homeowner is confined to his or her home due to a medical
condition, as verified in writing by a physician, or the
homeowner resides 50 miles or more from the nearest
participating HUD-certified housing counseling agency. In
instances of telephone counseling, the homeowner must supply
any necessary documents to the counselor at least 72 hours
prior to the scheduled telephone counseling session.
"Counselor" means a counselor employed by a HUD-certified
housing counseling agency.
"Lender" means that term as it is defined in Section 1-4 of
the Residential Mortgage License Act of 1987.
"Good faith" means honesty in fact in the conduct or
Eligibility for assistance.
(a) No assistance may be given to a homeowner pursuant to
this Act unless:
(1) The property securing the mortgage is the
homeowner's primary residence.
(2) The homeowner is a resident of this State and his
or her property is being foreclosed due to failure to make
(3) The lender agrees to halt foreclosure proceedings
upon written notification by the Authority that a homeowner
has been approved for assistance.
(4) The homeowner's household income is less than 120%
of area median income determined by the U.S. Department of
Housing and Urban Development.
(5) The mortgage lender agrees to renegotiate in good
faith the terms of the mortgage being foreclosed upon
written notification that the homeowner has been approved
by the Authority.
(6) The homeowner has attended a counseling session
that was provided by a HUD-certified housing counseling
(7) The borrower is a resident of this State.
(8) The homeowner agrees to defend and indemnify and
hold harmless the Authority from and against any and all
damages arising out of the Authority's payment on behalf of
(9) The lender agrees to defend and indemnify and hold
harmless the Authority from and against any and all damages
arising out of the Authority's payment on behalf of the
(b) Upon a determination that the conditions of eligibility
described in this Act have been met, and funds for assistance
are available, the homeowner shall become eligible for the
assistance described in Section 20 of this Act.
(a) If the Authority determines that a homeowner is
eligible for assistance under this program, the Authority shall
pay directly to each lender payments on behalf of the homeowner
seeking assistance under the program. This amount shall
include, but not be limited to, delinquencies of principal,
interest, taxes, assessments, ground rents, hazard insurance,
mortgage insurance, and credit insurance premiums.
(b) An eligible applicant may not receive a grant in excess
of $6,000, or the sum of 3 monthly mortgage payments on the
property, whichever is less.
(c) Grants made under this Act may only be used to satisfy
mortgage financing with a first lien position.
(a) The Authority shall use only funds specifically
appropriated by the General Assembly for the purposes of this
Act to make payments to lenders, to provide reimbursement to
HUD-certified housing counseling agencies for costs incurred
in assisting borrowers, and to reimburse the Authority for
administration of the program. Assistance under this Act shall
not be available at any time the Authority does not have funds
currently available to approve applications for emergency
(b) This Act is subject to appropriation; however, at no
time shall the cumulative amount of grants issued under this
program exceed $3,000,000 in a calendar year.
This Act is repealed on January 1,