Legal Question in Real Estate Law in Illinois

Generally, no. A mortgage company will send a recordable release of mortgage after it receives its payoff funds at closing, and that release, when recorded, should stop that mortgage company from paying any taxes on that property out of your escrow.

A person faced with this problem may want to contact the mortgage company or escrow company directly as soon as possible to correct this problem.

This response is provided as a public service and does not create an attorney-client relationship or privilige. Talk with an attorney.

I agree with the previous response and would also mention that attached to the mortgage agreement in an Exhibit, or included in the language of the mortgage, there should a "Legal Description" describing the piece(s) of real estate that is/are subject to the terms of the mortgage agreement. Generally, that Legal Description will comport to the taxbills which need to be paid from the escrow.

If you sold two of the parcels that were subject to the mortgage (and presuming there was notification), then the mortgage lender would have to either modify the mortgage, recognizing that a portion of the property was sold, and give "releases" for the two parcels indicating that they were no longer subject to mortgage liens against those two parcels.

Also, it is not unusual for purchaser's of real estate to fail to change the mailing address on a taxbill so that the "Seller" of the property is no longer sent the taxbills when they become due. This may have failed to happen, in which case, the mortgagee may have mistakenly believed that the two parcels you sold were still owned by you.

With more details as to the exact circumstances that transpired, a more full explanation of your rights could be afforded to you.

As aptly described by the previous respondent to your question, "[t]his response is provided as a public service and does not create an attorney-client relationship or privilege. Talk with an attorney."