Illinois's Hardest Hit Program Re-Opens for Mortgage Assistance

Starting Aug. 1, Illinois residents who’ve experienced a sudden drop in income can now apply for mortgage assistance through the Illinois Hardest Hit Program. Qualifying homeowners can receive up to $35,000 in federal assistance at no cost to the homeowner.

The HHF allows eligible households who have experienced at least a 15-percent reduction in income to avoid foreclosure while they work to regain employment and financial stability. In 2011, the Illinois Housing Development Authority was approved by the U.S. Treasury Department to administer $455,603,557 in hardest hit funding.

This year, IHDA was awarded an additional $269,474,060 of funding to expand the HHF program. Applicants must have experienced a reduction in income due to a qualifying, no-fault hardship event.

The hardship must have occurred after Jan. 1, 2010 and after the property purchase date. Qualifying hardship criteria includes:

• Unemployment
• Underemployment
• Decrease in/loss of business income
• Loss of income due to disability or health related event
• Death of a spouse or title holder
• Divorce of a spouse or title holder

Other eligibility criteria include:

• Property located in Illinois.
• Primary residence of applicant(s)/title holders.
• Property is owner occupied 1-4 unit.
• Property is single family, multi-family (4 unit max), townhome, condominium, mobile home on a permanent foundation.
• Household must have experienced a 15% reduction in income.
• Household income cannot exceed 120% Area Median Income.
• Household liquid assets cannot exceed $17,500.
• Loan must be secured by a 1st lien position (Home Equity Loans are accepted if in 1st position).
• Unpaid principal balance must not exceed $500,000.
• Loan must be fixed rate or an adjustable (No interest-only or negative amortization loans).
• Lender must be participating in the HHF program and willing to accept payments on applicant’s behalf.
• Applicant(s) must not have been convicted of a mortgage related felony in the last 10 years.

Residents who think they were victims of mortgage fraud should contact the IHDA at mortgagefraud@ihda.org or contact the U.S. Department of Treasury’s Office of Financial Stability Anti-Fraud Unit or the SIGTARP Hotline.