Real Fraud Story
Sarah co-owned a house with her parents. One day, she received a foreclosure notice from a lender claiming he had a mortgage on the property, which had gone into default. The lender even advised Sarah that if the mortgage amount was not paid, he would sell the house. Sarah was in disbelief and approached Chicago Title Insurance Company Canada, who insured the title to her house.
An investigation into the case revealed that neither Sarah nor her parents signed the mortgage. Steve, a family friend, conspired with a dishonest mortgage broker to forge their signatures and issue the mortgage. Steve managed to steal the parents’ identification and created a fake ID for Sarah to authenticate the transaction.
Chicago Title retained counsel on behalf of Sarah to have the mortgage discharged from the property and clear the title. We incurred an expense of around $35,000 in legal fees.
Please note that coverage for a matter is based on the specific facts of the claim and pursuant to the terms and conditions of the particular policy issued for the transaction.