Legal Question in Real Estate Law in California

1. First off, deeds are not enforceable or unenforceable. They are either valid, void or voidable, each with significantly different legal effects. Second, deeds are not "taken out," and I have no idea what you mean by that phrase. Third, courts don't "affirm" ownership. They quiet title in one or the other competing claimants to ownership. There are literally hundreds of cases in which a plaintiff had title quieted in their favor. Here's one: Fallon v. Triangle Management Services, Inc. (1985) 169 Cal.App.3d 1103 , 215 Cal.Rptr. 748 Of course quiet title cases being very fact specific, this case may have no application whatsoever to your case. Since you have not provided ANY facts about why the deed was invalid and whether it has been judged void or voidable, or is still in litigation, there is no way to point you to a more specifically applicable case.

2. You will never find a case like what you are asking for. Nothing a lender sees or finds or knows AFTER closing will have any effect whatsoever on the validity of the mortgage. If the underlying deed to the borrower is void, the mortgage or deed of trust is void with it, regardless of whether the lender knew it was void at any time. If the underlying deed to the borrower is voidable, then the lender's knowledge or reason to know of the defective title BEFORE close of the loan is extremely relevant, but if the lender was ignorant of the defective title at the time the loan was made, information they acquire after closing has no effect on the validity and enforceability of the mortgage or deed of trust.

Someone who isn't the "true owner" of property (e.g., who doesn't own it in fee simple absolute) may still validly execute and deliver a deed -- generally, it would be a quitclaim deed -- in any number of circumstances.

Such deeds often have the beneficial effect of making it 100% clear that the quitclaiming party has no interest in the property after the delivery of the deed.

A piece of paper purporting to be a deed, executed by someone with no claim or interest in the property whatsoever, is a complete, total legal nullity, and conveys nothing. Here is a quotation from a LawGuru response I wrote in May, 2011:

"It is true that an absolutely forged deed transfers nothing, not even to a bona fide purchaser for value without notice of the forged nature of the supposed deed. However, the principle should be applied with caution, and an affected party should get competent legal advice, because not every type and kind of falsith or misstatement that might appear on a deed will render it totally ineffective, i.e., void ab initio.

"There are many cases on void, voidable, and valid though inaccurate or defective deeds and similar instruments, including Erickson v. Bohne (1955) 130 Cal.App.2d 553; In re Marriage of Jovel (1996) 49 Cal.App.4th 575; and Vaca Valley & Clear Lake Railroad Co. v. Mansfield (1890) 84 Cal. 560.

"Also note that recording a void deed does not make it valid."

If you need more assistance, please feel free to contact me directly. I have some experience in property title-dispute cases involving false or fraudulent deeds by non-owners.