Mortgage Relief Coming to Illinois Homeowners

Learn how you might be able to get free money from the government through an upcoming COVID mortgage-relief program in Illinois.

By , Attorney

In early 2021, President Joe Biden signed the American Rescue Plan Act into law. This law created a Homeowner Assistance Fund, a federal program, to give around $10 billion to the states to help households that are behind on their mortgages and other housing expenses due to COVID-19. Eligible homeowners in Illinois who've experienced a financial hardship because of the pandemic will be able to get federal money to make mortgage payments and pay other home-related costs.

The Illinois Homeowner Assistance Fund program (ILHAF) is scheduled to open to applications sometime in April 2022. Go to the ILHAF website to apply. You'll have to provide some documentation with your application, like mortgage statements or statements for your other housing-related costs, proof of income (such as pay stubs and tax returns), and a government-issued ID (like a driver's license).

You'll also need to provide proof that you looked into all loss mitigation options, so you'll probably need a letter from your servicer stating what options you were offered or denied, or a certificate from a housing counselor saying you completed housing counseling. You can contact a HUD-approved housing counselor who will assist you at no cost. To find a counselor near you, go to HUD's website or call 800-569-4287.

Effective date: April 1, 2022