Legal Question in Real Estate Law in Illinois

My mortgage lender said they had no record of me requesting to update my address but I did back in February 2015. They sold my loan in June 2015 and though i continued to pay the original lender the checks were being returned to my old address and I learned my home is now in foreclosure in December 2015. Payments were made online through my bank. Even though I now have a check for all the payments made, late fee's and attorney fee's have accumulated from the new mortgage holder. My original lender didn't send an email or send a letter to the property address, both of which they had on file or notify my bank to stop sending payments for a non-existent account. They were using an old address and phone number. Do I have any legal grounds to force the original lender to pay the fee's that are being added to the balance due? Thanks!


Asked on 1/26/16, 7:31 am

1 Answer from Attorneys
Henry Repay Law Offices of Henry Repay

Hopefully, you'll get several responses. My thoughts revolve around two options. First, would be to file a counterclaim in the foreclosure case. While I am not sure how much you are talking about, unfortunately, that probably means paying an attorney an hourly fee and there is always uncertainty about outcomes. If you can work it out to stop the proceedings on the lender side, that could be helpful in minimizing additional cost, but you nevertheless may not find the cost-benefit analysis favorable in hiring an attorney and pursuing things. Perhaps there are some foreclosure defense attorneys that will chime in on your question. The second option would be to have one of the consumer law firms look over everything to determine whether a claim can be made pursuant to various of the lender laws aimed at protecting borrowers. Usually, the firms handling claims of that nature work based on the laws providing for awards of attorneys' fees.

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Answered on 1/26/16, 10:34 am


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