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 Code of Civil Procedure requires that “if a mortgage secured by residential real estate becomes delinquent by more than 30 days the mortgagee shall send via U.S. mail a notice advising the mortgagor that he or she may wish to seek approved housing counseling.” 735 ILCS 5/15-1502.5(c).

We believe that this notice requirement in Section 15-1502.5 of the Code of Civil Procedure would apply to both commercial-purpose loans and consumer-purpose loans. The notice requirement applies to any “mortgage secured by residential real estate.” 735 ILCS 5/15-1502.5(b), (c). “Residential real estate” is defined as “any real estate, except a single tract of agricultural real estate consisting of more than 40 acres” which is occupied as a principal residence. 735 ILCS 5/15-1219. If the mortgagor is a corporation, the notice requirement would apply only if the real estate is occupied as a principal residence “by persons owning collectively at least 50 percent of the shares of voting stock of such corporation or by a spouse or descendants of such persons.” Id.