Illinois Hardest Hit Program Could Help You!

There is yet another program to assist Illinois homeowners facing foreclosure.  Just announced this week, the new program is known as the Illinois Hardest Hit program.  It aims to help about 15,000 Illinois families.  The federal goverment is funding the program with $345 million. 

In order for your family to qualify, you must meet the following criteria:

1)     You must have had at least a 25% drop in your household income, either due to unemployment or reduced employment (i.e. not being able to work as many hours as you are available), through no fault of your own.

2)     Regardless, your family income can be slightly higher than the average income in your area, but no greater than 120% of the median income in your area.

3)     The subject property must be in Illinois.

4)     The property must be your primary and only residence.  Additionally, if there are other people named on the mortgage, the property must be their primary and only residence.

5)     Your current cash and other liquid assets cannot be greater than three months worth of mortgage payments.

6)     The principal balance of your loan cannot be greater than $500,000.

7)     The subject property must be a house, townhome, or condominium.  If the property is a multi-unit apartment building, it can still qualify, so long as there are four units or less, and your entire household lives in only one of the units.

8)     Your loan must NOT be an interest-only loan or a negative amortization loan.

9)      You must not have been convicted of a mortgage-related felony in the last ten years.

10)    Your lender must agree to accept payment from the Illinois Hardest Hit program.

If you qualify for the program, you can get up to $25,000 in assistance (depending on where you’re located) spread over an eighteen-month period.  This $25,000 will be used entirely towards payment of your monthly mortgage.  While the money is technically a loan, the entire loan can be forgiven after five years if you follow all of the program’s requirements and maintain eligibility.  In lieu of receiving monthly mortgage payment assistance, you may qualify for a one-time payment to bring your mortgage current.

If you live in Illinois and are facing foreclosure, consider applying to the Illinois Hardest Hit program for assistance!