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At settlement insufficient funds were held to pay the stamp duty which delayed registration of transfer of the property into the borrower's name and the Insured lender's mortgage.
While attempts to obtain the shortfall of the stamp duty from the borrower were being made, the borrower sold the property back to the vendor, who was known to her, without the knowledge of the Insured lender. The vendor then proceeded to sell the property to another party, resulting in the Insured's loan being unsecured. It was claimed by the borrower's brother that the property was sold back to the vendor due to the ill health of the borrower. The borrower repaid part of the loan through other means, however there appeared to be fraudulent activity in the way the property was sold back to the vendor.
Action:
We retained lawyers and a private investigator to investigate this issue. The conclusion was that the "borrower" had never existed and a fraud had been perpetrated by the person claiming to be the borrower's brother.
When confronted with this information, the "borrower's brother" advised that he would repay the loan on behalf of his sister who was still allegedly unwell. During negotiations with the "borrower's brother", it was claimed that the "sister" had died. Eventually, a settlement was made and we ensured that the lender suffered no loss, meeting the lender's legal fees in full.
Identity Fraud
Incapacity Of The Borrower
The examples below are of actual title insurance coverages issued by First American in Asia
Missing Title Deeds
Legal Description Discrepancies
Lack Of Priority Of Mortgage
No Occupancy Permit
No Right Of Access
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