summary
Introduced
01/31/2025
01/31/2025
In Committee
04/23/2025
04/23/2025
Crossed Over
04/09/2025
04/09/2025
Passed
08/01/2025
08/01/2025
Dead
Signed/Enacted/Adopted
08/01/2025
08/01/2025
Introduced Session
104th General Assembly
Bill Summary
Amends the Mortgage Act. Provides that the Act does not abrogate the Illinois common law that the payment in full of a debt secured by a mortgage extinguishes the lien. Provides that payment in full of a debt secured by a mortgage pursuant to a payoff statement, as defined in the Mortgage Certificate of Release Act, issued by or on behalf of the holder of the indebtedness extinguishes the lien of the mortgage. Effective immediately.
AI Summary
This bill amends the Illinois Mortgage Act to clarify two important legal points regarding mortgage liens. First, the bill explicitly preserves existing Illinois common law, which states that when a debt secured by a mortgage is fully paid, the lien on the property is automatically extinguished. Second, the bill specifically provides that when a debt is paid in full using a payoff statement (as defined in the Mortgage Certificate of Release Act) issued by the debt holder, the mortgage lien is considered extinguished. This legislation helps provide legal certainty for homeowners and lenders by codifying existing practice and common law principles related to mortgage debt satisfaction. The bill takes effect immediately upon becoming law, which means its provisions will apply as soon as it is signed, providing immediate clarity to mortgage transactions in Illinois.
Committee Categories
Justice
Sponsors (2)
Last Action
Public Act . . . . . . . . . 104-0101 (on 08/01/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1443&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1443enr.htm |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1443eng.htm |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1443.htm |
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