assignment of mortgage illinois

JavaScript seems to be disabled in your browser. You must have JavaScript enabled in your browser to utilize the functionality of this website.

• Definitions
• Questions & Answers
• Articles/Guides
• Legal Topics
• Ask a Question
• Find Attorney
• Legal Forms
• Legal Guides
• Locate Lawyers
• Legal Research
• Submit Article
• Attorney Directory
• Privacy Policy

• USLegal Home
• Real Estate
• Mortgage Satisfaction
• Illinois Assignment and Satisfaction of Mortgage Law

Find a legal form in minutes

Browse US Legal Forms’ largest database of 85k state and industry-specific legal forms.

• Connecticut
• District of Columbia
• Massachusetts
• Mississippi
• New Hampshire
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• West Virginia
• Last Will and Testament
• Power of Attorney
• Promissory Note
• LLC Operating Agreement
• Living Will
• Rental Lease Agreement
• Non-Disclosure Agreement

Real Property – Mortgage Satisfaction – Illinois

Related illinois legal forms.

• Assignment of Mortgage by Corporate Mortgage…
• Assignment of Mortgage by Individual Mortgage…
• Partial Release of Property From Mortgage by…
• Partial Release of Property From Mortgage for…
• Satisfaction, Release or Cancellation of…

Assignments Generally: Lenders, or holders of mortgages or deeds of trust, often assign mortgages or deeds of trust to other lenders, or third parties.  When this is done the assignee (person who received the assignment) steps into the place of the original lender or assignor.  To effectuate an assignment, the general rules is that the assignment must be in proper written format and recorded to provide notice of the assignment.

Satisfactions Generally: Once a mortgage or deed of trust is paid, the holder of the mortgage is required to satisfy the mortgage or deed of trust of record to show that the mortgage or deed of trust is no longer a lien on the property. The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction.  If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien. Depending on your state, a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance.  Some states still recognize marginal satisfaction but this is slowly being phased out.  A marginal satisfaction is where the holder of the mortgage physically goes to the recording office and enters a satisfaction on the face of the the recorded mortgage, which is attested by the clerk.

Illinois Law

Execution of Assignment or Satisfaction: Must be signed by mortgagee.

Assignment: An assignment must be in writing and recorded.

Demand to Satisfy: Release required within 60 days of payoff. No request by the mortgagor is required.

Recording Satisfaction: Upon full payoff of the mortgage, the mortgagee shall provide a written release to the recorder or registrar for recording or registering. The recorder, or registrar, upon receipt of such a release and the payment of  the recording or registration fee, shall record or register the release.

Marginal Satisfaction: Not allowed. Satisfaction must be by separate instrument.

Penalty: If any mortgagee, knowing the mortgage to be paid, shall  not, within one month after the payment of the debt, record the satisfaction in the official records, he  shall be liable for and pay to the party aggrieved the sum of $200 which may be recovered by the party aggrieved in a civil action, plus reasonable attorney’s fees.

Acknowledgment: An assignment or satisfaction must contain a proper Illinois acknowledgment, or other acknowledgment approved by Statute.

Illinois Statutes

Sec. 2.  Every mortgagee of real property, his assignee of  record , or other legal representative, having received full satisfaction and payment of all such sum or sums of money as are really due to  him  from the  mortgagor, and every trustee, or his successor in trust, in a deed of trust in the nature of a mortgage, the notes, bonds or other indebtedness secured thereby having been fully paid before September 7, 1973, shall, at the request of the mortgagor, or grantor in a deed  of trust in the nature of a mortgage, his heirs, legal epresentatives or assigns, in case such mortgage or  trust deed has been recorded or registered,  make,  execute and deliver to the mortgagor or grantor in a deed of trust in the nature  of a mortgage, his heirs, legal representatives or assigns, an instrument in writing executed in conformity with the provisions of this section releasing such mortgage or deed of trust in the nature of a mortgage, which  release  shall  be entitled to be recorded or registered and the recorder or registrar upon receipt  of such a release and the payment of the recording fee therefor shall record or register the same. Mortgages of real property and deeds of trust in the nature  of  a mortgage shall be released of record only in the manner provided herein; however,  nothing  contained  in this Act shall in any manner affect the validity of any release of a mortgage or deed of  trust  made  prior  to January 1, 1952 on the margin of the record. Every  mortgagee  of real property, his assignee of record, or other legal representative, having received full satisfaction and  payment of all such sum or  sums  of  money  as  are  really due to him from the mortgagor, and every trustee, or his successor in trust, in  a  deed  of trust   in  the  nature of  a  mortgage, the  notes, bonds or other indebtedness secured thereby having been fully paid after September  7, 1973, shall make, execute and deliver to the mortgagor or grantor in a deed  of trust  in the nature of a mortgage, his heirs, legal representatives or assigns, an  instrument  in writing releasing such mortgage or deed of trust in the nature of a mortgage or  shall  deliver that release to the recorder or registrar for recording or registering. If the release is delivered to the mortgagor or grantor, it must have imprinted  on  its  face in bold letters at least 1/4 inch in height the following: “FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL BE FILED WITH THE RECORDER OR  THE  REGISTRAR  OF TITLES  IN  WHOSE  OFFICE  THE MORTGAGE  OR DEED OF TRUST WAS FILED”. The recorder, or registrar, upon receipt of such a release and the  payment of  the  recording  or registration fee, shall record or register the release.

Sec. 3. An instrument in writing which releases a mortgage or trust deed  of  real property may be acknowledged or proved in the same manner as deeds for the conveyance of land.

Sec. 4. If any mortgagee or trustee, in a deed in the nature of a mortgage, of  real property, or his executor or administrator, heirs or assigns, knowing the same to be paid, shall not,  within one month after the payment of the debt secured by such mortgage or trust deed, comply with the requirements of Section 2 of this Act,  he  shall,  for every such offense, be liable for and pay to the party aggrieved the sum of $200 which may be recovered by the party aggrieved in a civil  action, together with  reasonable attorney’s fees. In any such action, introduction of a loan payment book or receipt which indicates that the obligation has been  paid shall  be  sufficient  evidence  to raise a presumption that the obligation has been paid. Upon a finding for the party aggrieved, the court shall order the mortgagee or trustee, or his executor or administrator, heirs or assigns, to make, execute and deliver the release as provided in Section 2 of this Act. The successor in interest to the mortgagee or trustee in a deed in  the  nature  of a mortgage  shall not be liable for the penalty prescribed in this Section if he complies with the requirements of Section 2 of this Act within one month after succeeding to the interest.

• Assignment of Mortgage by Corporate Mortgage Holder
• Assignment of Mortgage by Individual Mortgage Holder
• Partial Release of Property From Mortgage by Individual Holder
• Partial Release of Property From Mortgage for Corporation
• Satisfaction, Release or Cancellation of Mortgage by Corporation

Inside Illinois Assignment and Satisfaction of Mortgage Law

Legal information.

• Personal Legal Forms
• Business Legal Forms
• FormsPass Subscriptions

For Consumer

• Information
• Attorney Assistance
• Partner with us

For Business

Customer support.

• 1-877-389-0141
• Terms of Service
• DMCA Policy
• Why USLegal?
• US Legal Forms
• airSlate workflows

• Bankruptcy Basics
• Chapter 11 Bankruptcy
• Chapter 13 Bankruptcy
• Chapter 7 Bankruptcy
• Debt Collectors and Consumer Rights
• Divorce and Bankruptcy
• Going to Court
• Property & Exemptions
• Student Loans
• Taxes and Bankruptcy
• Wage Garnishment

Understanding the Assignment of Mortgages: What You Need To Know

3 minute read • Upsolve is a nonprofit that helps you get out of debt with education and free debt relief tools, like our bankruptcy filing tool.  Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card.  Explore our free tool

A mortgage is a legally binding agreement between a home buyer and a lender that dictates a borrower's ability to pay off a loan. Every mortgage has an interest rate, a term length, and specific fees attached to it.

