Federal Program Offers $35,000 to Assist Seniors Struggling with
Reverse Mortgages
Illinois’ Reverse Mortgage Assistance
Program helps senior homeowners with reverse mortgages avoid
foreclosure
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[April 05, 2017]
CHICAGO – The Illinois Housing
Development Authority (IHDA) today launched the Reverse Mortgage
Assistance Program to help senior homeowners with a reverse mortgage
pay back taxes and avoid foreclosure. Starting April 3, IHDA will
provide up to $35,000 in federal assistance to qualifying borrowers
with reverse mortgages to pay overdue property taxes, eligible
property expenses and future property taxes so they can avoid
foreclosure and remain in their homes.
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“There is a real need for this kind of assistance in Illinois,” said
IHDA Executive Director Audra Hamernik. “Many of these seniors are
on fixed incomes and took out a reverse mortgage to help with
healthcare or everyday living costs. They don’t have the resources
to weather an unexpected home repair, medical event or loss of
household income. This program offers the help they need to get back
on track with their payments before they lose their home.”
Reverse Mortgages allow homeowners 62 and older to borrow against
the equity they have built up in their home. The proceeds the
borrower receives from the reverse mortgage must be repaid when the
house is sold or the homeowners move. The borrower is still
responsible for paying property taxes and homeowner’s insurance, and
if they are unable to keep up with their payments, they may lose the
home to foreclosure.
![](http://archives.lincolndailynews.com/2017/Apr/05/images/ads/current/pestcontrol_bch_termites.png)
The Reverse Mortgage Assistance Program offers up to $35,000 to
reinstate a homeowner’s delinquent property expenses and pay future
taxes and insurance for up to two years. The assistance provides a
window of opportunity for the homeowner to develop a financial
recovery plan with a certified housing counselor without the
immediate threat of foreclosure. To qualify, the homeowner must have
taken out an FHA Reverse Mortgage secured to a property located in
Illinois and experienced a qualifying hardship. The homeowner must
live in the property as their primary residence and have a household
income lower than 120 percent of their county’s median income.
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![](http://archives.lincolndailynews.com/2017/Apr/05/images/ads/current/humphrey_daily_quarter_030314.png) The Reverse Mortgage Assistance program is
funded by the U.S. Department of the Treasury’s Hardest Hit Fund (HHF)
program, a resource created in 2010 to provide targeted assistance
to states deemed hardest hit by the economic and housing market
downturn. The program was designed to leverage the expertise of
state and local partners by funding locally-tailored foreclosure
prevention and neighborhood stabilization solutions. In addition to
the new reverse mortgage program, IHDA uses HHF funds for temporary
mortgage payment assistance, refinance assistance, blight
elimination and down payment assistance for first-time homebuyers.
Together, the programs cater to the specific needs of homeowners,
homebuyers and entire communities.
[Illinois Housing Development
Authority]
![](http://archives.lincolndailynews.com/2017/Apr/05/images/ads/current/New_Holland_sda_daily_FARM_2017.png) |