Wilmington Trust, N.A. v. Jelen

2020 IL App (1st) 192404-U
CourtAppellate Court of Illinois
DecidedDecember 22, 2020
Docket1-19-2404
StatusUnpublished

This text of 2020 IL App (1st) 192404-U (Wilmington Trust, N.A. v. Jelen) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilmington Trust, N.A. v. Jelen, 2020 IL App (1st) 192404-U (Ill. Ct. App. 2020).

Opinion

2020 IL App (1st) 19-2404-U

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

SECOND DIVISION December 22, 2020

IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT

WILMINGTON TRUST, N.A., as Successor ) Trustee to CITIBANK, N.A., as Trustee for BEARS ) Appeal from the Circuit Court of STERNS ALT-A TRUST, 2007-2, ) Cook County, Illinois, ) Chancery Division. Plaintiff-Appellee, ) ) No. 16 CH 4484 v. ) ) EWA JELEN, ) The Honorable ) William Sullivan, Defendant-Appellant. ) Judge Presiding. )

PRESIDING JUSTICE FITZGERALD SMITH delivered the judgment of the court. Justices Cobbs and Pucinski concurred in the judgment.

ORDER

¶1 Held: The trial court properly granted summary judgment in favor of the bank, where the record revealed no genuine issues of material fact regarding the propriety of the acceleration notice sent to the lender. For this same reason, the trial court did not abuse its discretion in approving the order of sale.

¶2 This appeal arises from a March 2016 mortgage foreclosure action filed by the plaintiff-

mortgagee, Wilmington N.A., as successor trustee to Citibank, N.A., as trustee for Bears Stern,

Alt-A Trust, 2007-2 (Wilmington) against the defendant-mortgagor, Ewa Jelen (Jelen). On

appeal, Jelen challenges the trial court’s grant of summary judgment in favor of Wilmington, and No. 1-19-2404

the trial court’s subsequent approval of the sale of the subject property to Wilmington. Jelen

argues that summary judgment was improper because there remains a genuine issue of material

fact as to whether Wilmington sent her an adequate notice of default and acceleration pursuant to

paragraph 22 of the subject mortgage. For the following reasons, we affirm.

¶3 II. BACKGROUND

¶4 The record reveals the following relevant facts and procedural history. On December 19,

2006, Jelen, as mortgagor, executed a mortgage in the amount of $315, 200 for the property

located at 1906 East Camp McDonald Road, Mount Prospect, Illinois 60056 (the property) with

the original mortgagee MidAmerica Bank, FSB (MidAmerica). Paragraphs 15 and 22 of that

mortgage document are relevant for purposes of this appeal.

¶5 Paragraph 22, entitled “Acceleration; Remedies,” states in full:

“Lenders shall give notice to Borrower prior to acceleration following Borrower’s breach

of any covenant or agreement in this Security Instrument (but not prior to acceleration under

Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the

default; (b) the action required to cure the default; (c) a date, not less than 30 days from the

date the notice is given to Borrower, by which the default must be cured; and (d) that failure

to cure the default on or before the date specified in the notice may result in acceleration of

the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of

the Property. The notice shall further inform Borrower of the right to reinstate after

acceleration and the right to assert in the foreclosure proceeding the nonexistence of a default

or any other defense of Borrower to acceleration and foreclosure. If the default is not cured

on or before the date specified in the notice, Lender at its option may require immediate

payment in full of all sums secured by this Security Instrument without further demand and

2 No. 1-19-2404

may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to

collect all expenses incurred in pursuing the remedies provided in this Section 22, including,

but not limited to, reasonable attorneys’ fees and costs of title evidence.”

¶6 In addition, paragraph 15, titled “Notices” provides that “all notices” given by the borrower

to the lender “must be in writing,” and “shall be deemed to have been given” to the borrower

when “mailed by first class mail or when actually delivered” to the borrower’s “notice address if

sent by other means.” In addition, “[t]he notice address” is designated as the borrower’s

property address, unless the borrower has designated a substitute address “by notice to the

lender.”

¶7 On August 27, 2010, Jelen executed a loan modification agreement with the new mortgagee,

PNC Mortgage (PNC).

¶8 On March 30, 2016, Wilmington filed a complaint to foreclose the mortgage against Jelen,

alleging that she was in default on her mortgage payments since August 1, 2014, for the amount

of $381,845.98. The parties agree that this was the second mortgage foreclosure action filed by

Wilmington in the instant matter. The first action was filed on April 14, 2015, and voluntarily

dismissed by Wilmington on March 22, 2016, eight days prior to the filing of the instant action.

See Wilmington Trust, N.A. v. Jelen, No. 2015 CH 6194 (hereinafter Wilmington I).

¶9 On October 17, 2016, Jelen filed her answer and affirmative defenses. Relevant to this

appeal, as one of her affirmative defenses, Jelen alleged that Wilmington had failed to meet a

condition precedent to the mortgage foreclosure action by failing to provide her with the

requisite notice specified under paragraph 22 of the mortgage document. Citing to Cathay Bank

v. Accetturo, 2016 IL App (1st) 152783, Jelen argued that such a notice is a condition precedent

3 No. 1-19-2404

to filing a mortgage foreclosure action and that “any notice” sent to her “did not contain the

specific notice and language required by paragraph 22 of the mortgage.”

¶ 10 Jelen also filed her counterclaim, 1 alleging a violation of the Fair Debt Collection Practices

Act (FDCPA) (15 USC § 1692 et seq. (2014)). According to the counterclaim, in contravention

of section 1692(c)(a)(2) of the FDCPA (15 USC § 1692(c)(a)(2) (2014)), Wilmington directly

corresponded with her even though she was represented by counsel, who appeared on her behalf

during the pendency of the original foreclosure proceedings.

¶ 11 On November 14, 2016, Wilmington filed its response to Jelen’s affirmative defenses

denying that it had failed to provide her with proper notice of acceleration. In addition,

Wilmington filed a motion to dismiss Jelen’s second counterclaim alleging that Jelen had failed

to specify when and what type of improper direct communication had occurred. On March 8,

2017, the trial court dismissed Jelen’s second counterclaim without prejudice, permitting her to

replead it.

¶ 12 On April 5, 2017, Jelen filed her amended counterclaim alleging that the correspondence in

question occurred on March 3, 2016, when she was sent a letter regarding the collection of the

debt she allegedly owed. Jelen contended that when this letter was sent, Wilmington was aware

that she was represented by counsel because counsel had appeared on her behalf at the original

mortgage foreclosure proceedings. Jelen therefore sought court costs, attorney’s fees and

unspecified damages. The March 3, 2016, letter was attached to the counterclaim. It is from a

debt collection law firm who obtained Jelen’s account from PNC.

1 The record reveals that Jelen filed two counterclaims. The first was dismissed by agreed order of the parties and is not relevant to this appeal.

4 No. 1-19-2404

¶ 13 On April 10, 2018, Wilmington filed a motion for summary judgment arguing that it

was entitled to relief as a matter of law. Relevant to this appeal, Wilmington contended that it

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Bluebook (online)
2020 IL App (1st) 192404-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilmington-trust-na-v-jelen-illappct-2020.