22 years ago, my housekeeper's husband forged her name on a Deed of
Trust to secure an Small Business Association loan. The deed was not
witnessed or notarized.  A copy was recorded noting that"the copy had
not been compared to the original."  Her husband died shortly
thereafter.  She has
lived at the same address for well over 22 years and never knew of the
existence of this Deed of Trust. She only recently learned of it when
trying to refinance her current mortgage.  Having discovered it, she
contacted the SBA and they say she owes the loan plus 22 years of
interest. This seems wrong. It seems that some sort of notice should
have been given over the past 22 years by the SBA.   The house is in
Los
Angeles, CA so I really only can use California case/code law and or
appellate rulings in this district.

Just a free comment:
The deed of trust required her name, apparently as co-owner of the
property, but the SBA loan was made and signed by her husband.  (And
perhaps he also forged her signature on the loan agreement.)  It seems
unlikely that such a loan would have been a "bullet" with no repayment
schedule or regular interest payments.  The Statute of Limitation on
written contracts in California is 4 years:

http://www.fair-debt-collection.com/SOL-by-State.html#5

http://www.legalzoom.com/law_library/smallclaims/statuteoflimitations.html

http://www.outtadebt.com/statute-of-limitations.html

Normally this would mean that the SBA had to demonstrate that it had
started and pursued collection of the loan within four years of its
going into default under the terms of the loan agreement.  Since your
housekeeper is apparently still living at the same address, it seems
unlikely that such action would have escaped her notice.

But how to force the SBA to release the Deed?

Good luck, Myoarin

I thought a legal-oriented Researcher would like to answer this.

Please note the disclaimer below:  this is not legal or professional advice.

Sooner or later, a lawyer will probably have to get involved.  I would
suggest that your housekeeper speak to one immediately and have him or
her accompany her to the SBA.  She should make an appointment, so that
the office cannot hide by saying it did not know what the matter was
and didn't have any records on hand.  The lawyer will add weight on
her side of the table and also be able to counter any specious
arguments, as well as being a witness.
The SBA is going to have to present the original loan document,
evidence that the loan was actually made, and evidence of its
collection efforts.
Perhaps the loan never was made, possibly another person was also a
borrower and it has been settled (or not).  Does she now have a copy
of the deed?  Does it include details about the loan?

Good luck, Myoarin