Fake Powers of Attorney (POA) have been linked to many fraud claims. Be on guard if your client asks you to close using a Power of Attorney. Here is the story of Julian, a private lender, who was a victim of a similar fraud.
Susan* made her husband, Robert*, a Donor in a Power of Attorney (POA) when they decided to purchase a house. A few years later, the relationship ended and Robert moved out. He used the old Power of Attorney which was expired and altered it to make it appear valid in order to get a mortgage on his wife’s house. Robert approached Julian*, a private lender, to get the mortgage with this fake Power of Attorney and didn’t disclose the fact that he was not living with his wife anymore. Julian believed him and issued the mortgage without consulting with Susan. When he learned that the mortgage was issued without Susan’s knowledge or consent, he knew he had been a victim of fraud, so he contacted Chicago Title. While the case is still under litigation, Julian is happy he has a Lender’s policy with Chicago Title to cover his losses.
At Chicago Title we understand that your house is not just a house; it is your most important asset; it is where you build your dreams and create priceless memories, and it needs to be protected. For a competitive, one-time premium, an owner’s title insurance policy protects the purchaser or the existing owner from fraud and title defects.
* Names and identifying details have been changed to protect the identity of the involved parties
