Foreclosure Prevention

Hardest Hit Fund. Rock Island Economic Growth Corporation serves as an approved Housing Counseling provider for the new “Hardest Hit Fund” program (HHF).  HHF is a program designed to assist in making temporary mortgage payments for Illinois homeowners who are unemployed or underemployed, but are working to regain sufficient income to keep their homes.  The program is administered by the Illinois Housing Development Authority and is funded through recaptured Troubled Asset Relief (TARP) dollars by the U.S. Department of the Treasury.

HHF provides two types of assistance for homeowners:

1.  Reinstatement assistance to pay mortgage arrearages, fees, and penalties in full, and
2.  Monthly mortgage payment assistance to pay 100% of the mortgage payment owed to the servicer for up to 18 months while the household makes monthly contribution payments to the Illinois Housing Development Authority during their enrollment in the program.   

A full list of the program criteria and eligibility are included on the Hardest Hit Fund website at www.IllinoisHardestHit.org.  Basic eligibility criteria include:

 ·       Present income is at or below 120% Area Median Income

·         A minimum 20% reduction in income due to unemployment or underemployment

·         Proof that loss of income was involuntary

·         Must have fee simple title ownership of the property

·         Present mortgage payments are above 31% of monthly income

Persons interested in applying for assistance to the Hardest Hit Fund must first go directly to the website at www.IllinoisHardestHit.org.   The online application is found there along with additional information on eligibility and program requirements. 

Help for Homeowners workshops are designed to help struggling homeowners who want to stay in their homes navigate the complicated and stressful situation of a delinquent mortgage. While the workshops do not offer a quick fix, they do provide homeowners with the following:

Knowledge about the foreclosure process. Often the most stressful part of a foreclosure or being behind on a mortgage payment, is not knowing what will happen next. These workshops will help the borrower understand the process and possible alternatives to foreclosure.

Knowledge about the language being used. The workshops will provide a glossary of lending terminology. Terms like foreclosure, short sale, forbearance, deed in lieu, and modification can be very confusing to the typical homeowner. The workshop will help explain the meaning, and the ramifications of common mortgage options.

Information about who to contact at the lending institution, and how to speak with the lender, in order to get the most positive results.

Budgeting information and handouts. Most lenders will require that the delinquent borrower submit a budget, before discussing possible changes in their loan terms.

Information about the National “Making Home Affordable” modification plan. The workshop will help the borrower determine if they are eligible for the national “Making Home Affordable” modification plan, and how to submit an application.

The opportunity to speak with others who may be going through similar situations. Knowing that they are not alone can be a great help in alleviating some of the stress involved in a delinquent mortgage situation.

Information about common “mortgage rescue” scams.

Information regarding various resources for the borrower to contact for future one on one counseling.
An opportunity to ask questions of local people, with experience in the lending industry.

For a list of Help for Homeowners workshops and more information click here.