumes signatories have read and understand the documents that they sign.

I will need additional facts to fully analyze your situation. You should find yourself a decent civil litigator to provide advice to mother. We are real property litigators with extensive experience dealing with litigating issues arising out of fraudulent transactions. If your mother needs to consult with us, please call or email.

Good luck.

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Answered on 4/09/06, 3:13 pm


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