Due to the subprime mortgage crisis, foreclosures have recently increased in Illinois by 25 percent, according to the Illinois Housing Development Authority. But as the Quad City Times reported yesterday, the IHDA's Illinois Homeowner Assistance Initiative is beginning to assist many of those in danger of losing their homes. Launched by Gov. Blagojevich in February, the program guarantees loans for homeowners who are threatened with foreclosure and want to refinance their high-interest mortgages. From a recent press release:
The refinancing loans offered through the Homeowner Assistance Pool are 30-year fixed rate mortgages, guaranteed by the Federal Housing Administration and have interest rates of between 5.75 percent and 8 percent. Participating lenders agree to limit loan fees to no more than $1,000, with no prepayment penalties.
In late March, the pool for the program increased to $310 million from $200 million as four new Illinois lenders signed on. IHDA executive director DeShana Forney says she is looking for additional lenders and also touring the state in an attempt to raise awareness among homeowners about the program. For more information you can check out the IDHA website.
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