Legal Question in Real Estate Law in Illinois

Re: released mortage

The release of the mortgage does not necessarily terminate the debt. Evidence of the debt not only includes the mortgage, but a promissory note as well, on which you are likely responsible. There needs to be such a note in the documents that were issued when you first obtained the mortgage. Your contact with the bank should be in a formal, written fashion, and you should do it with counsel to protect yourself. For further information, I can be reached at 630-243-0099.

Re: released mortage

Wow! Things like that are why I stopped saying I've seen everything. The bank would have a statute of limitations of ten years after the date the balance of the loan was due. For example, if you took out a thirty loan in 1992, there is a pretty good argument that the bank could sue you up until 2032 (30 years plus 10). Here's the way it works: When you got your loan, you signed what is called a promissory note, which is your obligation to pay their money back. You also signed a mortgage, which puts a lien against your property. Since it sounds like the mortgage was released by someone other than the bank (which the title company should have noticed), there is also an argument that the lien is not even released from the property. That could be problems for the title company. I am really suprised that the bank isn't interested in getting their money, though.