Key borrower deadline extended in Illinois for ‘Making Home Affordable’ program

 

SPRINGFIELD – Illinois homeowners struggling to avoid foreclosure or to protect their legal rights against lenders will get support under the recently extended, federal Making Home Affordable program.

“We know the housing crisis is not over for every homeowner in every neighborhood, and the federal government recognized this when it extended the Making Home Affordable program through the end of this year,” said state Sen. Jacqueline Y. Collins, D-Chicago, who sponsored a bill signed into law that extends a key borrower deadline in Illinois.

The program gives struggling homeowners options – such as refinancing, a modification of mortgage terms, a short sale in lieu of foreclosure or a temporary forbearance for unemployment – when they become unable to make monthly payments and apply to the federal government for help. If the lender continues to foreclose on and sell the home in violation of the Making Home Affordable Act and if the borrower applied for assistance by the deadline, Illinois law allows the borrower to ask a court to set aside the sale.

Collins sponsored a measure, recently signed into law, that extends the date by which the borrower is required to have asked for help under Making Home Affordable in order to ensure the justice system works for those whose lenders have violated rules while rushing to foreclosure.

Making Home Affordable is still accepting applications through Dec. 31. The new state law extends legal protections through Jan. 1, 2018, so that Illinois is prepared in case the federal government renews the program a second time.

Homeowners can learn more about Making Home Affordable and apply for assistance through www.makinghomeaffordable.gov or by calling (888) 995-HOPE.

— From the Illinois Business Journal

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