Update to Illinois Grace Period Notice Needed for Residential Foreclosures

Illinois law requires a Grace Period Notice (GPN) be sent to the mortgagor(s) prior to commencing an action to foreclose a mortgage secured by residential real estate.¹  The GPN must include the date the notice was mailed, be headed in bold 14-point type, "GRACE PERIOD NOTICE", and include the Illinois Department of Financial and Professional Regulation's current consumer hotline number and website.²  The GPN must also include the telephone number, fax number and mailing address of the mortgagee.³  Furthermore, the GPN must state the following in 14-point type:

YOUR LOAN IS MORE THAN 30 DAYS PAST DUE.  YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY.  IT MAY BE IN YOUR BEST INTEREST TO SEEK APPROVED HOUSING COUNSELING.  YOU HAVE A GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS NOTICE TO OBTAIN APPROVED HOUSING COUNSELING.  DURING THE GRACE PERIOD, THE LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU.  YOU MAY BE ENTITLED TO AN ADDITIONAL 30-DAY GRACE PERIOD IF YOU OBTAIN HOUSING COUNSELING FROM AN APPROVED HOUSING COUNSELING AGENCY.  A LIST OF APPROVED COUNSELING AGENCIES MAY BE OBTAINED FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION.⁴

Sending the GPN means depositing it into the U.S. mail, first-class postage prepaid, in an envelope addressed to the mortgagor at the common address of the residential real estate securing the mortgage.⁵  

Recently, the Illinois Department of Financial and Professional Regulation's consumer hotline number changed.  The previous number is no longer in service.  The new consumer hotline number is (844) 769-1713.  

The new consumer hotline number should be included on all future GPNs.  Failure to include the updated consumer hotline number could result in challenges to the validity of the GPN.  If the GPN is determined to be invalid, a pending foreclosure case will have to be dismissed and re-filed after a valid GPN is sent to the mortgagor. 

¹ See 735 ILCS 5/15-1502.5(b)
² See id.
³ See id.
⁴ See id.
⁵ See 735 ILCS 5/15-1502.5(c)