JP Morgan vs. Bell
2020 IL App (3d) 190128
Wednesday, July 1, 2020
A review of the recent Will County, Illinois case JP Morgan vs. Bell 2020 IL App (3d) 190128 (2020) raises two issues:
- Whether a
deceased mortgagor is a necessary party in a foreclosure proceeding.
- Whether a recorded
release and satisfaction of mortgage agreement and later a recorded certificate
of error as to a release and satisfaction by same entity creates a genuine
issue of material facts.
The Illinois Code provides that the necessary
parties to a foreclosure proceeding includes (1) the mortgagor and (II) other
persons (but not guarantors) who owe payments of indebtedness or the
performance of other obligations secured by the mortgage and against who
personal liability is asserted. 735 ILCS
5/15-1501 (a) (West 2016). Under section
15-1501(h)(1), the court is not required to appoint a special representative
for a deceased mortgagor for the purpose of defending the action, if there is a
living person, persons, or entity that holds a 100% interest in the property,
by virtue of being the deceased mortgagor’s surviving joint tenant or surviving
tenant by the entirety. The code also
provides that in no event may a deficiency judgment be sought or entered in the
foreclosure case against a deceased mortgagor.
The court resolved the second issue finding that the two recorded
documents created a material issue of fact.