We have a loan for commercial property that houses a business. Recently, we have reason to think the owners (loan borrowers) are now living there....possibly primarily, due to financial problems. In fact, the loan is delinquent. We are concerned about foreclosure in light of the 120-day delinquency issues, since this is COMMERCIAL property. How does this affect the situation? What officially defines Primary Residence? Anyone have any experience with this situation? Advice? Thanks!

Take a step back. If the loan was not subject to TILA and RESPA when it was booked, it doesn't change its stripes when it goes delinquent. If this was not a RESPA loan when you made it, it's not a RESPA loan now.

What about the reverse? It was a RESPA loan when we made it but the borrower has since moved out and it isn't his primary residence. Does the 120 day rule still apply?