Governor Pat Quinn has recently signed a new bill into law that will protect Illinois homeowners from foreclosure by preventing a lender from selling a home while the homeowner is applying for the federal mortgage assistance program.
“Preventing foreclosures is one of the most essential things we can do to keep our communities strong and our economic recovery moving forward.” Governor Quinn said. “More importantly, it’s about helping Illinois families stay in their homes and protect what they’ve worked so hard to achieve.”
The new legislation extends a current law that allows families that have applied for a loan modification under the federal Home Affordable Modification Program (HAMP) to stop the lender from selling their home.
The Home Affordable Modification Program (HAMP) was created in 2009 under the Obama administration, and allows qualified homeowners to modify their mortgage payments to 31 percent of their income. The program is meant to help lower homeowners monthly mortgage payments so that they are more affordable and sustainable.
In 2010 Governor Quinn signed a law that allowed homeowners to move to block a judicial sale if they could prove that they had applied for a federal HAMP modification and that the property was sold in violation of the program’s terms. The new law, which takes effect immediately, extends Illinois law to match the federal HAMP application deadline of December 31, 2015, which will provide homeowners even more time to save their home from being foreclosed on.
With the new law in place Governor Quinn is urging Illinois families facing financial hardships to apply for a loan modification through the federal Home Affordable Modification Program. Those looking for help applying for a HAMP mortgage modification are urged to use the Illinois Foreclosure Prevention Network.
The Illinois Foreclosure Prevention Network (IFPN) was created in February of 2012 as a way to connect struggling homeowners with all the available assistance, resources, and knowledge on how to keep their homes.
The IFPN is a free resource with important information and help that includes access to counseling services, legal advice, federal mortgage assistance programs, tips on how to avoid mortgage fraud, and more.
“Illinois families must have access to the tools they need to protect their home.” Governor Quinn said. “More than one million families have received help through the Illinois Foreclosure Prevention Network, and we want to make sure even more homeowners can remain in their homes for the long term.”
Through the IFPN homeowners can apply for a HAMP loan modification. Already, around 47,000 Illinois families have received permanent loan modifications through HAMP, allowing them to stay in their home.
“Governor Quinn understands that linking homeowners with crucial assistance stabilizes communities by preventing foreclosures before they happen.” Mary R. Kenney, Illinois Housing Development Authority (IHDA) Executive Director, said. “The median monthly savings for Illinois homeowners in active permanent mortgage modifications under HAMP is about $570 – and now more families statewide can apply for lower monthly payments.”
Anyone struggling to pay their mortgage or is facing foreclosure is urged to reach out to the Illinois Foreclosure Prevention Network sooner rather than later by visiting their website at www.keepyourhomeillinois.org or by calling their hotline at 1-855-KEEP-411.