More foreclosure help is on its way.
The Department of Housing and Urban Development (HUD) is giving another $970 million to the states most affected by the foreclosure crisis.
Illinois is getting $30,143,105 million:
*Chicago: $15,996,360 million
*Cook County: $7,776,324 million
*Lake County: $1,370,421 million
*State of Illinois: $5 million
It’s the third round of funding through HUD’s Neighborhood Stabilization Program (NSP), which gives state and local governments the ability to acquire, redevelop or demolish foreclosed properties.
“These grants will support local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods,” said U.S. HUD Secretary Shaun Donovan. “We want to make certain that we target these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight.”
NSP also tries to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance.
This third round of funding will take advantage of the First Look program Donovan announced last week, in which lenders who own foreclosed homes must give NSP grantees 12 to 14 days to evaluate and bid on a property before anyone else can.
To see how much funding each state received, click here.
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The Dodd-Frank Wall Street Reform and Consumer Protection Act, which is providing this third round of funding, is also creating a $1 billion Emergency Homeowners Loan Program that will be administered by HUD.
This loan program will provide up to 24 months of mortgage help to homeowners at risk of foreclosure who have experienced a substantial reduction in income due to involuntary unemployment, underemployment or a medical condition.
Stay tuned to Chicagoland Real Estate Forum, as we will provide the details of the program as it officially launches in the next several weeks.