The borrower challenged the validity of the Insured lo-doc mortgage and a default judgment for possession obtained by the lender over 2 properties mortgaged by the borrower, on the basis that the borrower lacked the requisite capacity to enter into the transaction. The borrower was then institutionalised and his affairs managed by the Protective Commissioner.
Action:
We negotiated an agreement with the Protective Commissioner and the borrower's estranged wife, on behalf of the lender, which secured one of the borower's properties for the lender to exercise a power of sale with the other property being retained by the borrower's estate to provide a place for the borrower to live in the future.
Our policy met all legal expenses, the shortfall left when the sale proceeds did not repay the lender in full and ensured that the lender did not suffer a loss.
The examples below are of actual title insurance coverages issued by First American in Asia
