I loaned money to a borrower to purchase a property via a private lending mortgage broker. The loan was secured by 2 properties in Chicago.
In the closing documents, there's an Escrow Agreement which says the private lending mortgage broker acts as escrow agent for borrower and lender to hold said Quit Claim Deed: (Escrow agent = private lending mortgage broker) with the following terms
1.Borrower agrees to deliver to Escrow Agent an executed and notarized Quit Claim Deed running to Lenders for the properties
2. Escrow agent will hold said Quit Claim Deed until such time as he has been notified in writing by lender, that borrower is in default in payments under the Loan Documents, written notice has been provided to Borrower as defined in the Loan documents, and Borrower is at least 60 days past due on any payments due under the loan documents.
3. Upon written notification to Escrow Agent, he shall record the Quit Claim Deed to Lender, with the Recorder of Deeds in XXX county, no sooner than 70 days after the borrower's default...
My borrower had stopped payment since June 2015 and the loan has past due since Nov 2015. The Escrow Agent clearly knows the default payments as he gets fraction of the loan interest every month as part of his compensation on top of the initial closing fees.
However, the escrow agent did not do anything nor give me any advice on the Quit Claim recordation procedures. I spoke to the closing agent in the title company who closed the loan, they refused to help and said the responsibility is the escrow agent(Mortgage broker) to proceed the Quit Claim.
I have also a piece of QUIT CLAIM Deed signing off and notarized together with my closing documents.
What do I do? Thanks in advance for your advice.
Lawyer up, real estate lawyer that is...my coin.
Yep, you need a Chicago RE attorney. Escrowing a QCD likely is unenforceable if the borrower contests it, as it "circumvents foreclosure laws".