Many Illinois homeowners are having a hard time keeping up with their mortgage payments. If you feel identified, it’s likely you’re wondering whether there’s help available. Luckily, you can take advantage of several mortgage relief options during these tough economic times.
This post aims to inform you about everything you need to know about these programs. Additionally, we will give you contact information for organizations that can help you apply for assistance. It’s not too late – there is hope! Read on to learn more.
Getting Started
To achieve mortgage relief, you must first communicate with your lender and explain your financial situation. When homeowners cannot make their monthly payments, lenders are often willing to work with them. A HUD-approved housing counselor is an excellent resource if you are unsure what to say to your lender or how to approach them.
Types of Mortgage Relief Available
There are many options available for mortgage relief in Illinois. You can get mortgage payment assistance, lower interest rates, and term modifications through a number of programs.
Mortgage Modification
Having difficulty making payments each month may qualify you for a loan modification. During a mortgage modification, you negotiate with your lender a new repayment plan that better suits your current financial situation. In some cases, you may even be able to negotiate a lower interest rate.
Forbearance
If you are experiencing temporary financial hardships, forbearance may be available to you. As a result of this arrangement, you may be able to get back on your feet financially while making reduced or no payments for a period of time.
Principal Reduction
In the event that you owe more than the value of your home, you may be able to reduce your principal. In this case, your loan balance would be reduced to reflect your home’s current market value.
Loan Refinancing
If you are having difficulty making your mortgage payments, you might be able to refinance at a lower interest rate. If you qualify, your monthly payments may be reduced to make it easier to repay your loan.
Pre-foreclosure Sale
In a pre-foreclosure sale, also called a short sale, you sell a home for less than what you still owe on the mortgage. Sale proceeds are used to pay off the debt post-sale.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure may be an option if you are unable to sell your home or reach an agreement with your lender about modifying your loan.
Mortgage Relief Programs in Illinois
Homeowner Assistance Fund (HAF)
The Illinois Homeowner Assistance Fund Program assists income-eligible homeowners facing pandemic-related hardships with direct financial assistance to prevent mortgage delinquencies, defaults, displacements, and foreclosures.
How it Works
Illinois homeowners experiencing financial hardship due to the COVID-19 pandemic may be eligible for a housing assistance grant of up to $30,000.
Eligibility Requirements
For this program to be available, you must have suffered financial hardship due to the Coronavirus pandemic after January 21, 2020.
You must also meet the following qualifications:
- The property must be located in Illinois and be your primary residence.
- Household income is equal to or less than 150% of the area median income.
- There is at least a 30-day delay in the household’s first mortgage payment. One exception is homeowners without mortgages, who are delinquent on property taxes.
How to Apply
Register and apply here. You may also need to provide mortgage statements, housing-related documents, and proof of your financial hardships.
Foreclosure and Its Consequences
Homeowners facing foreclosure in Illinois must understand how the process works and its consequences. Defaulting your mortgage payments may result in your home being repossessed by your lender.
Foreclosure can seriously damage your credit score, so you must avoid it at all costs. Furthermore, a foreclosure can be devastating to a community. The decline in property values can lead to increased crime as criminals target vacant homes.
Avoid Foreclosure with Favor Home Solutions’ Save My Credit Program
For a simple and effective way to avoid foreclosure, reach out to Favor Home Solutions! We’re dedicated to restoring your peace of mind and protecting your credit. Our ‘Save My Credit’ Program takes over your mortgage payments, so you don’t have to list your home for sale or deal with a foreclosure mark on your credit report for years.
You might even be able to pocket some money at the end. No fees, no gimmicks, and no obligations. Contact us today to get started!
