CHICAGO – Governor Pat Quinn today signed legislation to protect Illinois homeowners by preventing a lender from selling a home while the homeowner is applying for a federal mortgage assistance program. This legislation is part of Governor Quinn’s commitment to protecting Illinois families and helping them fight foreclosure.
“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 home for the holidays and the long term.”
Sponsored by State Senator Jacqueline Y. Collins (D-Chicago) and State Representative Michael J. Zalewski (D-Riverside), Senate Bill 1045 extends a current law that enables families who have applied for a loan modification under the federal Home Affordable Modification Program (HAMP) to stop the lender or servicer from selling their home.
In 2009, the Obama Administration worked with financial institutions to create HAMP – which allows qualified homeowners to modify mortgage payments to 31 percent of their income. The program lowers monthly mortgage payments to make them more affordable and sustainable.
The Governor signed a law in 2010 that allows homeowners to move to block a judicial sale when they can prove that they applied for a HAMP modification but the property was sold in violation of the program’s terms. Today’s action extends Illinois law to match the federal HAMP deadline of Dec. 31, 2015 – providing homeowners with more time to save their home from foreclosure. The new law takes effect immediately.
This law furthers the impact of the Governor’s Illinois Foreclosure Prevention Network (IFPN) ? a free, one-stop resource to connect homeowners with important tools, including access to counseling services, legal advice, federal mortgage assistance programs, foreclosure prevention events and tips on how to avoid mortgage fraud.
Through the IFPN, families facing financial hardship can access HAMP to apply for a loan modification. In Illinois, approximately 47,000 Illinois families have received permanent loan modifications through HAMP that enable them to stay in their home.
“Governor Quinn understands that linking homeowners with crucial assistance stabilizes communities by preventing foreclosures before they happen,” Illinois Housing Development Authority (IHDA) Executive Director Mary R. Kenney 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.”
Governor Quinn has been a leader on affordable housing in Illinois and made a historic commitment of $130 million in state capital funds to create more affordable housing opportunities. The Governor has also worked to spur affordable housing homeownership and multifamily rental development by proclaiming 2013 as the Year of Homeownership and launching four new safe and affordable mortgage programs since 2011. Also, affordable housing opportunities have increased. Since 2009, 10,300 working families have been able to purchase a home affordably, and 18,300 affordable rental units were created or preserved. In 2012, IHDA helped more than 2,700 working families access $308 million in capital to purchase a home. This represents an 80 percent increase over production in 2011 and a 770 percent increase over 2010.
Illinois residents who are having trouble paying their mortgage, facing foreclosure or know someone who is should reach out to IFPN as soon as possible by visiting www.keepyourhomeillinois.org or by calling the IFPN hotline at 1-855-KEEP-411.