The Illinois Hardest Hit Program, which was funded through the federal Hardest Hit Fund, provided financial assistance to eligible homeowners struggling to avoid foreclosure. Unfortunately, April 30, 2019 was the last day to apply for assistance. On the off chance that the state receives additional funding and reopens, this article provides an overview of the program.
In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, $7.6 billion in aid was allocated to the 18 states, including Illinois, along with Washington, D.C., that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis.
Illinois was originally awarded over $445 million in funds through the Hardest Hit Fund to help eligible homeowners avoid foreclosure, so the state started its Hardest Hit Program. In 2016, the government gave Illinois an additional $269,474,060. Illinois had until 2020 to distribute all of the money it received, but the program ended earlier because the allocated money ran out.
The types of mortgage assistance available under the Illinois Hardest Hit Program were:
Reinstatement assistance was a program that provided a one-time payment covering past-due mortgage payments, fees, and penalties in full. Monthly mortgage payment assistance program provided money to pay monthly mortgage payments. Eligible homeowners received up to $35,000 or 12 months of assistance, whichever occurs first.
Under this program, senior homeowners with a reverse mortgage who were delinquent on real estate taxes could get up to $35,000 to pay the overdue amount and up to two years of future tax and insurance payments.
Assistance was provided in the form of a 5-year forgivable loan secured by a junior lien that is recorded against the property. You need to repay the loan only if you sell the home at a profit or refinance during the loan term.
If you would like more information about the Illinois Hardest Hit Program, go to the Illinois Hardest Hit Program website or call 855-873-7405.
If you need information about foreclosure procedures in Illinois or want to learn about possible defenses to a foreclosure in your situation, consider talking to an attorney. If you want to learn more about different alternatives to foreclosure, including loan modifications, short sales, and deeds in lieu of foreclosure, make an appointment to talk with a HUD-approved housing counselor.