Title fraud and insurance claim

[Guru Srini]

Hello,

Can you please advice, how to proceed on this title insurance claim

Here is the scenario

I lent a money to borrower X against a 50% LTV property through a mortgage broker in October 2009. I have 100% title insurance coverage of my money. The loan had 3 months prepayment

In Dec 2009, escrow officer sent me an email stating that there seems to be some loan fraud happened in this case. Mortgage broker recommended that wait until 3 months prepayment is over and see whether borrower is paying or not. After numerous mails from my servicing company to borrower X, borrower X didn't reply or pay.

I filed for title insurance claim stating that loan fraud is happened in March 2010. Title insurance company investigated the claim and denied the claim stating that no loan fraud is happened and asked me to do foreclosure in Oct2010. I have started the FC with filing NOD first in Dec 2010.

An attorney representing real owner of the property sent me mail that there was a judgment in favor of his client in Nov 2009 that the property is owned by his client. If I don't rescind the NOD, I will be get sued. I have sent the letter to title insurance claim. Title insurance asked me to rescind the NOD and investigate further in Jan2011. I have rescinded the NOD.

Now Title insurance sent me an email stating that I need to do "Examination Under Oath" (EUO). I'm fine to do EUO. Now, my questions are

- Do I need to prepare anything for this?
- Any tips and tricks which I should be aware of?
- How long this will be?
- Do I need to hire a lawyer? if so do you have any recommendation in bay area?

Thanks for the help!