In Illinois, no particular notification to the mortgagor is needed before commencing a mortgage foreclosure suit connecting to business residential or commercial property and a number of the rules planned to assist keep homeowners in their homes do not apply. But what about the odd scenario where an otherwise industrial residential or commercial property is utilized by the mortgagor as a primary home? In a cautionary tale for foreclosing lending institutions, the Appellate Court of Illinois, First District, in Banco Popular The United States And Canada v. Gizynski, 2015 IL App (1st) 142871, just recently held that where a specific mortgagor utilizes a business residential or commercial property as his or her primary residence, the lending institution is needed to provide the mortgagor with the notices needed under the Illinois Mortgage (IMFL) governing residential foreclosures. Thus, even if the mortgaged genuine estate was never planned to be utilized as a home or has business qualities, a loan provider will not be saved from the IMFL's property notice requirements.

In Gizynski, while the mortgagor listed the address of the mortgaged residential or commercial property in the Gizynski case as his house, the residential or commercial property was consisted of a total of four buildings, three of which were utilized for strictly business purposes. Given this, Banco Popular North America submitted its mortgage foreclosure grievance as a business foreclosure and without providing the mortgagor any of the notices required by the IMFL for domestic foreclosures. The bank subsequently submitted a motion to select a receiver for the mortgaged residential or commercial property, which recognized the building that the mortgagor lived in as having a storage/warehouse location in the back, with 2 floorings constructed as workplaces with cooking area locations that were presently inhabited as homes.

Gizynski filed a motion to dismiss the bank's grievance, declaring that the mortgaged residential or commercial property fulfilled the statutory definition of "property real estate" consisted of in section 15-1219 of the IMFL, and therefore, no foreclosure action could be instituted without the bank first mailing the notification required by the IMFL. The IMFL's meaning of "domestic property" consists of structures with 6 or less "single household residence units," where one of the units is occupied by the mortgagor as his principal home. In assistance of his argument, Gizynski sent an overall of nine affidavits, including 4 from other residential residents of the structure and entrepreneur who rented workplace in the structure. In addition, Gizynski also sent files from the tax assessor's office revealing that his property owner's exemption had been applied to the subject residential or commercial property.
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The trial court found Gizynski's arguments unpersuasive no fewer than 5 times when it (1) approved the bank's movement to appoint a receiver, discovering that the residential or commercial property was business