Illinoisans caught in the foreclosure crisis should benefit from a new law signed Thursday. It is supposed to keep homeowners from losing their homes after they’ve applied for a federal mortgage modification program.
“In the foreclosure process, (losing your home) is the end result for someone who has fallen behind on their mortgage payments,” says Illinois Housing Development Authority spokeswoman Rebecca Boykin. “What this law does is protect them while they are applying for this crucial federal program that can provide them with modification to make their payments more affordable, so they can afford to stay in their home.”
The Home Affordable Mortgage Program (HAMP) adjusts the monthly payment to 31 percent of income. Boykin says applying for HAMP, which you do through your mortgage lender, is free of charge.