Illinois Spending Millions to Help Homeowners with Mortgage Payments as Foreclosures Spike

As the number of foreclosures in Illinois rises, the state is spending millions of dollars to assist homeowners in paying their monthly mortgages. More than 78,000 foreclosure applications were recorded in the first quarter of this year, up 39 percent from the previous quarter and 132 percent from a year ago, according to the U.S. Foreclosure Market report. With 3,534 foreclosure starts, Illinois ranked fourth in the US, while Chicago led all large metro areas, outpacing New York and Los Angeles. In the first quarter of 2022, lenders nationwide seized 11,824 residences through foreclosure, up 41% from the previous quarter and 160 percent from a year before.

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The Illinois Homeowner Assistance Fund (ILHAF) was established by Governor JB Pritzker and the Illinois Housing Development Authority (IHDA) to assist homeowners who have fallen behind on monthly mortgage payments and/or related housing bills as a result of the COVID-19 outbreak. The program offers $309 million in taxpayer dollars to cover housing bills such as missed mortgage payments, property taxes, insurance, and unpaid condo association fees. To be eligible, homes must have been impacted financially by the COVID-19 outbreak on or after January 21, 2020. They must also own and occupy their primary dwelling in Illinois, be at least 30 days behind on housing expenses, and have a household income of less than 150 percent of the Area Median Income.

“We know that people are still struggling,” said Kristen Faust, executive director of the Illinois Housing Development. “We still have homeowners who need assistance who are behind on their mortgage payments, who maybe are making payments now but are still behind from last year.” 

For more information on how to apply for housing assistance and to view an online webinar detailing the application process, visit the ILHAF official site. If you face foreclosures or have any questions, please contact the ILHAF call center at (866) 454-3571. Keep in mind, that the deadline to apply is May 31.