State Housing Agency Announces Two Rounds of Counseling Funding to Protect Homeowners

CHICAGO – To continue Governor Pat Quinn’s commitment to make FREE foreclosure prevention and homeownership counseling available across the state, the Illinois Housing Development Authority (IHDA) today announced two new rounds of funding are available to enable community-based organizations to provide housing counseling to more families to protect their homes from foreclosure.

As the state’s housing agency, IHDA currently sponsors 80 organizations that provide trusted financial advice on buying a home, foreclosure prevention and credit issues to homeowners. Under a new $3 million round of the Foreclosure Prevention Program (FPP), thousands of additional homeowners will be able to access FREE counseling through the state’s expansive network of counseling partners. In addition, IHDA has issued a request for proposals (RFP) for counselors under Round 7 of the federal National Foreclosure Mitigation Counseling Program (NFMC) that will provide additional resources for FREE homeownership counseling.

Counseling help funded through the two programs is available now through Governor Pat Quinn’s Illinois Foreclosure Prevention Network (IFPN) at 855-KEEP-411 or by visiting www.keepyourhomeillinois.org.

“When families connect with qualified counselors, we foster sustainable homeownership and keep neighborhoods strong by making sure families stay in their homes,” said IHDA Executive Director Mary R. Kenney. “Counseling is critical to the long-term success of homeowners, and it is vitally important to provide this resource to prevent foreclosures before they happen.”

Counseling is one of the most effective resources available to safeguard families and communities during this economy. Studies show that housing counseling nearly doubles the chances of mortgage modifications and reduces the likelihood of re-default by at least 67 percent. In addition to foreclosure prevention counseling, IHDA’s affordable loan programs also require buyers to undergo counseling to better prepare them for the responsibilities of homeownership.

Launched under Governor Quinn and managed by IHDA, the Foreclosure Prevention Program (FPP) sustains the Illinois Foreclosure Prevention Network (IFPN). Governor Quinn’s Illinois Foreclosure Prevention Network (IFPN) is a FREE, one-stop resource to connect homeowners with important tools, including access to counseling services, legal advice, mortgage payment assistance programs such as the Illinois Hardest Hit program, foreclosure prevention events, and tips on how to avoid mortgage fraud. During the IFPN’s first 10 months, 37,000 homeowners have received counseling.

Since 2008, IHDA has invested $11.5 million under the National Foreclosure Mitigation Counseling Program (NFMC) program to help 30,000 Illinois homeowners access counseling assistance. Earlier this year, 40 agencies received financing through IHDA under the Foreclosure Prevention Program (FPP), which is funded through a $50 fee for plaintiffs filing a foreclosure complaint. To apply for both rounds of funding, qualified organizations can find more information under the “Partner” section at www.ihda.org.

Illinois residents who are having trouble paying their mortgage, facing foreclosure or know someone who is should reach out to IFPN as soon as possible by calling the IFPN hotline at 855-KEEP-411 or by visiting www.keepyourhomeillinois.org. A list of upcoming outreach events is also available.