Illinois Housing Development Authority $1.4M Grant to Provide Free Foreclosure Mitigation Counseling to Struggling Homeowners

CHICAGO – Today, the Illinois Housing Development Authority (IHDA) Board of Directors approved allocating a $1.4 million federal grant to fund free foreclosure counseling help for homeowners throughout Illinois.

The grant, provided through the National Foreclosure Mitigation Counseling (NFMC) program, will fund 5,000 mortgage delinquency and foreclosure prevention counseling sessions across Illinois. As a result of the money available through the State, 39 partner agencies will be able to provide free counseling – a critical resource during these tough economic times. After a competitive application process, IHDA emerged with the third-largest grant award of 35 state housing finance agencies that bid for the opportunity to broaden help for homeowners in their communities.

“Financial counseling is the most effective first step struggling homeowners can take to save their homes,” said Gloria L. Materre, IHDA Executive Director. “Governor Pat Quinn’s Homeowner Protection Act gives homeowners facing foreclosure an extra 90 days to work out a solution if they enter counseling.”

Homeowners who are struggling to make their mortgage payment or have entered the foreclosure process should seek counseling immediately. Counselors can inform homeowners of programs they may qualify for (i.e., President Obama’s Making Home Affordable program); present options to homeowners; work as a liaison between the homeowner and their lender; and educate homeowners in the complex foreclosure process. Homeowners who qualify for a loan modification under the federal Making Home Affordable program can see their mortgage payments reduced to as low as 31 percent of gross monthly income, possibly saving hundreds of dollars a month.

To seek counseling today, go to www.findaforeclosurecounselor.org to search for a counseling agency by ZIP code.

About the Illinois Housing Development Authority IHDA (www.ihda.org) is a self-supporting state agency that finances the creation and the preservation of affordable housing across Illinois. Since its creation in 1967, IHDA has allocated more than $9.67 billion and financed more than 204,000 affordable units across the state. IHDA accomplishes its mission through a number of federal and state funding sources including the Illinois Affordable Housing Trust Fund, the Illinois Affordable Housing Tax Credits Fund, the allocation of federal Low Income Housing Tax Credits, and HOME Investment Partnership funds. IHDA is also a bonding authority, and independently sells bonds, based on its own good credit, to finance affordable housing in Illinois. -30- ###

FOR IMMEDIATE RELEASE November 20, 2009

Request a Home Affordable Modification

To request a modification fill out these two forms:

• Request Form (Request for Modification and Affidavit)

• Tax Form (Form 4506T-EZ)

Determine if you are eligible for a Home Affordable Modification by using the simple tool on this website.

If you are eligible, you can request a Home Affordable Modification by completing the easy steps below. If you need assistance completing the forms or have questions about the process, free help is available by calling the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673) and asking for MHA HELP.

Step 1 – Complete the Request Form (Request for Modification and Affidavit)

The Request Form provides information to your mortgage servicer about your home and financial situation. You can download an instruction guide for completing the Request Form here. After you have completed the form, print two copies—one for your records and one to send to your mortgage servicer. All of the borrowers on the mortgage must sign the Request Form.

Step 2 - Complete the Tax Authorization (IRS 4506T-EZ Form)

The Tax Form gives permission to your mortgage servicer to request a copy of the most recent tax return you have filed with the Internal Revenue Service (IRS). After you have completed the form, print two copies—one for your records and one to send to your mortgage servicer. Only one taxpayer is required to sign the Tax Form.

Step 3 – Gather Proof of Income

Your mortgage servicer is required to verify your income to ensure that the modified mortgage payments will be affordable for you. The type of documentation you need to provide depends on the source of your income. The simple Proof of Income Checklist will tell you what documents you need to collect if you are a wage earner, self-employed, or receive retirement income. Be sure to make copies of your income documentation and keep the originals for your records.

Step 4 – Send the Documents to Your Mortgage Servicer

After you complete, print, and sign the Request Form and Tax Form, send these documents, along with your proof of income, to your mortgage servicer. You will find the correct mailing address and fax number at Contact Your Mortgage Servicer