Claims Chronicles - Dear John

Dear John Print this Page Dunlap, IL--Returning home from work one day John found this note tacked to the door: "John, sold the place. I filed for divorce. The marriage is over. You have 30 days to get out! Good Bye, Jan." He didn't know where she'd gone, and after a few weeks he forgot about the note. Then one day while napping on the couch John was awakened by voices. There in his living room were Mr. & Mrs. Schaer, who claimed to be new owners of his home. Self Help--She wanted a divorce, without the hassle.

When John objected to them moving in, the Schaers retreated to make a claim under their title policy. First American hired an attorney to represent them.

It turned out that Jan had sold the property for $30,000, and forged John's signature to a deed. Then she moved to a mobilehome park in nearby Peoria.

Since the Schaers' deed was hopelessly defective, First American paid them the policy amount of $30,000. Then the Company made claims for reimbursement against Jan and the hapless notary on the forged signature. This turned out to be an expensive quest.

Ultimately, John agreed to pay for Jan's half interest in the property by giving a note and mortgage to First American (as successor to Jan). Then John filed a chapter 13 bankruptcy and things got complicated again.

Although the Company recovered most of the $30,000 it had paid, unrecoverable legal expenses totaled more than $50,000.

MORAL: After a split-up, exes sometimes leave title to property that was once jointly owned now open to question. Of course, Janis overdid it--and she faced criminal charges. Title insurance is great protection against becoming entangled in the personal problems of others.