Written by Attorney Todd Carney .  Updated November 26, 2021

If you’re like most people who want to purchase a home, you’ll start by going to a bank or other lender to get a mortgage loan. Though you can choose your lender, after the mortgage loan is processed, your mortgage may be transferred to a different mortgage servicer . A transfer is also called an assignment of the mortgage. 

No matter what it’s called, this change of hands may also change who you’re supposed to make your house payments to and how the foreclosure process works if you default on your loan. That’s why if you’re a homeowner, it’s important to know how this process works. This article will provide an in-depth look at what an assignment of a mortgage entails and what impact it can have on homeownership.

Assignment of Mortgage – The Basics

When your original lender transfers your mortgage account and their interests in it to a new lender, that’s called an assignment of mortgage. To do this, your lender must use an assignment of mortgage document. This document ensures the loan is legally transferred to the new owner. It’s common for mortgage lenders to sell the mortgages to other lenders. Most lenders assign the mortgages they originate to other lenders or mortgage buyers.

Home Loan Documents

When you get a loan for a home or real estate, there will usually be two mortgage documents. The first is a mortgage or, less commonly, a deed of trust . The other is a promissory note. The mortgage or deed of trust will state that the mortgaged property provides the security interest for the loan. This basically means that your home is serving as collateral for the loan. It also gives the loan servicer the right to foreclose if you don’t make your monthly payments. The promissory note provides proof of the debt and your promise to pay it.

When a lender assigns your mortgage, your interests as the mortgagor are given to another mortgagee or servicer. Mortgages and deeds of trust are usually recorded in the county recorder’s office. This office also keeps a record of any transfers. When a mortgage is transferred so is the promissory note. The note will be endorsed or signed over to the loan’s new owner. In some situations, a note will be endorsed in blank, which turns it into a bearer instrument. This means whoever holds the note is the presumed owner.

Using MERS To Track Transfers

Banks have collectively established the Mortgage Electronic Registration System , Inc. (MERS), which keeps track of who owns which loans. With MERS, lenders are no longer required to do a separate assignment every time a loan is transferred. That’s because MERS keeps track of the transfers. It’s crucial for MERS to maintain a record of assignments and endorsements because these land records can tell who actually owns the debt and has a legal right to start the foreclosure process.

Upsolve Member Experiences

Assignment of Mortgage Requirements and Effects

The assignment of mortgage needs to include the following:

The original information regarding the mortgage. Alternatively, it can include the county recorder office’s identification numbers. 

The borrower’s name.

The mortgage loan’s original amount.

The date of the mortgage and when it was recorded.

Usually, there will also need to be a legal description of the real property the mortgage secures, but this is determined by state law and differs by state.

Notice Requirements

The original lender doesn’t need to provide notice to or get permission from the homeowner prior to assigning the mortgage. But the new lender (sometimes called the assignee) has to send the homeowner some form of notice of the loan assignment. The document will typically provide a disclaimer about who the new lender is, the lender’s contact information, and information about how to make your mortgage payment. You should make sure you have this information so you can avoid foreclosure.

Mortgage Terms

When an assignment occurs your loan is transferred, but the initial terms of your mortgage will stay the same. This means you’ll have the same interest rate, overall loan amount, monthly payment, and payment due date. If there are changes or adjustments to the escrow account, the new lender must do them under the terms of the original escrow agreement. The new lender can make some changes if you request them and the lender approves. For example, you may request your new lender to provide more payment methods.

Taxes and Insurance

If you have an escrow account and your mortgage is transferred, you may be worried about making sure your property taxes and homeowners insurance get paid. Though you can always verify the information, the original loan servicer is responsible for giving your local tax authority the new loan servicer’s address for tax billing purposes. The original lender is required to do this after the assignment is recorded. The servicer will also reach out to your property insurance company for this reason.  

If you’ve received notice that your mortgage loan has been assigned, it’s a good idea to reach out to your loan servicer and verify this information. Verifying that all your mortgage information is correct, that you know who to contact if you have questions about your mortgage, and that you know how to make payments to the new servicer will help you avoid being scammed or making payments incorrectly.

Let's Summarize…

In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lender’s interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgage’s terms should remain the same. Your interest rate, loan amount, monthly payment, and payment schedule shouldn’t change. 

Your original lender isn’t required to notify you or get your permission prior to assigning your mortgage. But you should receive correspondence from the new lender after the assignment. It’s important to verify any change in assignment with your original loan servicer before you make your next mortgage payment, so you don’t fall victim to a scam.

Attorney Todd Carney

Attorney Todd Carney is a writer and graduate of Harvard Law School. While in law school, Todd worked in a clinic that helped pro-bono clients file for bankruptcy. Todd also studied several aspects of how the law impacts consumers. Todd has written over 40 articles for sites such... read more about Attorney Todd Carney

Continue reading and learning!

It's easy to get debt help

Choose one of the options below to get assistance with your debt:

Considering Bankruptcy?

Our free tool has helped 13,480+ families file bankruptcy on their own. We're funded by Harvard University and will never ask you for a credit card or payment.

Private Attorney

Get a free evaluation from an independent law firm.

Learning Center

Research and understand your options with our articles and guides.

Already an Upsolve user?

Bankruptcy Basics ➜

• What Is Bankruptcy?
• Every Type of Bankruptcy Explained
• How To File Bankruptcy for Free: A 10-Step Guide
• Can I File for Bankruptcy Online?

Chapter 7 Bankruptcy ➜

• What Are the Pros and Cons of Filing Chapter 7 Bankruptcy?
• What Is Chapter 7 Bankruptcy & When Should I File?
• Chapter 7 Means Test Calculator

Wage Garnishment ➜

• How To Stop Wage Garnishment Immediately

Property & Exemptions ➜

• What Are Bankruptcy Exemptions?
• Chapter 7 Bankruptcy: What Can You Keep?
• Yes! You Can Get a Mortgage After Bankruptcy
• How Long After Filing Bankruptcy Can I Buy a House?
• Can I Keep My Car If I File Chapter 7 Bankruptcy?
• Can I Buy a Car After Bankruptcy?
• Should I File for Bankruptcy for Credit Card Debt?
• How Much Debt Do I Need To File for Chapter 7 Bankruptcy?
• Can I Get Rid of my Medical Bills in Bankruptcy?

Student Loans ➜

• Can You File Bankruptcy on Student Loans?
• Can I Discharge Private Student Loans in Bankruptcy?
• Navigating Financial Aid During and After Bankruptcy: A Step-by-Step Guide
• Filing Bankruptcy to Deal With Your Student Loan Debt? Here Are 3 Things You Should Know!

Debt Collectors and Consumer Rights ➜

• 3 Steps To Take if a Debt Collector Sues You
• How To Deal With Debt Collectors (When You Can’t Pay)

Taxes and Bankruptcy ➜

• What Happens to My IRS Tax Debt if I File Bankruptcy?
• What Happens to Your Tax Refund in Bankruptcy

Chapter 13 Bankruptcy ➜

• Chapter 7 vs. Chapter 13 Bankruptcy: What’s the Difference?
• Why is Chapter 13 Probably A Bad Idea?
• How To File Chapter 13 Bankruptcy: A Step-by-Step Guide
• What Happens When a Chapter 13 Case Is Dismissed?

Going to Court ➜

• Do You Have to Go To Court to File Bankruptcy?
• Telephonic Hearings in Bankruptcy Court

Divorce and Bankruptcy ➜

• How to File Bankruptcy After a Divorce
• Chapter 13 and Divorce

Chapter 11 Bankruptcy ➜

• Chapter 7 vs. Chapter 11 Bankruptcy
• Reorganizing Your Debt? Chapter 11 or Chapter 13 Bankruptcy Can Help!

