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  1. #1
    Join Date
    Oct 2011
    Posts
    3

    Default Deed in Lieu - Bank Hasn't Recorded Deed

    My question involves real estate located in the State of: Illinois

    I'm completing a deed in lieu with my mortgage company have have a concern regaring banks recently not wanting to record the deed until they can resale the house. My question is in regards to my continued liability (if any) towards HOA fees.

    My HOA regulations require that I submit documentation of the transfer on my unit (completed deed, etc) as "evidence of transfer of ownership" and I also have a statement from the HOA showing a balance of $0.00 owed as of the date of the deed transfer.

    If the bank fails to record the deed am I still liable for any future HOA fees (incurred after the deed was completed)? Under Illinois law am I still liable for the property once a deed is completed or does it have to be recorded to remove me from any liability on the property? Same concerns with regards to property tax - when does the property offically transfer and is the deed being recorded legally necessary in Illinois to have an official transfer of ownership?

    In general, if any claims arise out of my name still being the name on the property in the county offices does the fact that a deed transfer was completed between the bank and I shield me from any claims/liability? If a claim arises do I just state that I am not the owner of the property, haven't been since X date, and use the deed in lieu documents as evidence?

    Thanks!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Deed in Lieu - Bank Hasn't Recorded Deed

    If the HOA agrees that they will release you from further liability based upon your documentation of the completed transaction, even if the deed is not reported, get them to confirm that in writing, document the completed transaction to them, and keep copies of all documents "just in case".

    If you want to know the policies of your county treasurer's office in this type of situation, I suggest contacting them.

  3. #3
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Deed in Lieu - Bank Hasn't Recorded Deed

    Yep, we've found that the banks are playing this game both in deed-in-loos and foreclosures. By dodging actual recording of the deed, they skip out on paying the associated things like HOA fees.

  4. #4
    Join Date
    Oct 2011
    Posts
    3

    Default Re: Deed in Lieu - Bank Hasn't Recorded Deed

    That's interesting...how can you still be liabile for ANYTHING regarding the house after the execution of the deed since in Illinois once the deed is executed then all interest/liability in the property is legally transfered - the deed does not need to be recorded in Illinois, it's reccommended but not legally necessary. Sure you're not publishing the deed change to the world via it being revorded, but at worst even if you were pursued for anything relating to the property couldn't you just show up, show the deed in lieu paperwork and say that as of the time that the deed was executed I am no long the owner and have no liability/interest in the property?

    Whether or not it's recorded it's still a binding legal document showing that as of the time of execution all interest /liability is being transfered according to the laws of the state. As long as I have a statement from the HOA showing a zero balance (liability) on the day that the deed was executed then legal how would they be able to pursue me for anything after the date of execution? I'm not doubting or questioning your response but it just seems like a very simple concept to me...espically since legally once the deed is properly and completely executed between my attorney and the bank that as of that date I'm not the onwer and not responsible for anything regarding the property. Whether or not it's recorded means nothing, that's just publication of the deed execution, and whether it's publicized or not doesn't change that it happened and it's not legally reguired. At worst, if you were pursued for any type of damages arising from the property could you just notifiy the party claiming damages , provide them copies of the legal paperwork and new deed, and be off the hook? At worse worst (haha) if you were sued isn't an affirmative defense your complete, and properly executed deed, showing transfer of all liability/interest?

    Thanks

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