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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 |
transaction concerned.
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Section 15. 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 |
mortgage payments. |
(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% |
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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 |
agency. |
(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 |
the borrower. |
(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 |
borrower. |
(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.
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Section 20. Assistance payments. |
(a) If the Authority determines that a homeowner is |
eligible for assistance under this program, the Authority shall |
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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.
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Section 25. Program funding. |
(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 |
mortgage assistance. |
(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.
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Section 30. Repealer. This Act is repealed on January 1, |