'Hardest Hit' Mortgage Relief Program Kicks Off
CHICAGO (CBS) -- Gov. Pat Quinn is formally kicking off the Hardest Hit Fund this week, for homeowners who have been struggling with their mortgages.
As WBBM Newsradio Political Editor Craig Dellimore reports, unlike President Barack Obama's previous loan modification program, the money that is used to pay a mortgage in this federally-funded program does not have to be paid back.
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Homeowners can get up to $25,000 in mortgage help through the $345 million program.
The program provides the only relief of its kind for up to 15,000 struggling homeowners who have been rejected by other assistance programs. It is aimed at Illinois residents whose income has dropped by at least 25 percent. It would provide a 10-year forgivable loan to help them catch up on overdue mortgages.
Mary Kenney, executive director for the Illinois Housing Development Authority, says the Hardest Hit Fund has income requirements, among other things.
"I think the majority of them – and you know, the devil is sometimes in the details – I think there are very specific requirements for the program," she said. "But I think for the most part, if you're a homeowner residing in Illinois, and this home is your primary residence, you're delinquent, and you've had an income interruption, you're likely to qualify for the program."
Illinois qualified for the program due to its high unemployment figures and lower property values.
