Must all mortgages for land and the property on it be recorded in Il.? Is it still enforceable if its not?
Answer
The loan should be collectible and the mortgage valid regardless of recording. Recording serves the purpose of putting others on notice. So, for example, if money is lent with a mortgage given, but it is not recorded, then money is lent by a second who would not know that there is another mortgage already on the property, then the second lender may gain priority. Also, the failure to record may impact whether the security interest has been perfected which may impact certain issues, bankruptcy for example. You may get a better response by giving the basis for your question, letting attorneys on this site know what is actually going on.
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