Product: Mortgage

Here is the background of this transaction : There are XXXX units in the XXXX XXXX XXXX. Because more than half of the units are rented, federally-guaranteed mortgage financing is not available to unit buyers. Moreover, XXXX XXXX is in need of costly building repairs that can no longer be deferred. As a result, the market value of XXXX XXXX XXXX units has been severely depressed, and the only recent sales of XXXX XXXX units have been for cash and at deeply discounted prices. I and many other XXXX XXXX owners have been trying to sell our units, but we have not been able to do so without selling for a below-market price. 

Faced with this situation, XXXX XXXX hired a broker to find a buyer interested in buying our entire building - that is, all XXXX units and all of the common elements -- and then de-converting our condominium to a non-condominium apartment building pursuant to Section XXXX of the Illinois Condominium Property Act. Section 15 authorizes transactions of this type, and Section 15 requires that every owner must sell his or her unit when a bulk unit sale transaction has been approved by 75 % of ownership. 

The broker found a buyer ( namely, XXXX ) who is willing to pay a premium gross purchase price of {$390000.00} for all XXXX units in XXXX XXXX in a bulk purchase transaction pursuant to Section 15 of the Illinois Condominium Property Act, with a portion of the purchase price allocated to each unit on the basis of each unit 's percentage ownership interest in the common elements. The proposed transaction with XXXX XXXX XXXX presents an especially attractive opportunity for my unit. The price that XXXX XXXX XXXX XXXX is prepared to pay for my unit ( and the other XXXX units in XXXX XXXX ) is at least 20 % higher than the price paid for any XXXX XXXX unit in many years. Moreover, the bulk sale structure involves significantly lower brokerage commissions. 

The proposed transaction with XXXX was recently approved by over 80 % of XXXX XXXX 's owners, so Illinois law requires that I and every other XXXX XXXX owner deliver clear title to our units to XXXX at closing, which is currently scheduled to occur on XXXX XXXX, 2016. 

In the case of my unit, the good news is that my unit 's 5.11 % share of the net proceeds of sale will generate approximately {$200000.00} -- all of which will be paid directly to you -- which is substantially more than what could possibly have been generated in a conventional private sale of my unit. However, the bad news is that approximately {$210000.00} will not be enough to fully pay off my mortgage with you, even though I will not be receiving any money from the sale of my unit. 

The Illinois Condominium Property Act contemplates that all lenders release their liens upon payment of 100 % of the net proceeds of sale in a Section 15 transaction, even if the net proceeds of sale are not sufficient to pay off the entire mortgage debt. Therefore, I am notifying you of your obligation to provide a mortgage payoff letter and release of your mortgage lien for my unit 's share of the net proceeds of sale, so my unit can be sold as part of the Section 15 bulk sale of all XXXX XXXX units on XXXX XXXX, 2016. 
The lender has refused to release the mortgage and they continue to add on late fees and other fees every month. I believe they are doing this to increase the amount of deficiency that I will owe. My question is do I have any recourse in regards to them not releasing the mortgage. The mortgage company HSBC 's lawyer advised them to settle and they still refuse. This is a clear violation of The Illinois Condominium Act. I would like to file a complaint and to pursue legal action. Can you please advise me on my options? Thanks!