Legal Question in Real Estate Law in Illinois

My house was on fire on 11/29 /2015 the insurance declared the property a total lost and paid for the insured value plus 10%. the mortgage company did not applied the founds to the mortgage and did not do anything . I have been calling twice per week checking and asking what is the problem, it seems no one knows what is going on , finally at the end of 2/2017 I was instructed by account manager to sent a final payment of $6553.50 in order to close the account and release the lien, which I did 3/22/2017. now they are asking to send more money because they are still charging interest and insurance for the property that was declared a total loss.

Do I have a case against the mortgage company?


Asked on 6/16/17, 12:47 pm

1 Answer from Attorneys

Not enough info and this is confusing. You have a mortgage and the house burned down. You got a settlement from the insurance company for the loss. The fact that the mortgage company didn't call the loan or demand the proceeds to reduce the loan (or even pay it off....) is irrelevant most likely, but an attorney would have to review the mortgage papers to see what the lender's rights were in that situation. If your loan was paid off, it was paid off. If the lender miscalculated the payoff, you should be able to contest that, or demand a proper accounting in order to get a release deed issued. But just because the house burns down isn't the lender's problem.... Case? I have no idea what kind of case you are thinking of, but again if it is because they miscalculated the payoff, first you should demand an accounting of payments -- but then you will need to be able to reconcile them against what you know you paid too.

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Answered on 6/23/17, 12:44 pm


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