Giannoulias’ legislation aims to reduce foreclosures
Bill expands Treasurer’s housing program to help maintain homeowners’ credit

January 10, 2008

A measure drafted by State Treasurer Alexi Giannoulias that would make it easier for homeowners to refinance mortgages was approved by lawmakers in the Illinois House today.

The proposed legislation would expand the Treasurer’s Our Own Home program, enabling the Treasurer’s Office to refinance a mortgage before a borrower misses a payment and faces foreclosure.

The bill, introduced by House Speaker Michael Madigan (D-Chicago), State Rep. Karen Yarbrough (D-Maywood) and State Sen. Jacqueline Collins (D-Chicago), passed out of the Illinois House by a 111 to 2 vote margin. It now awaits a vote in the Illinois Senate.

“There have been far too many foreclosures in Illinois,” Giannoulias said, noting that foreclosure
filings in Illinois jumped 55 percent in 2006 to 72,455 and are expected to increase through 2008.

Under the existing Our Own Home program, the Treasurer’s Office guarantees 10 percent of the homebuyer’s mortgage to the lender. The program is designed primarily for prospective homebuyers who are unable to secure a conventional mortgage because of less than perfect credit or a high debt-to-income ratio. This guarantee has helped more than 350 Illinois residents buy a home with a conventional mortgage.

The Our Own Home program also assists people who have already missed at least one mortgage payment due to particular financial hardships, such as a loss of employment or death in the family. However, the program cannot help homeowners who are in danger of losing their home until they have actually missed a payment.Giannoulias’ legislation is designed to offer the 10 percent security to homeowners so they can refinance their mortgages before they miss a payment.

“It is important that we can step in before the homeowner misses a payment, ruining their credit rating or worse, losing their home” Giannoulias said.

Any Illinois homeowner whose household income does not exceed $75,000 or whose home value is appraised at or below the median home value for the county in which the home is located is eligible to participate in the Our Own Home Program. In addition, the program is only available to homeowners who cannot secure a conventional mortgage from their lender without the use of the program’s 10 percent guarantee.

For more information about the Our Own Home program, visit www.treasurer.il.gov.

  
     
 
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