On Monday, our blog discussed the national foreclosure settlement and what homeowners qualified to make a claim to the money. As was discussed, the number of individuals receiving a direct benefit from the settlement is relatively small. However, state governments are receiving large amounts of money, and unlike in other states, Illinois has vowed to spend the money to help homeowners.
Attorney General Lisa Madigan’s office will decide how to use the funds, and her spokesperson released a statement that it would reject any move to divert the funds to cover other parts of the Illinois budget, even though our state in is dire financial straits. The office contends the money should be directed to programs aimed at helping people avoid losing their homes, stating,“This is about helping homeowners, and that’s what the money should be used for.”
While the governors of our border states Missouri and Wisconsin are proposing to use their state’s money to other purposes, Gov. Quinn’s Department of Financial & Professional Regulation vows to devote the money to fighting mortgage fraud.
Chicago has been hit especially hard by the foreclosure crisis and is desperately in need of help for homeowners struggling through hard times and defaulting on their loans. Fraud and predatory lending is especially problematic here, as unlawful mortgage loan companies prey on our immigrant population. Hopefully, this money will benefit our most vulnerable Chicagoans and others in the state.
Stay posted for Friday, when our blog questions why Fannie and Freddie refused to participate in the settlement.
U.S. Law Attorneys, Ltd. – Schaumburg bankrutpcy lawyers
Those watching the approval and movement of these funds already know that some mini-funds have already been allocated to certain communities. We have begun to see advertisements for assistance with foreclosure avoidance. But I would encourage anyone facing foreclosure, who can now (again) afford his/her mortgage, to investigate Chapter 13 bankruptcy relief. If you’re in a flood, don’t wait for the helicopter if you have a boat handy.