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:

1. Must the Hanses execute the quitclaim deed before the foreclosure sale? Why or why not?
2. Would it matter if the loan proceeds were used to build a house on a piece of the land?

Answer rating: 100% (QA)

Q1 Yes the Hanses must execute the quitclaim deed before the foreclosure sale As per the ... View the full answer