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There probably is more to this question than is being related -however- based strictly on the wording of the question - no. If the person whose name is forged on the documents was not a party to the agreement - they do not have to honor the forged document.

As suggested, there is more to this question - the document concerned was for a secured loan taken out on a property jointly mortgaged with a partner who subsequently took out a secured loan by forging the signature of the 2nd party. The property is a former council house purchased under the right to buy scheme, and to complicate things further, the property is registered at the Land Registry in the name of the forger. However the party concerned, having no source of income, and being the joint mortgagee needed a signature that could justify a loan and proceeded to forge the necessary signature. As you can imagine, this has created a situation whereby the 2nd party is in dispute with the lender who is attempting to repossess the property as no payments have been made since the discovery of the forgery. It is my contention that as this loan was made as a result of a forged document, regardless of whose name may be the Land Registry records, it is nevertheless an invalid transaction. Although the company concerned maybe has a right to pursue this debt, they must however take responsibility for failing to carry out proper checks (the documents were obvious forgeries) and seek redress by other means and have no right to institute repossession proceedings. There`s more ????
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