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15-1505.5.Payoff demands.

Article XV. Mortgage Foreclosure · Part 15. Judicial Foreclosure Procedure · Last amended 2009 · Last verified July 20, 2026

In one sentenceSection 15-1505.5 requires a mortgagee to deliver an accurate payoff demand statement within 10 business days of a mortgagor's written request, with a $500-or-actual-damages remedy for willful noncompliance, and it doesn't apply to notices of intent to redeem under Section 15-1603(e).

Full Text of 735 ILCS 5/15-1505.5

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(a) In a foreclosure action subject to this Article, on the written demand of a mortgagor or the mortgagor's authorized agent (which shall include the mortgagor's name, the mortgaged property's address, and the mortgage account or loan number), a mortgagee or the mortgagee's authorized agent shall prepare and deliver an accurate statement of the total outstanding balance of the mortgagor's obligation that would be required to satisfy the obligation in full as of the date of preparation ("payoff demand statement") to the mortgagor or the mortgagor's authorized agent who has requested it within 10 business days after receipt of the demand. For purposes of this Section, a payoff demand statement is accurate if prepared in good faith based on the records of the mortgagee or the mortgagee's agent. (b) The payoff demand statement shall include the following:
(1) the information necessary to calculate the payoff amount on a per diem basis for the lesser of a period of 30 days or until the date scheduled for judicial sale;
(2) estimated charges (stated as such) that the mortgagee reasonably believes may be incurred within 30 days from the date of preparation of the payoff demand statement; and
(3) the loan number for the obligation to be paid, the address of the mortgagee, the telephone number of the mortgagee and, if a banking organization or corporation, the name of the department, if applicable, and its telephone number and facsimile phone number. (c) A mortgagee or mortgagee's agent who willfully fails to prepare and deliver an accurate payoff demand statement within 10 business days after receipt of a written demand is liable to the mortgagor for actual damages sustained for failure to deliver the statement. The mortgagee or mortgagee's agent is liable to the mortgagor for $500 if no actual damages are sustained. For purposes of this subsection, "willfully" means a failure to comply with this Section without just cause or excuse or mitigating circumstances.
(d) The mortgagor must petition the judge within the foreclosure action for the award of any damages pursuant to this Section, which award shall be determined by the judge.
(e) Unless the payoff demand statement provides otherwise, the statement is deemed to apply only to the unpaid balance of the single obligation that is named in the demand and that is secured by the mortgage or deed of trust identified in the payoff demand statement.
(f) The demand for and preparation and delivery of a payoff demand statement pursuant to this Section does not change any date or time period that is prescribed in the note or that is otherwise provided by law. Failure to comply with any provision of this Section does not change any of the rights of the parties as set forth in the note, mortgage, or applicable law.
(g) The mortgagee or mortgagee's agent shall furnish the first payoff demand statement at no cost to the mortgagor.
(h) For the purposes of this Section, unless the context otherwise requires, "deliver" or "delivery" means depositing or causing to be deposited into the United States mail an envelope with postage prepaid that contains a copy of the documents to be delivered and that is addressed to the person whose name and address are provided in the payoff demand. "Delivery" may also include transmitting those documents by telephone facsimile to the person or electronically if the payoff demand specifically requests and authorizes that the documents be transmitted in electronic form.
(i) The mortgagee or mortgagee's agent is not required to comply with the payoff demand statement procedure set forth in this Section when responding to a notice of intent to redeem issued under Section 15-1603(e).
End

Plain-English Summary

A mortgagor who wants to know exactly what it takes to pay off the loan can make a written demand -- including the mortgagor's name, the property address, and the loan or account number -- and the mortgagee must prepare and deliver an accurate payoff demand statement within 10 business days of receiving it. The statement counts as accurate if it's prepared in good faith from the mortgagee's own records.

The statement itself must show the per diem payoff calculation for the lesser of 30 days or the time remaining until the scheduled judicial sale, any estimated charges the mortgagee reasonably expects within that 30-day window (labeled as estimates), and contact information -- the loan number, the mortgagee's address and phone number, and, for a bank or corporation, the responsible department's phone and fax numbers. The mortgagor gets the first statement free, and unless it says otherwise, the statement covers only the single obligation named in the demand.

Noncompliance has teeth: a mortgagee or its agent who willfully fails to prepare and deliver an accurate statement within the 10-business-day window is liable for actual damages, or $500 if there are none, with "willfully" meaning noncompliance without just cause, excuse, or mitigating circumstance. The mortgagor petitions the judge in the foreclosure case for that award. None of this changes any deadline set by the note or by law, and the payoff demand procedure doesn't apply when the mortgagee is instead responding to a notice of intent to redeem under Section 15-1603(e).

Frequently Asked Questions

How quickly must a mortgagee deliver a payoff demand statement?

Within 10 business days after receiving the mortgagor's written demand, under Section 15-1505.5(a).

What period does the payoff demand statement need to cover?

The per diem payoff amount for the lesser of 30 days or the time until the scheduled judicial sale, plus any estimated charges expected within that period.

What happens if a mortgagee willfully fails to provide an accurate payoff statement in time?

It is liable to the mortgagor for actual damages, or $500 if none are sustained, and the mortgagor must petition the judge in the foreclosure case for the award.

Is the first payoff demand statement free?

Yes. Section 15-1505.5(g) requires the mortgagee or its agent to furnish the first statement at no cost to the mortgagor.

Does this Section apply to a notice of intent to redeem?

No. Subsection (i) states the mortgagee is not required to follow this payoff demand procedure when responding to a notice of intent to redeem under Section 15-1603(e).

Amendment History

(Source: P.A. 95-961, eff. 1-1-09.)

Source & verification. Section text and amendment history are reproduced verbatim from the Illinois Compiled Statutes, published by the Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026. · Official source
Also known as: illinois mortgage payoff demand statement10 business days payoff statement illinoisforeclosure payoff amount request illinoisfree payoff statement illinois