Can the seller pay closing costs? A real estate attorney weighs in
Yuriy Moshes October 13, 2026 11:05 am
Can the seller pay closing costs? A real estate attorney weighs in In real estate,
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A forged signature on a loan modification is fraud — the agreement is legally unenforceable. However, the forgery must be proven. If you suspect your signature was forged on a mortgage document, acting quickly and retaining an experienced forgery attorney is critical to protecting your home and finances.
AUTHOR YURIY MOSHES, ESQ
Founding Member of Moshes Law, P.C.
During his years of practice, Yuriy has concentrated in litigation and real estate transactions as his areas of expertise
A forged signature can put your home, finances, and credit at risk. Learn your legal options and work with an experienced attorney to challenge fraudulent mortgage documents and protect your interests.
A loan modification is a change made to the terms of an existing loan by a lender — typically a bank or mortgage company. It may involve:
Lenders offer modifications to help borrowers who are experiencing financial hardship avoid foreclosure. To qualify, a homeowner generally must demonstrate financial hardship, inability to maintain current mortgage payments, and capacity to honor a restructured payment plan.
If you are considering a loan modification, our loan modification attorneys can guide you through the process.
Generally, no. For any mortgage document — including a loan modification — to be legally valid, both parties must reach a “meeting of the minds.” This legal concept means both parties must genuinely agree to the document’s terms.
A forged signature means no real agreement ever took place. As a result:
While a forged loan modification cannot legally bind you, you will still be treated as if you agreed to it unless you can prove the forgery. The burden of proof is on you — and that is where legal representation becomes essential.
Forgeries on loan documents are more common than most people realize, and the perpetrator is often someone close to the victim — an ex-spouse, a family member, or a close friend with access to personal financial information.
Courts have addressed forged loan modification signatures in several important cases. These examples illustrate the legal landscape and why obtaining proper legal counsel matters.
Jerry Wayne Neighbors disputed a loan modification agreement with Regions Bank, claiming his signature had been forged by an imposter. Neighbors filed suit against the bank for negligently allowing the forgery to occur. The bank argued that since Neighbors had signed the original loan application — which contained an arbitration clause — the forgery dispute still had to be resolved through arbitration. The Supreme Court of Alabama agreed: even though the modification itself may have been fraudulent, the arbitration agreement from the original application still applied.
After divorcing, an Ohio man forged his ex-wife’s signature on a forbearance agreement with Wells Fargo in order to make three on-time payments and keep the home. When the ex-wife discovered the forgery, the man was prosecuted. The prosecution’s handwriting expert testified to the forgery, and the jury found the defendant guilty. The case highlights that even seemingly minor forgeries — done to keep payments on track — carry serious criminal consequences.
Both cases demonstrate that while proven forgeries render loan modifications unenforceable, the burden falls on the victim to prove them. Allegations alone are not enough.
Yes — forging a signature is a criminal offense throughout the United States. In New York, forgery is governed by Penal Code Sections 170.00 through 170.40. Under these statutes, any person who makes, completes, or alters a written instrument with the intent to defraud another person commits forgery.
New York law recognizes three degrees of forgery, escalating in severity based on the nature of the document involved:
Occurs when a person falsely makes, completes, or alters any written instrument with intent to defraud, deceive, or injure another party.
Involves specific, higher-stakes documents, including:
A loan modification agreement — which affects legal rights and financial obligations — typically falls within second-degree forgery.
The most serious level, involving government-issued currency, stamps, securities, bonds, or stock instruments.
Penalties vary by degree. Here is a clear breakdown:
1. First-Degree Forgery — Most Severe — Up to 15 years in prison and fines of up to $5,000 or double the defendant’s gain from the crime.
2. Second-Degree Forgery — Serious — Up to 7 years in prison and fines of up to $5,000 or double the defendant’s gain from the crime.
3. Third-Degree Forgery — Least Severe — Up to 1 year in prison and fines of up to $1,000.
Given that a loan modification is a legal and financial instrument, the forger typically faces second-degree forgery charges — a Class D felony — which carries up to seven years in prison.
Yes. Beyond pressing criminal charges, victims of signature forgery may also pursue a civil lawsuit against the forger. This is particularly important when the forgery has caused you direct financial harm or emotional distress.
You may be entitled to compensation for:
A forgery attorney can help you assess both criminal and civil remedies and determine the best course of action for your specific circumstances. Learn more about wrongful foreclosure and your legal rights.
If you believe your signature has been forged on a loan modification or any mortgage document, take these steps immediately:
1. Do not ignore the document: Delaying action can limit your legal options and allow the modification to become harder to contest. The longer you wait, the greater the potential damage to your finances and credit.
2. Contact a forgery attorney right away: An attorney experienced in forgery and real estate law will evaluate your case, identify the evidence needed, and advise you on your options.
3. Notify your lender in writing: Report the suspected forgery to your bank or mortgage servicer. Your lender may require a written statement and signature comparison before investigating. Do not do this without legal guidance — lenders are not incentivized to admit they allowed a forgery to occur.
4. File a police report. Forgery is a crime: Your attorney can assist you in reporting the forgery to law enforcement and the state’s attorney to pursue criminal charges.
5. Gather all available evidence: Preserve original documents, written communications, account statements, and any other records relevant to the modification.
If you are also facing foreclosure as a result of a forged modification, our foreclosure defense attorneys can provide additional assistance.
Proving a forged signature is challenging but essential — a modification will remain enforceable until the forgery is established. Common methods used to prove forgery include:
A forged signature on a loan modification is a serious legal issue that can impact your mortgage, credit, and financial stability. Although such agreements are generally not enforceable, they must be formally challenged and proven as forgery before any action is taken.
If you suspect fraud, acting quickly is important to protect your rights and prevent further financial damage. Speaking with an experienced attorney can help you address the issue effectively and take the right legal steps.
Contact a forgery attorney immediately. An experienced attorney will analyze your situation, help gather evidence, and advise you on both criminal and civil remedies. They can also assist you in notifying the appropriate authorities to pursue criminal charges against the forger.
It depends on the document involved. In New York, forging a loan modification or mortgage document typically constitutes second-degree forgery — a Class D felony punishable by up to seven years in prison. First-degree forgery (involving government securities or currency) is a Class C felony with penalties up to 15 years.
Under New York law, penalties range from up to one year in jail for third-degree (misdemeanor) forgery, up to seven years for second-degree (Class D felony), and up to 15 years for first-degree (Class C felony). Fines and civil liability may apply in addition to imprisonment.
The contract is generally unenforceable against you — but only if the forgery is proven. Until then, you may be held to its terms. The forger may face both criminal prosecution and a civil lawsuit from you for any resulting damages.
Yes. In addition to supporting criminal charges, you can pursue a civil lawsuit for financial losses, credit damage, and emotional distress caused by the forgery. A forgery attorney can advise you on whether a civil claim is appropriate in your situation.
In New York, the maximum sentence is 15 years for first-degree forgery, 7 years for second-degree forgery, and 1 year for third-degree forgery. Actual sentences vary based on the specifics of the case, prior criminal history, and other factors.
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