2 Government Programs Help You Modify Your Home Loan; If You Qualify, “Illinois Hardest Hit” Even Makes Your Payments For You
by Richard Fonfrias,
J.D. Chicago’s Financial Rescue &
Fonfrias Law Group, LLC
If you are facing an Illinois foreclosure, here’s where you might get foreclosure help.
Not long ago, you were hard pressed to get any help with your house payments. But today you have realistic options:
Home loan modifications are becoming more common under two government programs – the Home Affordable Mortgage Program (HAMP) and the Home Affordable Refinance Program (HARP). In fact, some mortgage lenders have even set up their own programs, through which they will now modify your home loan.
What’s more, many mortgage lenders now offer to reduce the principal balance on your mortgage, thanks to the Attorneys General Mortgage Foreclosure Settlement.
Also – and this may be the best of all – you might benefit from “Illinois Hardest Hit”, which is offered by the Illinois Housing Development Authority (IHDA). This program offers two types of assistance:
- Mortgage reinstatement assistance to make up past-due mortgage payments, as well as fees and penalties in full.
- Monthly mortgage payment assistance – which pays 100% of your mortgage payment owed to the servicer for up to 18 months while your household makes monthly contribution to the Illinois Housing Development Authority while you’re enrolled in the program. The maximum amount of the grant is $20,000 to $25,000, depending on the county where you live.
To take part in this program, you must meet the following requirements:
- Your property must be in Illinois.
- You must be able to document a 20% reduction in your income due to unemployment or underemployment through no fault of your own.
- Your household income must be at or below 120% of the area’s median income.
- Your principal loan balance must not exceed $500,000.
- Your household liquid assets must not exceed $10,000 or $12,5000, depend on your county.
- The home must be the primary and only residence of all borrowers/owners. You must not own another home for vacation or investment anywhere in the U.S.
- The property can house a one- to four-unit building and your household must be in one of those units.
- You must currently have a fixed or adjustable rate mortgage. (Interest-only or negative amortization loans will not qualify.)
- The company that services your current mortgage must agree to accept payments.
- You (the applicant) must not have been convicted of a mortgage-related felony in the past 10 years.
- The available Hardest Hit Fund assistance in your county is enough to bring your past-due mortgage payments current – and to make at least six monthly mortgage payments going forward.
So don’t give up hope. It has been a long time coming, but now many homeowners are getting relief from their high mortgage payments.
If I can help you in any way, please call or send me an e-mail.