Elmer and Arletta Hans, husband and wife, owned a parcel of farmland in Illinois. They borrowed $100,000
Question:
Elmer and Arletta Hans, husband and wife, owned a parcel of farmland in Illinois. They borrowed $100,000 from First Illinois National Bank (First Illinois) and executed a note and mortgage to First Illinois, making the real estate security for the loan. The security agreement authorized First Illinois to take possession of the property on the occurrence of a default and required the Hanses to execute a quitclaim deed in favor of First Illinois. The state of Illinois recognizes the doctrine of redemption. When the Hanses defaulted on the loan, First Illinois filed a lawsuit, seeking an order requiring the Hanses to immediately execute a quitclaim deed to the property.
Topic Questions:
- Must the Hanses execute the quitclaim deed before the foreclosure sale? Why or why not?
- Would it matter if the loan proceeds were used to build a house on a piece of the land?
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying