Home / News / Foreclosure / Illinois Announces $345M Mortgage Assistance Program for Unemployed
Print This Post Print This Post

Illinois Announces $345M Mortgage Assistance Program for Unemployed

Illinois Governor Pat Quinn announced a program last week that he says will help approximately 15,000 homeowners threatened by foreclosure.

[IMAGE]

The ""Illinois Hardest Hit program"":http://www.IllinoisHardestHit.org utilizes $345 million in federal funds to support families who are having trouble making their mortgage payments due to unemployment or underemployment.

""The economic downturn has left too many Illinois families at risk of losing their homes,"" Governor Quinn said. ""Everyone suffers when a home goes into foreclosure. The Illinois Hardest Hit program will help keep families in their homes, help them regain economic stability, and keep our communities strong.""

The program allows eligible participants to receive up to $25,000 over 18 months as a 10-year loan to keep mortgages current and make ongoing payments, as well as cover fees and penalties for delinquency. The loan is forgiven over the last five years of the 10-year term and carries zero interest.

[COLUMN_BREAK]

Funds for the program are supplied by the U.S. Department of the Treasury. Illinois is among 18 states and Washington, D.C. that received funding for the program earlier this year.

The Illinois Hardest Hit program will be administered by the ""Illinois Housing Development Authority"":http://www.ihda.org (IHDA).

""The best way to stabilize our neighborhoods is to prevent foreclosures before they happen,"" said Mary Kenney, IHDA executive director. ""This program will make a difference in people's lives and in our communities.""

Program applicants will be matched with a local review agency that will answer questions, pre-screen applicants for eligibility, and assist homeowners in preparing the application and assembling the required supporting documentation.

To be eligible for the program, households must have a documented income reduction of at least 25 percent due to unemployment or underemployment through no fault of their own, and household income must be at or below 120 percent of the area median income.

In addition, the principal loan balance of the mortgage must not be more than $500,000, household liquid assets cannot exceed three months of mortgage payments, and homeowners must carry a fixed- or adjustable-rate loan. Negative amortization or interest-only loans are not eligible.

Applicants must not have been convicted of a mortgage-related felony in the last 10 years.

Governor Quinn has also championed an initiative that uses $100 million in federal Hardest Hit funds to form public-private partnerships to modify loans to affordable levels.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
x

Check Also

Senate Hearing Tackles National Flood Insurance Program Reauthorization

Senate Banking Committee Chair Sharrod Brown recently held a hearing to discuss the future of the National Flood Insurance Program, featuring a panel of experts highlighting the many repercussions of an expiration in the program.