propertyrightsresearch.org
In Illinois, no particular notification to the mortgagor is required before commencing a mortgage foreclosure match associating with commercial residential or commercial property and a lot of the guidelines intended to help keep homeowners in their homes do not use. But what about the odd scenario where an otherwise commercial residential or commercial property is utilized by the mortgagor as a main house? In a cautionary tale for foreclosing lending institutions, the Appellate Court of Illinois, First District, in Banco Popular North America v. Gizynski, 2015 IL App (1st) 142871, recently held that where an individual mortgagor uses a business residential or commercial property as his or her primary house, the loan provider is needed to supply the mortgagor with the notices required under the Illinois Mortgage Foreclosure Law (IMFL) governing property foreclosures. Thus, even if the mortgaged real estate was never intended to be used as a house or has commercial characteristics, a lender will not be conserved from the IMFL's domestic notification requirements.
knightsbridge.net
In Gizynski, while the mortgagor listed the address of the mortgaged residential or commercial property in the Gizynski case as his residence, the residential or commercial property was made up of an overall of four buildings, three of which were utilized for strictly industrial functions. Given this, Banco Popular North America submitted its mortgage foreclosure complaint as a business foreclosure and without providing the mortgagor any of the notices needed by the IMFL for property foreclosures. The bank subsequently submitted a movement to designate a receiver for the mortgaged residential or commercial property, which identified the structure that the mortgagor resided in as having a storage/warehouse area in the back, with two floorings developed as workplaces with kitchen area locations that were presently occupied as homes.

Gizynski submitted a motion to dismiss the bank's problem, declaring that the or commercial property satisfied the statutory meaning of "property realty" contained in area 15-1219 of the IMFL, and therefore, no foreclosure action could be set up without the bank initially sending by mail the notice required by the IMFL. The IMFL's meaning of "residential realty" includes structures with six or fewer "single family dwelling units," where among the units is occupied by the mortgagor as his principal residence. In assistance of his argument, Gizynski sent an overall of 9 affidavits, including 4 from other domestic occupants of the structure and service owners who rented workplace in the building. In addition, Gizynski likewise sent documents from the tax assessor's workplace showing that his homeowner's exemption had been used to the subject residential or commercial property.

The trial court found Gizynski's arguments unpersuasive no less than five times when it (1) granted the bank's movement to select a receiver, discovering that the residential or commercial property was business