State Guides ➜

• Connecticut
• District Of Columbia
• Massachusetts
• Mississippi
• New Hampshire
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• West Virginia

Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families resolve their debt and fix their credit using free software tools. Our team includes debt experts and engineers who care deeply about making the financial system accessible to everyone. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations.

To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.

• Find a Lawyer
• Legal Topics
• Real Estate Law

Mortgage Assignment Laws and Definition

(This may not be the same place you live)

  What is a Mortgage Assignment?

A mortgage is a legal agreement. Under this agreement, a bank or other lending institution provides a loan to an individual seeking to finance a home purchase. The lender is referred to as a creditor. The person who finances the home owes money to the bank, and is referred to as the debtor.

To make money, the bank charges interest on the loan. To ensure the debtor pays the loan, the bank takes a security interest in what the loan is financing — the home itself. If the buyer fails to pay the loan, the bank can take the property through a foreclosure proceeding.

There are two main documents involved in a mortgage agreement. The document setting the financial terms and conditions of repayment is known as the mortgage note. The bank is the owner of the note. The note is secured by the mortgage. This means if the debtor does not make payment on the note, the bank may foreclose on the home. 

The document describing the mortgaged property is called the mortgage agreement. In the mortgage agreement, the debtor agrees to make payments under the note, and agrees that if payment is not made, the bank may institute foreclosure proceedings and take the home as collateral .

An assignment of a mortgage refers to an assignment of the note and assignment of the mortgage agreement. Both the note and the mortgage can be assigned. To assign the note and mortgage is to transfer ownership of the note and mortgage. Once the note is assigned, the person to whom it is assigned, the assignee, can collect payment under the note. 

Assignment of the mortgage agreement occurs when the mortgagee (the bank or lender) transfers its rights under the agreement to another party. That party is referred to as the assignee, and receives the right to enforce the agreement’s terms against the assignor, or debtor (also called the “mortgagor”). 

What are the Requirements for Executing a Mortgage Assignment?

What are some of the benefits and drawbacks of mortgage assignments, are there any defenses to mortgage assignments, do i need to hire an attorney for help with a mortgage assignment.

For a mortgage to be validly assigned, the assignment document (the document formally assigning ownership from one person to another) must contain:

• The current assignor name.
• The name of the assignee.
• The current borrower or borrowers’ names. 
• A description of the mortgage, including date of execution of the mortgage agreement, the amount of the loan that remains, and a reference to where the mortgage was initially recorded. A mortgage is recorded in the office of a county clerk, in an index, typically bearing a volume or page number. The reference to where the mortgage was recorded should include the date of recording, volume, page number, and county of recording.
• A description of the property. The description must be a legal description that unambiguously and completely describes the boundaries of the property.

There are several types of assignments of mortgage. These include a corrective assignment of mortgage, a corporate assignment of mortgage, and a mers assignment of mortgage. A corrective assignment corrects or amends a defect or mistake in the original assignment. A corporate assignment is an assignment of the mortgage from one corporation to another. 

A mers assignment involves the Mortgage Electronic Registration System (MERS). Mortgages often designate MERS as a nominee (agent for) the lender. When the lender assigns a mortgage to MERS, MERS does not actually receive ownership of the note or mortgage agreement. Instead, MERS tracks the mortgage as the mortgage is assigned from bank to bank. 

An advantage of a mortgage assignment is that the assignment permits buyers interested in purchasing a home, to do so without having to obtain a loan from a financial institution. The buyer, through an assignment from the current homeowner, assumes the rights and responsibilities under the mortgage. 

A disadvantage of a mortgage assignment is the consequences of failing to record it. Under most state laws, an entity seeking to institute foreclosure proceedings must record the assignment before it can do so. If a mortgage is not recorded, the judge will dismiss the foreclosure proceeding. 

Failure to observe mortgage assignment procedure can be used as a defense by a homeowner in a foreclosure proceeding. Before a bank can institute a foreclosure proceeding, the bank must record the assignment of the note. The bank must also be in actual possession of the note. 

If the bank fails to “produce the note,” that is, cannot demonstrate that the note was assigned to it, the bank cannot demonstrate it owns the note. Therefore, it lacks legal standing to commence a foreclosure proceeding.

If you need help with preparing an assignment of mortgage, you should contact a mortgage lawyer . An experienced mortgage lawyer near you can assist you with preparing and recording the document.

Need a Mortgage Lawyer in your Area?

• Connecticut
• Massachusetts
• Mississippi
• New Hampshire
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• West Virginia

Daniel Lebovic

LegalMatch Legal Writer

Original Author

Prior to joining LegalMatch, Daniel worked as a legal editor for a large HR Compliance firm, focusing on employer compliance in numerous areas of the law including workplace safety law, health care law, wage and hour law, and cybersecurity. Prior to that, Daniel served as a litigator for several small law firms, handling a diverse caseload that included cases in Real Estate Law (property ownership rights, residential landlord/tenant disputes, foreclosures), Employment Law (minimum wage and overtime claims, discrimination, workers’ compensation, labor-management relations), Construction Law, and Commercial Law (consumer protection law and contracts). Daniel holds a J.D. from the Emory University School of Law and a B.S. in Biological Sciences from Cornell University. He is admitted to practice law in the State of New York and before the State Bar of Georgia. Daniel is also admitted to practice before the United States Courts of Appeals for both the 2nd and 11th Circuits. You can learn more about Daniel by checking out his Linkedin profile and his personal page. Read More

Jose Rivera

Managing Editor

Preparing for Your Case

• What to Do to Have a Strong Mortgage Law Case
• Top 5 Types of Documents/Evidence to Gather for Your Mortgages Case

Related Articles

• Assumable Mortgages
• Loan Modification Laws
• Behind on Mortgage Payments Lawyers
• Home Improvement Loan Disputes
• Reverse Mortgages for Senior Citizens
• Mortgage Settlement Scams
• Short Sale Fraud Schemes
• Deed of Trust or a Mortgage, What's the Difference?
• Owner Carryback Mortgages
• Contract for Deed Lawyers Near Me
• Mortgage Subrogation
• Property Lien Waivers and Releases
• Different Types of Promissory Notes
• Repayment Schedules for Promissory Notes
• Ft. Lauderdale Condos and Special Approval Loans
• Special Approval Loans for Miami Condos
• Removing a Lien on Property
• Mortgage Loan Fraud
• Subprime Mortgage Lawsuits
• Property Flipping and Mortgage Loan Fraud
• Avoid Being a Victim of Mortgage Fraud
• Second Mortgage Lawyers
• Settlement Statement Lawyers
• Loan Approval / Commitment Lawyers
• Broker Agreement Lawyers
• Truth in Lending Disclosure Statement (TILA)
• Housing and Urban Development (HUD) Info Lawyers
• Good Faith Estimate Lawyers
• Mortgage Loan Documents

Discover the Trustworthy LegalMatch Advantage

• No fee to present your case
• Choose from lawyers in your area
• A 100% confidential service

How does LegalMatch work?

Law Library Disclaimer

16 people have successfully posted their cases

Assignment of Mortgage (Commercial Real Estate Loan) (IL) | Practical Law

Assignment of Mortgage (Commercial Real Estate Loan) (IL)

Practical law standard document w-000-1048  (approx. 21 pages).

• Assignment of Mortgage

Get free proposals from vetted lawyers in our marketplace.

Real Estate Terms Glossary

• Annual Percentage Rate
• Application Fee
• Appreciation
• Assessed Value
• Assumable Mortgage
• Assumption Fee
• Automated Underwriting
• Balance Sheet
• Balloon Mortgage
• Balloon Payment
• Before-tax Income
• Biweekly Payment Mortgage
• Bridge Loan
• Building Code

What is an Assignment of Mortgage?

