Legal Question in Real Estate Law in California

Re: Forged deed of trust

Forged documents are always void.

The devil is in the proof that they are forged. If the documents are regular on their face, the burden of proof falls on the party that disputes their authenticity. Until shown to be otherwise, the deed of trust is entitled to be "presumed innocent," to borrow a concept from criminal law.

I think a big issue here is who received the proceeds of the refinancing loan. If YOU got the money, you have a weak position even if there were some irregularities in the application process, such as the broker or lender taking liberties with the authority you gave them.

On the other hand, if someone else received the benefits from a "loan" where you are responsible for the payments, or where your property is given as collateral, this is almost certainly an instance of fraud and not only can you have the documents voided, you can probably recover damages including punitive damages and attorney fees.

Your situation requires immediate, knowledgable and aggressive response. Foreclosures where the property is purchased by a bona-fide purchaser for fair value without notice of the prior fraud are VERY difficult to un-do after they take place, so the defrauded party must promptly sue and file and record the appropriate notice of pendency of action to give notice to possible bona-fide purchasers at the foreclosure.

Please feel free to contact me with details as to what happened for a more specific analysis of your legal options.

Re: Forged deed of trust

You need to get yourself to an experienced real estate attorney ASAP, and take any and all documentation you have with you. You say the lender has been "notified", but do not rely upon that--you need to file an affadavit of identity theft and make sure it is transmitted to someone at the offices of the lender who is in a position of authority. No one will know the deed of trust is forged, unless you establish that it is forged, and if no payments are not made on the loan the lender can not only foreclose but if he determines you were involved in the forgery, he can seek damages above and beyond the amount of the loan.

Re: Forged deed of trust

I agree with Mr. Whipple. You need to move fast. I suggest obtaining a copy of the forged deed of trust and going to a lawyer immediately.

A good lawyer will immediately demand a copy of the notary journal for any alleged "notary" on the forged deed of trust. There should be a thumbprint in the notarial journal, or you have a problem with a crooked notary.

You need to move on this now. As Mr. Whipple stated, if someone else got the money and you got the security, the bank will foreclose on your property and it will be hard to set aside later.

Very truly yours,