Illinois Homeowners Emergency Assistance Program

Effective this last summer, the Illinois Housing Development Authority was granted the right to assist qualified Illinois homeowners with their mortgage payments. Under the Illinois Homeowners Emergency Assistance Program, the Illinois Housing Development Authority may grant up to three mortgage payments to qualified homeowners in need.

The mortgage payments are for first lienholders only. This means that if you are looking for mortgage assistance towards secondary financing or a home equity line on your home, you are not eligible. Payments will be made directly to your lender, and cannot exceed $6000 or three of your regular mortgage payments, whichever is less. Funds can be applied towards principal, interest, taxes, and mortgage insurance. However, funds for this program are limited to a total of $3,000,000, and the program is only available until December 31, 2010.

So how do you qualify? Well, you must meet a number of criteria, such as:

1) The mortgage must be for your primary residence.
2) The bank must have commenced foreclosure proceedings, and be willing to stop and renegotiate the mortgage with you if the Illinois Housing Development Authority notifies the bank that you may be eligible for financial assistance from them.
3) You must attend HUD-certified counseling.
4) You must be a resident of Illinois.
5) You must agree to indemnify the Illinois Housing Development Authority from any damage that results from the payments they make to your lender.
6) Your household income must be less than 120% of the median income in your area.

If you feel you might qualify under this program, act now. Funds are limited!