In real estate, an assignment of mortgage is the transfer of a mortgage, or mortgage note , to another party which typically happens on the servicing side or lender side. This is commonly seen one when lender sells or transfers your mortgage to another lender. Lenders typically have the right to to sell mortgages and assign them to new parties, but don’t typically allow borrowers to do the same. When a borrower transfers their mortgage obligation to a new party, this is called an assumed mortgage.

Assignment of Mortgage Examples

Examples where you will find assignment of mortgages include:

• Example 1. A lender selling your mortgage to another lender for servicing.

Here’s Property Shark’s definition of assignment of mortgage .

Meet some of our Real Estate Lawyers

I have had the opportunity to experience the legal industry in a private setting and public sector, representing individuals, companies of all sizes, as well as the Government. As a strong leader, I take pride in continuously tackling new challenges and learning as much as possible, always finding answers and delivering results to my clients. I received my JD from Ave Maria School of Law in Naples, Florida and went on to pass the Uniform Bar Exam. I am currently licensed in Minnesota and North Carolina. I have experience in real estate law, estate planning, contract law, family law, criminal law, and more.

Stephen is a graduate of Nova Southeastern University - Shepard Broad College of Law, Stephen is licensed to practice in New Jersey and New York. He focuses on Morris, Passaic, and Bergen County, New Jersey, but services all of New Jersey. Before graduating, Stephen did an externship in Denver, Colorado with a focus on land use and development. Upon returning to New Jersey, he focused on Condominium and Home Owner Association. He also worked with Residential Real Estate Transactions and Estate Planning clients.

Admitted in NC in 1994. Law degrees from English and US law schools. Civil and criminal litigation experience as well as in house corporate attorney. Recipient of the highest civilian honors from 14 states, the Ellis Island Medal of Honor, a papally blessed knighthood and listed in NLJ as a recipient of on of their Pro Bono Attorney of the Year Award winners and the NLJ top 40 trial lawyers in the USA under 40 years old.

Hello! I have been working in commercial real estate for about 20 years. My experience is mainly in-house with real estate developers. I enjoy doing commercial real estate transactional work, including leasing, acquisitions and dispositions. I can also lead due diligence efforts for a potential purchase of a real estate asset and review and resolve title issues.

I'm a Chicago native and Kansas City transplant that has made regulatory compliance and civil administrative litigation for heavily regulated industries my niche for the past decade.

I am an attorney licensed in Indiana. I currently work primarily on civil litigation, landlord/tenant matters, and adoption cases. I have over 10 years of labor relations experience, including negotiations, labor contract enforcement, and arbitration experience. I also work with several non-profit groups representing LGBTQ+ groups and indigent clients in housing matters.

Find the best lawyer for your project

Real estate lawyers by city.

• Atlanta Real Estate Lawyers
• Austin Real Estate Lawyers
• Boston Real Estate Lawyers
• Chicago Real Estate Lawyers
• Dallas Real Estate Lawyers
• Denver Real Estate Lawyers
• Fort Lauderdale Real Estate Lawyers
• Houston Real Estate Lawyers
• Las Vegas Real Estate Lawyers
• Los Angeles Real Estate Lawyers
• Memphis Real Estate Lawyers
• Miami Real Estate Lawyers
• New York Real Estate Lawyers
• Oklahoma City Real Estate Lawyers
• Orlando Real Estate Lawyers
• Philadelphia Real Estate Lawyers
• Phoenix Real Estate Lawyers
• Richmond Real Estate Lawyers
• Salt Lake City Real Estate Lawyers
• San Antonio Real Estate Lawyers
• San Diego Real Estate Lawyers
• San Francisco Real Estate Lawyers
• Seattle Real Estate Lawyers
• Tampa Real Estate Lawyers

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Find lawyers and attorneys by city

Assignment of Leases and Rents (Pro-Lender) (IL)

This template assignment of leases and rents is used in an acquisition loan transaction by a borrower to assign to a lender the leases and occupancy agreements related to a mortgaged property in Illinois and all rents and sums payable thereunder. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This document is often broken out from the other loan documents so that it can be recorded to memorialize such an assignment although such an assignment may also be included in the provisions of the mortgage. This template is drafted from the lender's perspective but includes drafting tips for the borrower. For information on Illinois commercial financing transactions, see Commercial Real Estate Financing Transactions (IL), Commercial Real Estate Financing (IL), and Commercial Real Estate Acquisition Loan Resource Kit (IL).

Contact Land Trust Customer Service:

888-878-7856

Common Land Trust Closing Procedures for Lenders

• Verify that the documents have correct vesting. Note: Verify that the mortgage document does not include the name of the borrower.
• Verify that there is a signed Letter of Direction TO COMPLETE THIS FORM: SAVE the blank form to your computer BEFORE entering your information and then SAVE AGAIN after completing the form. from the appropriate parties and that it lists all the documents that the trustee is to execute.
• Must be signed by all beneficiaries
• Must be signed by the lender
• If a lender is lodging a Collateral Assignment for property located in Cook County, a Facsimile Assignment of Beneficial Interest TO COMPLETE THIS FORM: SAVE the blank form to your computer BEFORE entering your information and then SAVE AGAIN after completing the form. must be recorded as required by law.
• If the subject property is in the City of Chicago, you will need to obtain an Exempt Full Payment Certificate from the City of Chicago Department of Water before the document can be recorded.
• If the municipality where the property is located has an exempt transfer stamp ordinance, this stamp must be obtained prior to recording.

Key Concepts For Lenders

Beneficiary(ies) or Beneficial Owner(s): This refers to the property owner or owners and will typically be the borrowers.

Power of Direction: The holder of the power of direction is the person authorized to direct the trustee to execute documents, including loan documents.

Letter of Direction: This letter, signed by the holder of the power of direction, authorizes the trustee to execute the document(s) contained in the letter of direction.

Collateral Assignment of Beneficial Interest: This is the agreement that secures the lenders interest in the beneficial interest of the trust and puts a lien on the beneficial interest in the trust. It is the land trust equivalent of the mortgage. However, since it is not recorded, it does not show up as a lien on record title. Most significantly, it gives the lender a power of direction in the land trust and may allow foreclosure outside the court-monitored foreclosure process through a UCC Article 9 personal property foreclosure.

Release of Collateral Assignment of Beneficial Interest: This releases the collateral assignment, and it should be executed contemporaneously with the release of the mortgage.

Facsimile Assignment of Beneficial Interest for Collateral Purposes: One page document used to notify state, county and municipal bodies of a transfer of interest within the land trust. This only needs to be recorded if the subject property is in Cook County.

HELPFUL HINTS

• Property located in Cook County must have a recorded facsimile assignment when lodging an assignment or collateral assignment with the trust.
• Effective January 21, 2019, prior to recording, all Cook County property conveyance instruments must be accompanied by an electronically completed Cook County Real Estate Transfer Tax Declaration, a/k/a a MyDec which can be completed via the Illinois Department of Revenue’s MyDec Transfer Tax Portal. The requirement to use MyDec is already in effect for all property transfers in the City of Chicago, and is being extended to all property in Cook County, including “exempt” and “non-exempt” transfers. This requirement does not alter any local municipal requirements for transferring property, and must be fulfilled, even if the instrument is accompanied by a Grantor/Grantee Affidavit.
• Property located in the City of Chicago must obtain a water certificate in order to record a facsimile assignment or deed. Be sure to obtain any applicable transfer or exempt stamps from the municipality where the property is located.
• We can help you with recordings, obtaining water certificates, and completing MyDec.
• Your documents can be emailed to us at [email protected] for review before being formally submitted. Please include your contact information.

*The statements made on this web page and any page that follows within the Chicago Title website are not intended, and shall not be construed to expressly or impliedly issue or deliver any form of written guaranty, affirmation, indemnification, or certification of any fact, insurance coverage or conclusion of law.

