24
May
2021
“Cancelled Mortgage” Enforceable
Here, the Court held that the Credit Union’s mortgage on a member’s real estate, inadvertently marked as “cancelled” when the loan was not paid, was still enforceable.
This mortgage, sold by the Credit Union to the Federal Home Loan Mortgage Corp., was accidentally stamped as “cancelled” or paid. The mortgage was foreclosed upon and the debtors claimed that the “cancelled” mortgage was not enforceable.
The Court held the mortgage could be enforced, was valid and the mortgage sale could proceed. Federal Home Loan Mortgage Corporation v. First Nat’l Bank of Geneva and Belden Credit Union et al. (U.S. District Court, N. D. Illinois, E. D., Case No. 90-C-3322).
Author: Charles R. Harroun, Attorney at Law
This entry was posted
on Monday, May 24th, 2021 at 9:06 am and is filed under Mortgages, National, Secured Loans.
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