Legal Question in Consumer Law in Illinois

1. The big requirement is that both mortgage companies must inform you of any transfer of the security instrument and note. If they do not and you continue making payments the new lender is required to credit those amounts toward your mortgage regardless of who they were paid to.

2. the assignment documents (the documents that record the transfer agreement and the transfer) must be recorded with the County Recorder of Deeds in the file with your mortgage or they are not valid. There is no requirement for the docs to be recorded with the court.

3. As stated above, there is no requirement that the mortgage institutions record their docs with the court, only with the County Recorder of Deeds.

If only the underlying financial obligation is sold, the lender has no obligation to inform you of the sale. If the servicer is changing, both the old servicer and the new servicer must notify you with instructions. There is no obligation to record anything to document the sale or transfer of the underlying debt, or a change in servicer. To assign a mortgage, an assignment needs to be recorded in the county recorder's office.