• Find a Lawyer
• Ask a Lawyer
• Research the Law
• Law Schools
• Laws & Regs
• Newsletters
• Justia Connect
• Pro Membership
• Basic Membership
• Justia Lawyer Directory
• Platinum Placements
• Gold Placements
• Justia Elevate
• Justia Amplify
• PPC Management
• Google Business Profile
• Social Media
• Justia Onward Blog

2019 Illinois Compiled Statutes Chapter 765 - PROPERTY 765 ILCS 935/ - Mortgage Certificate of Release Act.

(765 ILCS 935/1) Sec. 1. Short Title. This Act may be cited as the Mortgage Certificate of Release Act. (Source: P.A. 92-765, eff. 8-6-02.)

(765 ILCS 935/5) Sec. 5. Definitions. As used in this Act: "Hold-harmless agreement" means a letter whereby a title insurance company, as defined in the Title Insurance Act, agrees to indemnify another title insurance company preparing to insure a present transaction that the indemnifying title insurance company has previously insured over without taking an exception to its title insurance policy for matters remaining of record, such as a previously paid but unreleased mortgage. A model form of a hold-harmless agreement is set forth in Section 70 of this Act. "Mortgage" means a mortgage or mortgage lien on an interest in one-to-four family residential real property in this State given to secure a loan in the original principal amount of less than $500,000. Trust deeds are not included. "Mortgagee" means either: (i) the grantee of a mortgage; or (ii) if a mortgage has been assigned of record, the last person to whom the mortgage has been assigned of record. "Mortgage servicer" means the last person to whom a mortgagor or the mortgagor's successor in interest has been instructed by a mortgagee to send payments on a loan secured by a mortgage. A person transmitting a payoff statement is the mortgage servicer for the mortgage described in the payoff statement. "Mortgagor" means the grantor of a mortgage. "Payoff statement" means a statement for the amount of the (i) unpaid balance of a loan secured by a mortgage, including principal, interest, and any other charges due under or secured by the mortgage; and (ii) interest on a per day basis for the unpaid balance. "Record" means to deliver the certificate of release for recording with the county recorder. "Title insurance agent" has the same meaning ascribed to it as in Section 3 of the Title Insurance Act. "Title insurance company" has the same meaning ascribed to it as in Section 3 of the Title Insurance Act. (Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)

(765 ILCS 935/10) Sec. 10. Mortgage presently being paid off. Receipt of payment pursuant to the lender's written payoff statement shall constitute authority to record a certificate of release. A certificate of release shall be delivered for recording to the recorder of each county in which the mortgage is recorded, together with the other documents from the new transaction, including a deed or new mortgage, or both by the title insurance company or its duly appointed agent. (Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)

(765 ILCS 935/10.1) Sec. 10.1. Previously paid mortgages. A title insurance company or its duly appointed title insurance agent may issue a mortgage certificate of release pursuant to this Act for a mortgage that appears in the chain of title prior to the mortgage presently being paid. The title insurance company must have proof of payment from its own prior files that it paid the mortgage or mortgages pursuant to a payoff statement. Where another title insurance company has paid off an unreleased mortgage pursuant to a payoff statement, the title insurance company or its duly appointed title insurance agent in the current transaction may rely upon the hold-harmless letter of that prior title insurance company to issue a mortgage certificate of release. This grant of authority is subject to the condition that the issuer of the mortgage certificate of release does not have notice that the lender opposes its release. A single mortgage certificate of release may include more than one mortgage, including both presently and previously paid mortgages. (Source: P.A. 93-428, eff. 12-31-03.)

(765 ILCS 935/15) Sec. 15. Certificate of release. An officer or duly appointed agent of a title insurance company may, on behalf of a mortgagor or a person who has acquired from a mortgagor title to all or part of the property described in the mortgage, execute a certificate of release that complies with the requirements of this Act and record the certificate of release with the recorder of each county in which the mortgage is recorded, provided that payment of the loan secured by the mortgage was made in accordance with a written payoff statement furnished by the mortgagee or the mortgage servicer. The title insurance company or its duly appointed agent shall not be required to search the public record for a possible recorded satisfaction or release. (Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)

(765 ILCS 935/20) Sec. 20. Contents of certificate of release. A certificate of release executed under this Act must contain substantially all of the following for each mortgage being released: (a) The name of the mortgagor, the name of the original mortgagee, and, if applicable, the mortgage servicer at the date of the mortgage, the date of recording, and the volume and page or document number or other official recording designation in the real property records where the mortgage is recorded. (b) A statement that the mortgage was paid in accordance with the written payoff statement and there is no objection from the mortgagee or mortgage servicer or its successor in interest. With respect to previously paid mortgages, the hold-harmless letter from a title insurance company, as provided in Section 10.1 of this Act, shall satisfy this requirement. (c) A statement that the person executing the certificate of release is an officer or a duly appointed agent of a title insurance company authorized and licensed to transact the business of insuring titles to interests in real property in this State pursuant to subsections (2) and (3) of Section 3 of the Title Insurance Act. (d) A statement that the certificate of release is made on behalf of the mortgagor or a person who acquired title from the mortgagor to all or a part of the property described in the mortgage. (e) A statement that the mortgagee or mortgage servicer provided a written payoff statement. The hold-harmless letter from a title insurance company, as provided in Section 10.1 of this Act, shall satisfy this requirement with respect to previously paid mortgages. (Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)

(765 ILCS 935/25) Sec. 25. Execution. A certificate of release authorized by Section 15 must be executed and acknowledged as required by law, as in the case of a deed, and may be executed by an officer or a duly appointed agent of a title insurance company. The agent must be a currently registered title insurance agent of the title insurance company. (Source: P.A. 92-765, eff. 8-6-02.)

(765 ILCS 935/30) Sec. 30. Appointment of title insurance agent. (a) The appointment of a title insurance agent must be executed and acknowledged as required by law, as in the case of a deed, and must state all of the following: (1) the identity of the title insurance company as

the principal;

(2) the identity of the person, partnership, limited

partnership, limited liability company, limited liability partnership, or corporation authorized to act as title insurance agent to execute and record certificates of release provided for in this Act on behalf of the title insurance company;

(3) that the title insurance agent has the full

authority to execute and record certificates of release provided for in this Act on behalf of the title insurance company;

(4) the term of appointment of the title insurance

(5) that the title insurance agent has consented to

and accepts the terms of the appointment.

(b) The delegation to a title insurance agent by a title insurance company shall not relieve the title insurance company of any liability for actual damages as provided in Section 40. (c) A title insurance company may create an instrument, executed by an officer of that company and acknowledged in the same manner as a deed, appointing one or more title insurance agents authorized to issue certificates of release under this Act. This instrument shall designate the county or counties in which it is to be effective and shall be recorded with the recorder in each of those counties, either as an original instrument or by recording a copy certified by the recorder of one of the counties. A separate appointment of title insurance agent shall not be necessary for each certificate of release. The appointment of an agent may be re-recorded where necessary to establish authority of the agent, but the authority shall continue until a revocation of appointment is recorded in the office of the recorder where the appointment of title insurance agent was recorded or on the date, if any, in the recorded appointment document. (Source: P.A. 92-765, eff. 8-6-02.)

