Sally Smith had lived in her home for over 10 years when she started getting calls from ABC Bank saying that she was not paying her mortgage. They were threatening to take her home if she didn’t make her mortgage payments. Sally was confused. She had a mortgage from when she purchased, but her payments were coming out of her account. She thought, this must be prank calls and decided to ignore them.
After several more pestering calls, Sally thought she should look into this. To her horror, she discovered a thief had stolen her identity and put a $320,000.00 mortgage with ABC Bank on her home. The thief had made payments for the first year and then stopped. Even worse, ABC Bank had now served Sally with a foreclosure lawsuit and were trying to take her home.
Luckily for Sally, her lawyer had recommended title insurance and she obtained an owner’s policy at the time she purchased her house. Sally contacted her lawyer, who made a claim to Chicago Title. After investigating, to confirm Sally’s allegations, Chicago Title paid over $100,000.00 in legal fees and $50,000.00 in other damages to dismiss the foreclosure lawsuit and remove the ABC Bank’s mortgage from her home. Fortunately ABC Bank had a title insurance policy as well, which protected them from the risk their mortgage was invalid. They were also able to recover their losses.
DISCLAIMER: The name and other identifying details have been changed to protect the identity of the claimant. For specific details regarding policy coverages, exceptions, and exclusions, please contact us for copies of the complete title insurance policy.