As we are too well aware, massive foreclosures have hurt countless families and decimated the housing market while undermining the economy and numerous communities. Hopefully this latest program will provide short term financial support for some deserving families facing economic hardship so that they may be saved the pain and instability of an unnecessary foreclosure.
My understanding is that once the loan is accepted, the government will step in and directly pay the mortgage payments; the borrowers will then begin repaying the government what they can afford. The loan from the government will be repaid over ten years. The maximum benefit allowed will be $25,000.
I know government programs often become misdirected, complicated and wasteful but thus far this program seems well defined and limited.
Other conditions:
- Property must be located in Illinois
- Households must have a documented income reduction of 25% due to unemployment or underemployment through no fault of their own
- Household income must be at or below 120% of the area median income
- Principal loan balance must not be more than $500,000
- Household liquid assets cannot exceed 3 months of mortgage payments
- Property must be the primary and only residence of all borrowers/owners
- Property can be a 1-4 unit building, providing the household resides in one unit
- Homeowners must carry a fixed or adjustable rate loan. Interest-only or negative amortization loans are not acceptable
- Current servicer of the mortgage must agree to accept payments
- Applicant(s) must not have been convicted of a mortgage-related felony in the last ten years
- Available HHF assistance is sufficient to cure the delinquency and make required forward payments, if necessary to satisfy program guidelines.
https://www.illinoishardesthit.org/
Randy Budreau