Program Offers Homeowners Foreclosure Assistance in Illinois

Article excerpt

Byline: Affordable Housing Corporation of Lake County submission

The state of Illinois and the U.S. Department of the Treasury are working together to assist 15,000 Illinois homeowners struggling to pay their mortgage.

The Illinois Hardest Hit Fund will provide families facing foreclosure with some much-needed breathing room while they get back on their feet.

In Lake County, residents will work with the Affordable Housing Corporation of Lake County, a nonprofit HUD-certified agency, to obtain free guidance and loan coordination services.

Eligible participants of the Illinois Hardest Hit Fund may receive up to $25,000 as a 10-year loan to bring their mortgage current, and to assist with ongoing monthly payments for up to 18 months. The loan is forgiven over the last five years of the 10-year term and carries no interest.

Eligibility criteria includes, but is not limited to:

* Household has experienced a 25 percent reduction in income due to unemployment or underemployment through no fault of their own

* Gross household income does not exceed 120 percent of area median income ($89,750 for a family of four).

* Principal loan balance is less than $500,000. …