Foreclosure Relief is Granted in Illinois
One of the most difficult problems for families facing foreclosure may be knowing how and when to ask for help. Too often, people ignore early signs of financial trouble, hoping their situations will improve, and find themselves with very limited choices when they finally decide to take action.
In an effort to offer the kind of guidance and information that could prevent foreclosure for many families, Governor Blagojevich of Illinois has announced a grant to offer counseling for those who need help deciding how to save their homes, reports the Illinois Housing Development Authority (IHDA).
The IHDA plans to allocate the $370,000 grant from the State Affordable Trust Fund to the Neighborhood Housing Services of Chicago. Funds will then be distributed to existing nonprofit organizations for the purpose of training workers in foreclosure counseling.
An estimated 1,000 families will benefit from the one-on-one counseling, and as many as 250 houses should be saved from foreclosure, according to IHDA predictions. The grant money will be used to reimburse the nonprofits for their services and to finance a coordinator who will organize the network and community outreach programs.
Specifically, organizations will receive $100 for each client who uses the foreclosure counseling services, and $1,500 for each positive result. "Positive results" include the restructuring or refinancing of a loan, forbearance, sale or short sale of a home, agreement to a repayment plan or reinstatement of the mortgage, and deed-in-lieu of foreclosure.
Housing Action Illinois will lead training, instructing participating agencies in the handling of foreclosures. The trained members will then be able to offer homeowners individual, specific insight into their problems.
So far, more than ten nonprofits in Illinois have expressed interest in participating.
The grant is reportedly the first of its kind, and should be an important step in preventing unnecessary foreclosures for Illinois residents. Having access to pertinent information and advice from trained professionals could make the difference between saving a home and losing it.
Apparently, others are taking notice of this move. Donations amounting to $150,000 from national nonprofit groups have already materialized to support the program. And the designers are working hard to get the word out to the public.
Television and newspaper advertisements will be appearing in the coming weeks to inform those who could benefit from the services. The program will employ a national foreclosure hotline to put its clients in touch with foreclosure counseling.
To learn more, call the hotline toll free at 1-800-995-HOPE. For information about refinancing to avoid foreclosure or Chapter 13 bankruptcy, contact Foreclosure-Fighter at 1-877-219-3153.