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Chicago Bankruptcy Lawyer > Blog > Bankruptcy > Struggling to Pay Your Mortgage In Illinois? New Statewide Program Could Help

Struggling to Pay Your Mortgage In Illinois? New Statewide Program Could Help

There are countless reasons why people fall behind on their mortgage payments and are forced to face the possibility of losing their home to foreclosure. Some of these reasons are due to decisions that the borrower makes while others are simply beyond their control. However, help is on the way as Illinois is reopening a mortgage assistance program that is aimed at helping qualifying homeowners who experienced a hardship event through no fault of their own. Through the Illinois Hardest Hit program many homeowners within the state who have suffered a hardship that resulted in their household income being reduced by at least 15 percent can apply to receive financial assistance.

Illinois Hardest Hit Program

The Chicago Tribune reports that under the Illinois Hardest Hit Program qualified applicants will be granted five-year forgivable loans in order to help them get through their tough financial time and avoid foreclosure. Under the program applicants can also receive as much as $35,000 in assistance in order to bring their mortgage current. Homeowners in Illinois who have not previously received Illinois Hardest Hit assistance can apply for the program online starting August 1, 2016.

Specific details about the Illinois Hardest Hit Program can be found on their website, but some of the main qualifying events and eligibility criteria are outlined below.

Qualifying Hardship Events: The applicant must have experienced a reduction in their income due to a qualifying hardship event that occurred both after January 1, 2010 and after they purchased their property. Additionally, the hardship event must have occurred through no fault of the applicant. Examples of qualifying hardships include:

  • – Unemployment or underemployment,
  • – Loss of income due to a disability or illness,
  • – Death of a spouse, or
  • – Divorce

Eligibility Criteria: In order to qualify for assistance under the Illinois Hardest Hit Program the applicant must meet the following criteria:

  • – The property is located in Illinois,
  • – The property is owner occupied,
  • – The property is either a single family home, a multi-family home with less than five units, a townhome, a condominium, or a mobile home on a permanent foundation,
  • – Household experienced at least a 15 percent reduction in income,
  • – Household income does not exceed 120 percent of the Area Median Income,
  • – The household’s liquid assets do not total more than $17,500,
  • – Loan must be secured by a 1st lien position,
  • – The unpaid principal balance on the loan can not be more than $500,000,
  • – The loan must be either fixed rate or adjustable,
  • – The lender must be participating in the HHF program, and
  • – The applicant must not have been convicted of a mortgage related felony in the last 10 years.

Need Legal Advice?

If you are facing foreclosure or are interested in learning about debt relief options in Illinois contact the experienced foreclosure defense lawyers at the Bentz Holguin Law Firm, LLC. Our lawyers would be happy to sit down with you during a free consultation to discuss your legal options. Contact our Chicago office today at 312-647-2116.

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