Legal Question in Credit and Debt Law in Illinois

mortgage lender mistake

Last month I received a letter from my mortgage lender congratulating me on paying off my mortgage. They indicated that they had sent my payoff notice to the county recorder of deeds. I confirmed that and the recorder of deeds told me I could come and get my deed. The problem is, I didn't pay off my mortgage. They made a mistake. What am I obligated to do? I pay my mortgage on line and it's now gone from my account.


Asked on 10/06/07, 5:41 pm

2 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: mortgage lender mistake

Sooner or later they are going to realize their mistake, and they will likely be entitled to the money they should have received. I would suggest contacting them and explaining the situation. If they still insist on not taking your money, it might be a good idea to put it aside, since as I said, sooner or later they are going to figure out that the loan is not paid.

Read more
Answered on 10/10/07, 9:20 am
Joseph Michelotti Michelotti & Associates, Ltd.

Re: mortgage lender mistake

The Recorder of deds does not hold your deed. If the mortgage company issues a release and forwarded you a canceled note, you are no longer obligatged to pay the mortgage.

So something is wrong in your stated set of facts.

email me if you have any other questions.

Read more
Answered on 10/07/07, 1:48 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Illinois