Please note that this answer discusses the Illinois grace period notice requirement, which expired on July 1, 2016, pursuant to a sunset provision. Please see 735 ILCS 5/15-1502.5.

The new RESPA servicing rules prohibit servicers from initiating a foreclosure action until “a borrower’s mortgage loan obligation is more than 120 days delinquent.” 12 CFR 1024.41(f)(1)(i). The rules do not define “delinquency,” and so we are unable to provide guidance on exactly when the 120-day delinquency period should begin running. We contacted the CFPB about this omission, and a CFPB attorney informed us that the Bureau will be looking at defining “delinquency” in 2014. Beyond that, the CFPB attorney’s informal guidance was to look to both state law and the loan agreement to define “delinquency” in each case.

Your loan agreements probably define an event of “delinquency,” but if not, you may wish to consider looking at Illinois law. There is a definition of “delinquent” in the Illinois Code of Civil Procedure that imposes a notice requirement after a mortgage becomes delinquent by more than thirty days. It defines “delinquent” as “past due with respect to a payment on a mortgage secured by residential real estate.” 735 ILCS 5/15-1502.5(a).