Nov. 13–DANVILLE (Source: By April Evans, Commercial-News, Danville, Ill.) - Homeowners who feel they may be in a stare-down with foreclosure might just have a new option at their side.
The Illinois Hardest Hit Program has had $345 million in federal funds funneled its way and is expected to help 15,000 Illinois homeowners who face foreclosure to help meet their mortgage obligations and stay in their houses.
The Hardest Hit Fund was established federally in February 2010, with funds being awarded to states based on their unemployment rates and steep home declines since the housing market downturn.
There are two types of assistance available within the program. Reinstatement assistance for overdue payments, fees and penalties in full; and monthly mortgage payment assistance to pay the entire mortgage owed for up to 18 months as a 10-year loan while the household makes contribution payments to the Illinois Housing Development Authority, with maximum assistance at $25,000. The loan is forgiven during the final five years and carries zero interest.
Vermilion County was identified as an area of high economic distress that allows for residents here to qualify for $25,000 of assistance, rather than a lower $20,000 threshold as in some other counties.
Some of the criteria to be eligible for enrollment in the program includes home ownership in Illinois; an income reduction of 25 percent through unemployment or underemployment through no fault of their own; total household income at or below 120 percent of the area median income; and household liquid assets must not exceed three months of mortgage payments.
Homes considered are a single family home, a condominium or townhome, a manufactured home permanently affixed to its foundation on land owned by the applicant, or a two-, three- or four-unit dwelling that is occupied by the participant.
While the process varies, once an application is fully submitted it may take at least 90 days for it to be processed. Applicants should continue to pay their mortgage while their application is being processed.
Illinois was among 18 states and Washington, D.C., that received funding for the program.
There is no fee for homeowners to apply to the program, but the process must be completed online by filling out an application at http://www.illinoishardesthit.org. More information about the program, the application process and its eligibility criteria can be found there.
On the web
Visit http://www.illinoishardesthit.org to apply for the program and for more information about the program.
(c)2011 the Commercial-News (Danville, Ill.)
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A service of YellowBrix, Inc. Publication date: 2011-11-13
Source: By April Evans, Commercial-News, Danville, Ill.