Recording Problems: “Legal Description Attached” … Or Is It? -- Update

Recently, foreclosing lenders have begun adding reformation counts to foreclosure proceedings in order to correct the legal description on the mortgage being foreclosed. The average cost of a reformation count is $300, significantly more than the average $100 cost associated with correcting and re-recording the mortgage. Foreclosure firms are adding reformation counts to the foreclosure complaint for major mistakes, such as missing legal descriptions, as well as minor mistakes, such as typographical errors.

Ensuring the legal description is attached is especially important in Cook County, where the Cook County Recorder of Deeds has created a new procedure for correcting recorded documents. You can read about the new procedure here: Cook County-Corrective Recordings. The new procedure means that any corrections to a recorded deed or mortgage, even adding or amending the legal description, require all parties to the document to sign an affidavit.

Please be sure to compare the legal description on the deed and mortgage to the legal description on the commitment and survey (if available). When the legal description does not appear on the face of the document, make sure the description is attached as an exhibit to the recorded document.

If you have any questions about legal description discrepancies or other related issues, contact the ATG Underwriting Department, legal@atgf.com.