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Special Representative in Cook County

A Cook County Administrative Order requires Special Representatives to file an Answer and Appearance in the Foreclosure case. Since the Special Representative is not appointed under the Probate Act, he has no authority to obtain information directly. The heirs of the deceased mortgagor are the only people who can supply this information to the Special Representative. And communication with the Special Representative does not create a direct obligation to pay attorney fees. The Special Representative will receive fees from the Bank who is conducting the foreclosure. However, this amount may be added to the balance of the loan should the family choose to pay the loan off, or assume the loan.

Items to share with the Special Representative…

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If the foreclosure began when the decedent was alive:

Did the decedent receive a "Grace Period Notice" in the mail that encouraged the homeowner to seek counseling? This is a requirement of Illinois law.

Did the decedent have any agreements with the Bank?

Look for any correspondence that indicates a possible "modification" or "trial period". For instance, via mail or email the bank may have indicated that it would accept payments of principal only.

Are there any factual errors in the Complaint?

Usually in the 3rd Paragraph of a Complaint, the bank will indicate the principal balance due on the loan, and -- unless the mortgage was a "reverse mortgage" -- the Complaint will indicate the date of the last payment made.

Reverse Mortgages

Reverse mortgages are in default on the death of the borrower. But the bank still has to provide a notice that within 30 days, the bank will foreclose unless the family sells the property or deeds the property back to the bank.

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Heirship information

The bank will want to make sure it properly forecloses the interest of all the owners of the property to properly extinguish their interest and be able to sell the property free of title claims. So by providing an accurate Affidavit of Heirship, the Judge can be confident that everyone with an ownership right in the property is made aware of the process. Remember, if the bank is unaware of any heirs, they will have to Amend their Complaint and add the missing heirs as defendants.

Estate Planning documents

If the decedent used a Land Trust, Living Trust, or Will, these documents should be provided to the Special Representative to share with the Court. Again, the Judge wants to know everyone whose property rights are affected by this lawsuit.

Loan Assumption

One or more heirs may attempt to Assume (or even "Assume and Modify") the loan of the deceased relative. Try to talk to the bank, but beware many banks feel that without the family going to Probate Court they cannot discuss this loan with anyone. Further, most banks will not let a loan be assumed until the family catches up on all delinquent payments.