Foreclosure

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Foreclosure Help

Job losses and economic uncertainty over the last several years have led to a wave of foreclosures across America. As more people have trouble paying their mortgage, some local communities have become flooded with "distressed sale" properties.

Housing inventories, fueled by continuing additions of foreclosed properties continue to dampen housing price recovery in the Illinois and Chicago markets.

Short Sales

A “short sale” is an industry term for when the owner of the home does not have enough equity in the property and not enough cash or liquid assets to be able to sell the property, pay off liens and selling expenses (e.g., property taxes, transfer taxes, real estate commissions) and provide a clear title to the purchaser. 

Many consider a “short sale” better in the long run for the homeowner because it avoids foreclosure which will damage a person’s credit score and make it much harder for the owner to buy another home in the future. IAR Short Sale Resources

  • The Obama Administration’s Home Affordable Foreclosure Alternatives Program (HAFA), effective April 5, will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP), by providing incentives for short sales and deeds-in-lieu of foreclosure rather than foreclosure. HAFA offers financial incentives for the borrowers and loan servicers to choose these options over foreclosure proceedings and attempts to streamline the short sale process by providing a standard process, timeframes and standard documentation.
  • U.S. Treasury officials recommended sites: Making Home Affordable Administrative Website for Servicers and Counselor Escalation Process (5/2/11)

Neighborhood Stabilization

  • The Neighborhood Stabilization Program is a nationwide effort authorized under the Housing and Economic Recovery Act (HERA) of 2008 providing nearly $4 billion in grants to states and local governments to purchase and redevelop foreclosed and abandoned properties. A second round of funding was approved under the American Recovery and Reinvestment Act of 2009 providing grants to states, local governments and nonprofits on a competitive basis. Learn more.

Help for Homeowners

At-risk homeowners are encouraged to ask a local REALTOR® or a HUD-certified financial counselor:

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Resources for Consumers