(765 ILCS 935/35) Sec. 35. Effect of recording certificate of release. For purposes of releasing the lien of the mortgage, a certificate of release containing the information and statements provided for in Section 20 and executed as provided in Section 25 is prima facie evidence of the facts contained therein, and upon being recorded with the recorder, shall constitute a release of the lien of the mortgage described in the certificate of release. The title insurance company or title insurance agent recording the certificate of release may use the recording fee it may have collected for the recording of a release or satisfaction of the mortgage to effect the recording of the certificate of release. (Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)

(765 ILCS 935/40) Sec. 40. Wrongful or erroneous certificate of release. Recording of a wrongful or erroneous certificate of release by a title insurance company or its title insurance agent shall not relieve the mortgagor or the mortgagor's successors or assignees from any personal liability on the loan or other obligations secured by the mortgage. In addition to any other remedy provided by law, a title insurance company executing or recording a certificate of release under this Act is liable to the mortgagee for actual damages sustained due to the recording of the certificate of release. The prevailing party in any action or proceeding seeking actual damages due to the recording of a certificate of release shall be entitled to the recovery of reasonable attorneys fees and costs incurred in that action or proceeding. (Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)

(765 ILCS 935/45) Sec. 45. Recording. If a mortgage is recorded in more than one county and a certificate of release is recorded in one of them, a certified copy of the certificate of release may be recorded in another county with the same effect as the original. In all cases, the certificate of release shall be entered and indexed where satisfactions or releases of mortgage are entered and indexed. (Source: P.A. 92-765, eff. 8-6-02.)

(765 ILCS 935/50) Sec. 50. Form of certificate of release. A certificate of release, in substantially the following form, allowing for alterations to permit the inclusion of multiple mortgages, both presently and previously paid, complies with this Act. CERTIFICATE OF RELEASE Date: ........ Title Order No.: ..... 1. Name of mortgagor(s): ..... 2. Name of original mortgagee: ..... 3. Name of mortgage servicer (if any):..... 4. Mortgage recording: Vol.: .... Page: ..... or Document No.: ..... 5. The above referenced mortgage has been paid in accordance with the payoff statement and there is no objection from the mortgagee or mortgage servicer or its successor in interest to the recording of this certificate of release. 6. The person executing this certificate of release is an officer or duly appointed agent of a title insurance company authorized and licensed to transact the business of insuring titles to interests in real property in this State pursuant to Section 30 of this Act. 7. This certificate of release is made on behalf of the mortgagor or a person who acquired title from the mortgagor to all or part of the property described in the mortgage. 8. The mortgagee or mortgage servicer provided a payoff statement. 9. The property described in the mortgage is as follows: Permanent Index Number: ..... Common Address: ..... (Name of title insurance company) By: ..... (Name of officer and title or name of agent and name of officer / representative thereof) Address: ..... Telephone No.: ..... State of Illinois) ) County of ) This instrument was acknowledged before me on .....(date) by .....(name of person) as .....(officer for / agent of) .....(title insurance company). ..... Notary Public My commission expires on ..... (Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)

(765 ILCS 935/55) Sec. 55. Form of appointment of title insurance agent for issuance of certificates of release. A title insurance company shall use the following form for the appointment of its title insurance agents for the purpose of executing certificates of release pursuant to this Act. APPOINTMENT OF TITLE INSURANCE AGENT OR AGENTS FOR ISSUANCE OF CERTIFICATES OF RELEASE ..... (name of title insurance company) appoints ..... (name of title insurance agent or agents) to act as its agent or agents for the purpose of executing and delivering for recording certificates of release as provided by the Mortgage Certificate of Release Act. This appointment shall commence on ..... (date) and (select one) continue until revoked as provided by that Act / terminate on ..... (date). The agent or agents appointed has/have consented to and accept the terms of this appointment. Dated this ..... (date). By: ..... (title insurance company) ..... (signature) ..... (typed / printed name & title) ..... (address) ..... (telephone number) State of Illinois) ) County of ) This instrument was acknowledged before me on .....(date) by .....(name of person) as .....(officer for / agent of) .....(title insurance company). ..... Notary Public My commission expires on..... (Source: P.A. 92-765, eff. 8-6-02.)

(765 ILCS 935/60) Sec. 60. Form of revocation of appointment of title insurance agent or agents for issuance of certificates of release. A title insurance company shall use the following form for the purpose of revoking the appointment of its title insurance agent's authorization for executing certificates of release pursuant to this Act. REVOCATION OF APPOINTMENT OF TITLE INSURANCE AGENT OR AGENTS FOR ISSUANCE OF CERTIFICATES OF RELEASE .... (name of title insurance company) revokes the appointment of ..... (name of title insurance agent or agents) to act as its agent for the purpose of executing and delivering for recording certificates of release as provided by the Mortgage Certificate of Release Act. This Revocation shall be effective upon the recording in each county, or on ..... (date), if subsequent to recording. A copy of this Revocation has been delivered to the named title insurance agent or agents by certified U. S. mail, return receipt requested, at the following address or addresses: .....(name of title insurance agent) .....(address) Dated this ..... (date). By: ..... (title insurance company) ..... (signature) ..... (typed / printed name & title) ..... (address) ..... (telephone number) State of Illinois) ) County of ) This instrument was acknowledged before me on .....(date) by .....(name of person) as .....(officer for / agent of) .....(title insurance company). ..... Notary Public My commission expires on..... (Source: P.A. 92-765, eff. 8-6-02.)

(765 ILCS 935/65) Sec. 65. (Repealed). (Source: P.A. 92-765, eff. 8-6-02. Repealed by P.A. 93-428, eff. 12-31-03.)

(765 ILCS 935/70) Sec. 70. Form of hold-harmless agreement. A hold-harmless agreement in substantially the following form, allowing for alterations to reflect the facts of the transaction and identity of the title insurance companies, complies with this Act. Hold-harmless Agreement TO: .................... (Presently insuring title insurance company) Re: Policy No.: ...... (Previously insuring title insurance company) Policy amount: $.............. Policy/Commitment No.: ............... (Presently insuring title insurance company) You show as exception number(s) .................. in your above referenced commitment for title insurance dated .........., the following exception(s): Mortgage dated ........., recorded as Document No. ....... made by ................................. (borrow) to ................................. (lender) to secure an indebtedness in the amount of $......... For and in consideration of your deleting said exception(s), we agree to indemnify you against loss that you may sustain as a result of said deletion. In no event may said indemnity exceed the face amount of our policy as noted above. In the event any claim is made against you as a result of your deletion, you agree to notify us within 30 days of the date the claim is made. Any action you take with respect to the claim will not obligate us under this letter unless the aforesaid notice has been furnished us and we have adequate time to consider our approval or disapproval of the action. .......................................... Title Insurance Company (Previously insuring) (Source: P.A. 93-428, eff. 12-31-03.)

(765 ILCS 935/90) Sec. 90. (Repealed). (Source: P.A. 92-765, eff. 8-6-02. Repealed by P.A. 93-428, eff. 12-31-03.)

(765 ILCS 935/95) Sec. 95. (Amendatory provisions; text omitted). (Source: P.A. 92-765, eff. 8-6-02; text omitted.)

(765 ILCS 935/99) Sec. 99. Effective date. This Act takes effect upon becoming law. (Source: P.A. 92-765, eff. 8-6-02.)

Get free summaries of new opinions delivered to your inbox!

• Bankruptcy Lawyers
• Business Lawyers
• Criminal Lawyers
• Employment Lawyers
• Estate Planning Lawyers
• Family Lawyers
• Personal Injury Lawyers
• Estate Planning
• Personal Injury
• Business Formation
• Business Operations
• Intellectual Property
• International Trade
• Real Estate
• Financial Aid
• Course Outlines
• Law Journals
• US Constitution
• Regulations
• Supreme Court
• Circuit Courts
• District Courts
• Dockets & Filings
• State Constitutions
• State Codes
• State Case Law
• Legal Blogs
• Business Forms
• Product Recalls
• Justia Connect Membership
• Justia Premium Placements
• Justia Elevate (SEO, Websites)
• Justia Amplify (PPC, GBP)
• Testimonials

Illinois Court rules that merger doctrine satisfies judgment

Update filed as commercial law , current case alert · sep 19, 2019.

