Foreclosure Prevention Partners
IHDA partners with several community housing organizations to offer foreclosure counseling services to struggling homeowners and temporary financial assistance to homeowners who have experienced a reduction in income. Our partners are integral to the work we do to help Illinois homeowners keep their homes. Our foreclosure prevention programs are:
In 2010, the Illinois Legislature passed Senate Bill 3739 (Public Act 096-1419) allowing for the creation of a statewide Foreclosure Prevention Program. The funding is provided by a new $50 fee for plaintiffs filing a foreclosure complaint, which will go toward funding foreclosure prevention efforts.
Pursuant to emergency rules, and as authorized by Section 7.30(a) of the Illinois Housing Development Act (20 ILCS 3805/7.30(a)), the Authority will establish and manage the Illinois Foreclosure Prevention Program. The Program will do a variety of items, including the dissemination of information statewide to meet the current need to expand awareness and access to housing resources to the general population. The Program will raise awareness of all the options available to struggling homeowners -- local, state and federal -- and provide a single source for connecting citizens to the array of foreclosure prevention efforts and resources in Illinois. The Program will allow for a toll-free help line/call center, website, and management/marketing of statewide events.
The U.S. Treasury Department 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. The Illinois Hardest Hit Fund® is currently assisting families across the state by bringing their mortgage current and reducing their mortgage payment for up to 18 months.
Housing Agency Participation
IHDA relies on a statewide network of housing, development and community action agencies participating as sponsors or “review agencies” to provide eligibility screenings. Sponsor screening includes reviewing homeowner’s documents, facilitating a tract search and recording loan documents. Participating agencies can receive up to $950 for each funded application.
Download a sponsor application package if your agency is interested in partnering with IHDA under the Illinois Hardest Hit Fund®.
If you have any questions about becoming an agency partner, contact Jan van der Woerd at 312-338-0544 or firstname.lastname@example.org.
IHDA will make full mortgage payments on behalf of the homeowner directly to the servicer for up to 18 months. Homeowners that are current or delinquent on their first mortgage can participate and funds can be used to pay arrearages before monthly mortgage payments commence. The maximum amount of assistance IHDA will provide to a household is $20,000 or $25,000 depending on location. In order to receive funds for a borrower, a servicer must complete legal and financial documentation before any payments can be made.
Download a servicer application package.
If you have any questions about becoming a servicer under the Illinois Hardest Hit Fund®, contact our Servicer Communications team at email@example.com.
IHDA is required to submit progress reports to the U.S. Treasury Department on a quarterly basis. Access the Illinois Hardest Hit Fund® reports.
If you are a homeowner looking for help, go to the official website to learn more and to apply free of charge.
National Foreclosure Mitigation Counseling Program (NFMC)
The NFMC program provides funds to Housing Finance Agencies, such as IHDA, and HUD-approved intermediaries and other counseling organizations to provide foreclosure intervention and loss mitigation counseling to struggling homeowners.
The program is administered through a competitive application process by NeighborWorks® America within guidelines defined by Congressional legislation. IHDA applied for grant funds in order to enable non-profit counseling agencies across Illinois to provide free foreclosure intervention and loss mitigation counseling to homeowners in danger of foreclosure.
If you have any questions about becoming an NFMC partner, please contact Amber Lockwood at firstname.lastname@example.org or (312) 836-7340.
If you are a homeowner struggling to pay your mortgage, What To Do When Facing Foreclosure in the Homebuyer/Homeowner section has more details.