Decatur, Georgia – In a quiet suburb of Atlanta we insured a first mortgage against this renter-occupied home for $89,040. The borrowers were Mark and Sam, partners in a local shoe store, and loan proceeds were deposited into their business bank account. Soon payments stopped and the lender threatened foreclosure.
	Hidden Risk: A deed in this home's chain of title was claimed to be forged.

It was then the lender was contacted by an attorney representing Mark's mother and father. The parents claim to be true owners of the property and, they say, a recorded deed vesting title in Mark and Sam, which appears to have been signed by the parents, is a forgery.

Mom and Dad filed a lawsuit to enjoin foreclosure. Meanwhile it was decided Mark had a substance abuse problem and he entered rehab.

Between Mark and Sam the loan proceeds have disappeared.

Mark has admitted forging signatures to the suspect deed. Sam denies knowledge of any forgery and claims Mark embezzled money from the shoe store.

First American paid $91,640 to purchase the insured mortgage. After pleading guilty to criminal charges Mark was sentenced to fifteen years probation and ordered to pay restitution of $47,000.

After (or if) restitution is paid, First American's losses will be more than $50,000, plus legal expenses of $9,200.

Forged or falsified documents within the public records can be hard to detect. Attorney opinion letters uniformly disclaim responsibility for forged documents, and other forms of title assurance generally provide no coverage against this risk.