New Source of Funding for Foreclosure Mediation

Tax exempt organizations who qualify and who are willing provide foreclosure mediation services may receive a portion of the funds obtained through a $25 billion settlement earlier this year with five large banks accused of “robo-signing” foreclosure documents.  $3 million have been allocated to fund foreclosure mediation programs in Illinois, specifically for counties that do not currently have such programs.

Increased and better foreclosure mediation may help homeowners avoid foreclosure, and instead work out a loan modification, short sale, or other acceptable solution.

Interested tax-exempt organizations may apply for a multi-year grant by August 15.  The Illinois Attorney General’s office can provide details to interested organizations.