Legal Question in Real Estate Law in California

Re: Mortgage Broker Forging Signatures

It would depend on what documents were "forged," whether the information contained in those documents is true, whether the document has been notarized, and whether you have suffered any damage as a result of the forgery.

If your loan documents were forged, and contain false information, your lender could claim that you have engaged in bank fraud, and demand that you pay the loan in full. On the other hand, if an escrow instruction was "forged," which simply contained instuctions you were aware of, and you have suffered no damage, then there really is little to worry about.

It would also depend on whether you used a loan broker. We have dealt with several loan brokers in the past who have actully procured multiple loans (which were unauthorized) using forged documents. At the very least, you should talk to your escrow officer and investigate who "forged" the documents, why, and make sure that you have copies of all of your documents. You may also want to take all of the documents you do have to an attorney whose practice emphasizes real property transactions.

If you have any further questions, please feel free to e-mail me at [email protected].

Re: Mortgage Broker Forging Signatures

An intent to defraud is usually required for the signing of the name of another to be fraud. See, e.g., Penal Code section 470(a) and (b) at your local law library.

It is commonplace in the business world for people to sign someone else's name to documents. However, they do it with express or implied authority. Also, they do it innocently, with no intention to defraud. Look at the facsimile signatures on your paycheck and the money in your billfold for one example.

If the signatures were applied by someone who was not acting on your behalf and you suffered some economic harm as a result, you might be able to establish fraud and obtain a civil remedy or interest the DA in prosecuting. In that case, see an attorney and/or talk to the white-collar crimes unit of your local sheriff's or police department.