Illinois Hardest Hit Program

In 2010, the U.S. Department of Treasury through the Troubled Asset Relief Program (“TARP”), a U.S. Treasury managed resource dedicated to foreclosure prevention and neighborhood stabilization, approved IHDA’s plan to utilize $445 million in federal funds to assist Illinois homeowners struggling to pay their mortgages due to job loss or income reduction in the wake of the financial crisis.  Since then, IHDA has developed and implemented four programs that are funded by U.S. Treasury's Hardest Hit Funds: Emergency Loan Program, Mortgage Resolution Fund Program, the Home Preservation Program, and the Blight Reduction Program.

Homeowner Preservation Program (HPP)

Struggling homeowners who have a loan with Bank of America, BMO Harris Bank or any of the servicers listed below, you could be eligible for up to $50,000 in assistance under the Homeowner Preservation Program. HPP offers qualified homeowners a one-time principal reduction payment designed to permanently lower their monthly mortgage.

At least one household member must have a full-time job that provides a 32-hour work week or more, and/or receive unearned income such as Social Security Disability/Retirement, Retirement, or annuity. Other eligibility criteria apply.

Participating servicers are:

Bank of America Marine Bank
Banterra Bank Marquette Bank
BMO Harris Bank Midland State Bank
Central Federal Neighborhood Lending Services
CNB Bank & Trust North Side Community Federal Union
Credit Union 1 Partnership Financial Credit Union
Dovenmeuhle Mortgage Seaway
Fay Servicing Second Federal
FCB Bank South Side Community Federal Credit Union
First Midwest Bank Standards Bank
Illinois National Urban Partnership Bank

Homeowners should contact 855-873-7405 to find out if they are eligible and to start an application.

The Blight Reduction Program

For more information and applications for the Blight Reduction Program, see here.

The Illinois Hardest Hit Program Reports

IHDA is required to submit progress reports to U.S. Treasury on a quarterly basis. See here to access the Illinois Hardest Hit program reports.


If you are a homeowner looking for help, visit the Illinois Foreclosure Prevention Network (IFPN). IFPN is a one-stop, trusted and reliable source where homeowners can receive information on how to access one-on-one counseling, legal advice and financial assistance. All services are free.

If you are interested in becoming an IHDA partner under the Illinois Hardest Hit program, either as a sponsor or servicer, see the Foreclosure Prevention Partners page under the Partner section of this site.