At the time of his death, the decedent was the owner of a residential property subject to a bank-held mortgage. The bank did not file a foreclosure action within two years of the decedent’s death and no probate estate was opened. After the estate was formed, it moved to bar all claims by the bank based on the two-year limitations period in section 18-12(b) of the Probate Act. The trial court granted the motion and the bank appealed, challenging the applicability of section 18-12(b) to claims arising out of a mortgage. The appellate court held that the bank failed to file a timely claim against the estate and that it was prevented from reaching estate assets to satisfy the debt, but that it was not precluded from taking future foreclosure action against the property covered by the mortgage. The appellate court also held that the trial court erred in compelling the bank to issue a tender and release of its mortgage and remanded so that the recording of the release of mortgage could be undone and the public land records corrected. (DeARMOND and HARRIS, concurring)
Illinois Appellate Court
Civil Court
Mortgage Foreclosure