Legal Question in Real Estate Law in Illinois

I had a Chapter 13 where the plan provided for the surrender of property. The judge stated the property had to be deeded back to the mortgage companies. The special terms stated that the debtor is surrending the real estate property to the lender. In full satisfaction of its secured claim pursuant to 11 U.S.C. 1322 (b) (9) legal title to the aforementioned property shall vest the lender upon confirmation of the Debtor’s Chapter 13 Plan. The bank who holds the second mortgage refuses to take the property back. Who legally owns the property?

Asked on 1/16/18, 8:29 am

1 Answer from Attorneys

Sounds like you had a first and second mortgage. You don't say if either filed a foreclosure, but a 1st mortgagee has to include the second, and vice versa - all parties with an interest in the property are supposed to be part of the suit. But you don't give any information about this, and it is impossible to interpret a court order in this forum. You need to take the order to an attorney. It MAY be that the deed has to be given to the first mortgagee and it may then have to foreclose out the second.... MAY.

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Answered on 1/21/18, 10:42 am

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