|
|
|
HB2360 Enrolled |
- 2 - |
LRB096 09284 MJR 19438 b |
|
|
1 |
| homeowner is confined to his or her home due to a medical |
2 |
| condition, as verified in writing by a physician, or the |
3 |
| homeowner resides 50 miles or more from the nearest |
4 |
| participating HUD-certified housing counseling agency. In |
5 |
| instances of telephone counseling, the homeowner must supply |
6 |
| any necessary documents to the counselor at least 72 hours |
7 |
| prior to the scheduled telephone counseling session. |
8 |
| "Counselor" means a counselor employed by a HUD-certified |
9 |
| housing counseling agency. |
10 |
| "Lender" means that term as it is defined in Section 1-4 of |
11 |
| the Residential Mortgage License Act of 1987. |
12 |
| "Good faith" means honesty in fact in the conduct or |
13 |
| transaction concerned. |
14 |
| Section 15. Eligibility for assistance. |
15 |
| (a) No assistance may be given to a homeowner pursuant to |
16 |
| this Act unless: |
17 |
| (1) The property securing the mortgage is the |
18 |
| homeowner's primary residence. |
19 |
| (2) The homeowner is a resident of this State and his |
20 |
| or her property is being foreclosed due to failure to make |
21 |
| mortgage payments. |
22 |
| (3) The lender agrees to halt foreclosure proceedings |
23 |
| upon written notification by the Authority that a homeowner |
24 |
| has been approved for assistance. |
25 |
| (4) The homeowner's household income is less than 120% |
|
|
|
HB2360 Enrolled |
- 3 - |
LRB096 09284 MJR 19438 b |
|
|
1 |
| of area median income determined by the U.S. Department of |
2 |
| Housing and Urban Development. |
3 |
| (5) The mortgage lender agrees to renegotiate in good |
4 |
| faith the terms of the mortgage being foreclosed upon |
5 |
| written notification that the homeowner has been approved |
6 |
| by the Authority. |
7 |
| (6) The homeowner has attended a counseling session |
8 |
| that was provided by a HUD-certified housing counseling |
9 |
| agency. |
10 |
| (7) The borrower is a resident of this State. |
11 |
| (8) The homeowner agrees to defend and indemnify and |
12 |
| hold harmless the Authority from and against any and all |
13 |
| damages arising out of the Authority's payment on behalf of |
14 |
| the borrower. |
15 |
| (9) The lender agrees to defend and indemnify and hold |
16 |
| harmless the Authority from and against any and all damages |
17 |
| arising out of the Authority's payment on behalf of the |
18 |
| borrower. |
19 |
| (b) Upon a determination that the conditions of eligibility |
20 |
| described in this Act have been met, and funds for assistance |
21 |
| are available, the homeowner shall become eligible for the |
22 |
| assistance described in Section 20 of this Act. |
23 |
| Section 20. Assistance payments. |
24 |
| (a) If the Authority determines that a homeowner is |
25 |
| eligible for assistance under this program, the Authority shall |
|
|
|
HB2360 Enrolled |
- 4 - |
LRB096 09284 MJR 19438 b |
|
|
1 |
| pay directly to each lender payments on behalf of the homeowner |
2 |
| seeking assistance under the program. This amount shall |
3 |
| include, but not be limited to, delinquencies of principal, |
4 |
| interest, taxes, assessments, ground rents, hazard insurance, |
5 |
| mortgage insurance, and credit insurance premiums. |
6 |
| (b) An eligible applicant may not receive a grant in excess |
7 |
| of $6,000, or the sum of 3 monthly mortgage payments on the |
8 |
| property, whichever is less. |
9 |
| (c) Grants made under this Act may only be used to satisfy |
10 |
| mortgage financing with a first lien position. |
11 |
| Section 25. Program funding. |
12 |
| (a) The Authority shall use only funds specifically |
13 |
| appropriated by the General Assembly for the purposes of this |
14 |
| Act to make payments to lenders, to provide reimbursement to |
15 |
| HUD-certified housing counseling agencies for costs incurred |
16 |
| in assisting borrowers, and to reimburse the Authority for |
17 |
| administration of the program. Assistance under this Act shall |
18 |
| not be available at any time the Authority does not have funds |
19 |
| currently available to approve applications for emergency |
20 |
| mortgage assistance. |
21 |
| (b) This Act is subject to appropriation; however, at no |
22 |
| time shall the cumulative amount of grants issued under this |
23 |
| program exceed $3,000,000 in a calendar year. |
24 |
| Section 30. Repealer. This Act is repealed on January 1, |