In Access Realty Grp., Inc. v. Kane, 2019 IL App (1st) 180173 (Sept. 13, 2019) an Illinois Appellate Court upheld the dismissal of a citation proceeding by the creditor’s assignee on the grounds that the merger doctrine satisfied the underlying judgment. Because the plaintiff was no longer a judgment creditor, it also upheld the dismissal of the assignee’s damages suit relating to that judgment

The lender brought a suit against the original debtor for defaulting on a loan. The parties settled and the court entered a $783,000 judgment against the debtor. The lender then brought a supplementary proceeding to identify any assets of the debtor that could satisfy the judgment.

A year or so later, the debtor’s business partner (“partner”) executed a promissory note for $1.2 million, payable to the debtor. As part of the citation proceedings, the trial court ordered the note be transferred from the debtor to the lender. The turnover order also instructed that the proceeds from the note be used to pay the judgment.

The partner’s company (“assignee”) subsequently acquired the judgment through an assignment. It then substituted into the citation proceeding as the judgment creditor. The debtor then moved to dismiss the proceedings arguing that once the lender assigned the judgment to the assignee, the merger doctrine extinguished the judgment debt. Debtor claimed that since the partner controlled the assignee as an instrumentality to conduct his own personal affairs, the partner’s interest in the the judgment merged with his obligation as the payor of the note, which had been turned over to satisfy the judgment. The trial court agreed and dismissed the proceedings.

In a separate lawsuit, the assignee sought damages from the debtor based on alleged violations of the Uniform Fraudulent Transfer Act related to the debt underlying the lender’s judgment. But once the court in the citation proceeding found that the judgment was satisfied, it ruled that the assignee lacked standing to bring this suit.

Both decisions were affirmed on appeal. The assignee argued that the merger doctrine was inapplicable because the obligor of the note is the partner, an individual shareholder and officer, whereas the holder of the judgment is a corporation. They are thus separate entities precluding the application of the doctrine.

The Court was not persuaded. It acknowledged the assignee was a separate legal entity from the partner. But it may disregard a corporate entity where it is merely the alter ego or business conduit of another person. The court did not engage in a veil-piercing analysis, but said that some of the principles of the veil-piercing doctrine apply to determine whether the assignee and the partner share the same “qualities” for purposes of the merger doctrine. The partner was the assignee’s sole shareholder, president, secretary, and registered agent. And the assignee never denied that the partner controlled the company and used it as an instrumentality to conduct his personal business. As such, “[i]t would be unsound and an absurd result to permit [the partner], through the company he wholly owns and controls, to hold his own note and fail to pay himself, and then collect the [ ] judgment from [debtor]’s other assets.”

The court further noted that for purposes of the merger doctrine, the relevant inquiry is whether the “qualities” of debtor and creditor have become united in the same individual. It found that they were. The partner was entitled to receive the balance owing on the judgment as the sole shareholder of the assignee. At the same time, he was the payor on the note, and was bound to pay his own company the balance because the trial court had ordered the note be turned over to pay off the judgment. Thus, the partner was on both sides of the same obligation.

The dissent cautioned against disregarding the corporate fiction and criticized the majority’s conclusion that the partner was merely the assignee’s alter ego without going through the extensive veil-piercing analysis. The majority’s “qualities” analysis was flawed because the “quality of creditor” and the “quality of debtor” are always attributable to the obligee and the obligor, respectively.

The dissent found no support for the theory that the merger doctrine allows a money judgment to be satisfied by tendering an unliquidated—and perhaps uncollectible—debt rather than payment. The dissent warned that “[i]f merger were applied to every debt between a sole shareholder and his closely held corporation, the doctrine would effectively collapse all such debtor/creditor relationships. Shareholder loans could never exist between a sole shareholder and his corporation because the merger doctrine would automatically extinguish them at the moment of inception.”

James Noonan

Jim is a founding partner of Noonan & Lieberman. Jim has more than 25 years of experience in civil litigation on behalf of creditors, servicers, business and real estate owners.

Written by James Noonan

• Read More by this Author
• View Attorney Profile

Latest in this Category

• Illinois court says check maker is still liable to holder in due course on…
• Lender’s attempt to avoid foreclosure in Illinois backfires
• Seventh Circuit finds that “waiver of defense” clause in commercial guaranty did not waive…
• Wisconsin federal court awards fees to plaintiff for defendant’s attempt to remove case where…

Your browser is ancient! Upgrade to a different browser or install Google Chrome Frame to experience this site.

• Connecticut
• District of Columbia
• Massachusetts
• Mississippi
• New Hampshire
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• West Virginia
• US Legal Forms
• Illinois Assignment of Mortgage by Individual Mortgage Holder

Assignment Of Mortgage

Description illinois assignment mortgage form, illinois assignment of mortgage form related forms.

Assignment of Mortgage by Corporate Mortgage Holder

How to fill out Illinois Assignment Of Mortgage By Individual Mortgage Holder ?

Looking for Illinois Assignment of Mortgage by Individual Mortgage Holder templates and completing them can be a problem. To save time, costs and effort, use US Legal Forms and find the right template specifically for your state within a couple of clicks. Our lawyers draw up every document, so you simply need to fill them out. It truly is that simple.

Log in to your account and return to the form's web page and save the document. All of your saved templates are stored in My Forms and they are available always for further use later. If you haven’t subscribed yet, you need to sign up.

Take a look at our comprehensive guidelines regarding how to get your Illinois Assignment of Mortgage by Individual Mortgage Holder sample in a couple of minutes:

• To get an eligible form, check its applicability for your state.
• Look at the example making use of the Preview option (if it’s available).
• If there's a description, read through it to learn the details.
• Click Buy Now if you found what you're searching for.
• Pick your plan on the pricing page and make an account.
• Select you wish to pay by way of a credit card or by PayPal.
• Download the sample in the preferred format.

You can print the Illinois Assignment of Mortgage by Individual Mortgage Holder template or fill it out making use of any online editor. Don’t concern yourself with making typos because your form can be utilized and sent, and printed as many times as you would like. Try out US Legal Forms and access to over 85,000 state-specific legal and tax files.

Show more info

Form rating, form popularity, what happens if mortgage is not recorded.

If the borrower on a recorded mortgage defaults, the lender can foreclose and either be paid in full or receive the property. However, if a mortgage or deed of trust was not recorded, the lender cannot foreclose against the property, just against the defaulting borrower personally.

What does corporate assignment of mortgage mean?

Corporate mortgage assignment defined. An assignment of a mortgage occurs when a loan for a piece of property (home or otherwise) is assigned to another party.A corporate assignment of a mortgage occurs when the third party that assumes the obligation for the loan is a corporation.

What does it mean when a mortgage is assigned?

What does Assignment of Mortgage mean: The most common example of an Assignment of Mortgage is when a mortgage lender transfers/sells the mortgage to another lender. This can be done more than once until the balance is paid.If a borrower transfers the mortgage to another borrower, this is called an assumed mortgage.

Does an assignment of mortgage have to be recorded?

An assignment transfers all of the original mortgagee's interest under the mortgage or deed of trust to the new bank. Generally, the mortgage or deed of trust is recorded shortly after the mortgagors sign it and, if the mortgage is subsequently transferred, each assignment is to be recorded in the county land records.

What does mortgage assignment mean?

An assignment of mortgage gives the loan seller's rights under the mortgage, including the right to foreclose if the borrower doesn't make payments, to the new owner of the loan.

Are mortgage assignments recorded?

Banks often sell and buy mortgages from each other as a way to liquidate assets and improve their credit ratings. When the original lender sells the debt to another bank or an investor, a mortgage assignment is created and recorded in the public record and the promissory note is endorsed.

Who holds the title to real property when a mortgage is given?

In title theory states, a lender holds the actual legal title to a piece of real estate for the life of the loan while the borrower/mortgagor holds the equitable title.

Does a private mortgage have to be recorded?

You will need to sign a promissory note and a mortgage or trust deed.The document should be signed and dated by the borrower, and you will need to file or record the document at the local recorder of deeds office or other office responsible for the filing of real estate documents.

