Illinois foreclosure counseling programs

Millions of dollars in federal grants are being allocated to provide free foreclosure counseling and other mortgage help for homeowners located throughout Illinois. The Illinois Housing Development Authority (IHDA) Board of Directors has approved the funds and they will be allocating the money to various agencies across the state.

The federal grant, which is being provided through the National Foreclosure Mitigation Counseling (NFMC) program, will pay for thousands of foreclosure prevention and mortgage delinquency counseling sessions across the state of Illinois. As a direct result of the money being made available across the State, almost 50 partner agencies will be able to help homeowners by offering them free counseling. Counseling has been proven to help people deal with mortgage issues and get back on track with their payments.

Mortgage and financial counseling is shown by many studies to be the most effective first step struggling homeowners can take to save their homes from the foreclosure process. In addition to the counseling, the governor established the Homeowner Protection Act which gives homeowners who are facing the foreclosure process an extra 90 days to work out a solution with their bank or lender if they enter foreclosure mediation or attend some other form of credit or housing counseling.

How does the Illinois foreclosure counseling program work

If you are one of the thousands of homeowners who are behind on your mortgage payment, if you are struggling to make your mortgage payment or if you have entered the foreclosure process you should seek help in the form of counseling immediately. Mortgage counselors can inform homeowners of various programs and resources that they may qualify for, such as President Obama’s Making Home Affordable program. They can present options to homeowners to help them get back on track. The counselor can work as a liaison between the lender, bank, or homeowner. Counselors can even educate homeowners in the complex foreclosure process. Find a counselor or housing specialist at www.findaforeclosurecounselor.org, or click here for Illinois counselors.

Just one example of how a counselor can help a homeowner with is the Making Home Affordable Program. The counselor will help the homeowner qualify for a loan modification under the federal Making Home Affordable program. If they are qualified, they can have their mortgage payments reduced to as low as 31 percent of their gross monthly income, possibly saving them hundreds of dollars a month on their monthly mortgage payment. They can also help them waive fees and penalties.

 

 

 

 

 

 

 

 

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