Reverse Mortgage Solutions, Inc. v. Rahman
2017 IL App (1st) 161035
| Ill. App. Ct. | 2017Background
- Harvey and Rosalind Collins purchased 1486 E. 56th St., Chicago, as joint tenants in 1961. In 1979 Harvey executed a quitclaim deed conveying his interest to Rosalind; the deed used a truncated legal description but listed the property address.
- Rosalind died in 2003; no will or probate estate was opened according to the record. Harvey continued to reside at the property.
- In 2006 Harvey executed a reverse mortgage on the property; the mortgage included a full legal description and was later assigned to Reverse Mortgage Solutions (RMS). Harvey died in 2011.
- RMS filed to foreclose and sought reformation of the mortgage (arguing the mortgage’s legal description should match the 1979 deed). Rahman (daughter/heir) moved to dismiss, arguing the 1979 deed left Harvey with no title to mortgage.
- The trial court held the 1979 quitclaim deed was effective but dismissed RMS’s foreclosure/quiet-title claims for failure to allege facts showing Harvey regained an interest; it denied Rahman’s Rule 137 sanctions motion. RMS appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of 1979 quitclaim deed (sufficient description) | RMS: deed’s truncated description is insufficient; deed is void for uncertainty | Rahman: deed is legally sufficient to convey Harvey’s interest to Rosalind | Court: deed is legally sufficient; extrinsic evidence and presumption of intent make description adequate |
| Whether Harvey later held mortgageable interest after Rosalind’s death | RMS: Rosalind died intestate; Harvey inherited at least a partial interest and could validly mortgage that share; equitable lien alleged alternatively | Rahman: If 1979 deed conveyed full title to Rosalind, Harvey had no title to mortgage and thus RMS lacks standing | Court: RMS pleaded that Rosalind died intestate and Harvey inherited some interest; dismissal under 2-619 was improper — factual issues remain and case remanded for further proceedings |
| Effect of mortgage purporting to cover whole property when mortgagor owned less than whole | RMS: cotenant may mortgage his interest; mortgage valid as to mortgagor’s actual interest | Rahman: mortgage invalid because Harvey had no interest to convey | Court: Mortgage may be effective as to mortgagor’s actual interest; applicable precedent supports enforcement to the extent of mortgagor’s interest |
| Rule 137 sanctions for filing meritless pleadings | Rahman: RMS’s repeated, allegedly baseless complaints warranted sanctions | RMS: claims had arguable legal and factual basis; not frivolous | Court: Denial of sanctions affirmed — trial court did not abuse discretion; pleadings not frivolous enough to warrant sanctions |
Key Cases Cited
- Brunotte v. DeWitt, 360 Ill. 518 (Ill. 1935) (deed description is sufficient if a competent surveyor can locate property; extrinsic evidence may supply uncertainty)
- Cadle Co. II v. Stauffenberg, 221 Ill. App. 3d 267 (Ill. App. 1991) (cotenant may mortgage his or her interest; mortgage binds only the mortgagor’s actual interest)
- South Side Bank & Trust Co. v. Sherlock Homes, Inc., 6 Ill. App. 2d 138 (Ill. App. 1955) (a mortgage purporting to grant greater estate than mortgagor owns is void only as to the excess)
- Lake Environmental, Inc. v. Arnold, 2015 IL 118110 (Ill. 2015) (standard of review and procedure for Rule 137 sanctions; denial reviewed for abuse of discretion)
- Evanston Insurance Co. v. Riseborough, 2014 IL 114271 (Ill. 2014) (de novo review of section 2-619 dismissals)