Why would a lender want to assign a mortgage loan?

A mortgage lender can transfer a mortgage to another company using an assignment agreement.Many banks and mortgage lenders sell outstanding loans in order to free up money to lend to new borrowers, and use an assignment of mortgage to legally grant the loan obligation to the new mortgage holder.

Trusted and secure by over 3 million people of the world’s leading companies

• No results found.

State of Illinois

Chancery Division

The Chancery Division of the Circuit Court of Cook County is established pursuant to General Order 1.2, 2.1 (b) of the General Orders of the Circuit Court of Cook County and is divided into two sections: the  General Chancery Section and the  Mortgage Foreclosure / Mechanics Lien Section .

The Chancery Division hears matters concerning:

• Injunctions
• Class Actions
• Mortgage Foreclosures
• Declaratory Judgments
• Contract Matters
• Creditors' Rights
• Construction of Wills and Trusts
• Trusteeships
• Receiverships
• Dissolutions of Partnerships and Corporations
• Statutory and Administrative Reviews
• Mortgage Foreclosures Section / Mechanics Lien Section
• General Chancery Section

Judges Information

General administrative orders, case information.

For case information, contact the Clerk of the Circuit Court of Cook County .  Chancery Clerk Phone: (312) 603-5133

Clerk of the Circuit Court Forms Search

Zoom Information

General Chancery Section Zoom Information

Mechanics Lien/Mortgage Foreclosure Section Zoom Information

What's On this page

Lender Liability in Illinois: Steering Clear of Borrower Claims

• Share on Facebook
• Share on Twitter
• Share on Pinterest
• Share on LinkedIn
• Share on Tumblr
• Share on Reddit
• Share by Mail

Lenders often contact their lawyers and describe a factual scenario that ends with the inquiry: “Will this expose us to a lender liability claim?” The short answer is, “Yes, probably.” The long answer begins with, “However…” To help minimize their risk, lenders should start by gaining an understanding of the major theories of recovery commonly used by borrowers in pursuing these types of claims.

Theories of Recovery and Supporting Case Law

The most popular theory of recovery is breach of contract, which often arises when a lender refuses to lend after issuing a loan commitment. However, lenders are also sued for electing to waive certain requirements in loan documents. In an Illinois example, LaSalle Bank Nat’l Assoc. v. Paramont Properties et a l, the lender (i) did not require properly executed requests for advances as a condition to construction draws; (ii) did not inspect the progress of construction before disbursing funds, where language in the note listed inspections as one of a number of things the lender could require before disbursing funds; (iii) allowed construction draws without the written approval of the borrower and (iv) refused to allow additional draws to cover cost overruns and environmental site assessment costs. Although these actions went against requirements in the loan documents, the lender maintained that the provisions at issue were solely for the lender’s benefit and, as such, the lender should be free to waive them at any time. The court, however, found instead that the provisions were mandatory preconditions—not options that the lender could choose whether to pursue.

Another common theory of recovery is the breach of implied covenant of good faith and fair dealing, which often comes into play in a foreclosure situation where the sales price of a property is much less than the borrower expected. Another instance where a borrower might sue a lender for breach of implied covenant of good faith and fair dealing is illustrated in Federal National Mortgage Association v. Kenneth J. Wisniewski, et al . In this 2009 Illinois case, the borrowers sued the lender for allegedly delaying the evaluation and approval of the borrowers’ refinancing attempts. The borrowers further claimed that the lender’s delays unreasonably deprived them of their ability to finance the project, thereby breaching the covenant of good faith.

Borrowers also pursue lender liability claims using the breach of fiduciary duty theory of recovery. While financial lending institutions are generally not considered insiders or fiduciaries of their borrowers, some courts have made an exception to this general rule when the lending institution exerts control over a debtor. In these cases, courts have reasoned that control does not exist simply because there is a great imbalance in bargaining power or because the lender and the borrower share a close relationship. Rather, the lender’s control “must be so overwhelming that there must be, to some extent, a merger of identity” or a “domination of the debtor’s will.” For example, the lender must “exercise sufficient authority…so as to dictate corporate policy and the disposition of assets.” (See In re S.M. Acquisition Co. and Matrix IV, Inc. v. American National Bank and Trust Company of Chicago and In re American Consolidated Transportation Companies, Inc., et al for further discussion of the types of lender control that may give rise to breach of fiduciary duty claims.)

In some instances, a contract action may not be possible due to a statute of frauds defense. In these instances, borrowers may proceed under the theory of negligent misrepresentation in attempt to circumvent the statute of frauds issue. A common scenario is where the bank represents that it will loan money to the borrower and the borrower incurs expenses to improve its property or expand its business operations. If the bank later refuses to loan the funds, the borrower may sue under the theory of negligent misrepresentation. Illinois courts have found that a bank’s oral promise should be enforced in situations where the bank should have expected that the borrower would rely on that promise, ultimately to the borrower’s detriment.

Fraud claims, which most often arise when a borrower believes it has been deceived in some way by a lender, are yet another theory of recovery. In order to succeed with a fraud claim against a lender in Illinois, a borrower is required to prove (i) that there was a false statement of material fact that the lender knew or believed to be false, with the intent to induce the borrower to act; (ii) that the borrower justifiably relied upon the statement; and (iii) that the borrower suffered damage as a result. Adding to these requirements, fraud claims have been further limited by the Illinois Credit Agreements Act, which requires a debtor to prove the statement at issue is set forth in a written agreement signed by both the debtor and the lender. Even so, a review of Illinois case law illustrates that fraud claims remain an area of risk for lenders. For example, in Gaudie v. Countrywide Home Loan, Inc. , a lender and an appraiser allegedly engaged in a joint effort to defraud the borrower by falsely inflating the appraised value of the borrower’s property with the intention that the borrower would rely on that appraisal in deciding whether or not to finance the property. The court in Gaudie found that the borrower had sufficiently pled the who, what, where and why of the alleged fraudulent scheme to withstand the lender’s motion to dismiss. Further, Illinois courts have found that a fraud “may consist of the intentional omission or concealment of a material fact under circumstances creating an opportunity and duty to speak” in cases such as Euroholdings Capital and Investment Corp. v. Harris Trust and Savings Bank . In this 2008 Illinois case, the borrower was preparing to sell a majority interest in its company; however, the borrower’s primary lender failed to tell the purchaser prior to closing that the lender intended to withdraw as the borrower’s primary lender. The court denied the lender’s summary judgment motion as to the alleged fraud claim, reasoning that “it is one thing for a bank’s customer to be insolvent, but quite another for a bank to undertake conduct that will contribute to its customer’s insolvency.”

Bottom Line for Lenders

Whether it involves a breach of contract, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty, negligent misrepresentation, fraud or a myriad of other recovery theories, the sky is the limit in terms of the potential for lender liability claims. However, by avoiding actions that breach agreements or commitments with borrowers; by carefully documenting, monitoring and enforcing the parties’ rights and obligations; and by avoiding involvement in borrowers’ corporate management and business operations, lenders are more likely to steer clear of costly and distracting liability claims.

This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.

Wendy represents clients in both Illinois and Wisconsin in a wide variety of commercial real estate and real estate finance transactions. In addition to handling acquisitions, dispositions and leases, Wendy also advises lenders on loan transactions, loan workouts, loan restructurings, forbearance and pre-foreclosure matters.  If you need assistance with a related matter, contact Wendy .

Locations in Illinois & Wisconsin

Chicago : 216 S Jefferson St, Suite 303, Chicago, IL 60661 • (312) 382-1600

Milwaukee: 250 E. Wisconsin Avenue, Suite 1800, Milwaukee, WI 53202 • (414) 276-4080

Pleasant Prairie: 10411 Corporate Dr, Pleasant Prairie, WI 53158 • (262) 857-1600