HOSTED BY:

Governor Quinn’sMortgage Relief Project

Illinois Foreclosures & MRP

Illinois has been hit hard by foreclosures

Metro areas and neighboring counties feeling greatest impact

Since 2009, MRP has been touring the state targeting regions needing the most help

Peoria (2x)

Metro EastCollinsville

Edwardsville

Danville

ChicagoArturo Velasquez Institute (2x)

Kennedy King College (2x)Lincoln Park High School

Truman CollegeWright College

Chicago SuburbsAddisonAuroraBatavia

BensenvilleBloomingdaleBolingbrook

CreteCrystal LakeDes Plaines

Glendale HeightsGrayslake

JolietRomeovilleVilla Park

Springfield

What should I know?

What are my options………….

What Government programs are available to me…

Mortgage scams…………

What happens in a foreclosure…………

What if I have a complaint to file………

BREAKING NEWS!

On May 30, 2013 the The U.S. Department of Treasury and the Department of Housing and Urban announced the extension of HAMP & HARP through the 2015!

Who Owns My Loan?

Important to know who owns your loan in order to qualify for the Making Home Affordable Program

Determining if your mortgage is Fannie Mae• http://loanlookup.fanniemae.com/loanlookup/• Must verify that you are owner or have owner’s

consent

Determining if your mortgage is Freddie Mac• https://ww3.freddiemac.com/corporate/• Must verify that you are owner or have owner’s

consent

HAMP/MHA Modification Option

Home is primary residence Amount owed on first mortgage is equal to

or less than $729,750 Trouble making payments Obtained your mortgage before Jan. 1, 2009 Monthly payment on first mortgage is more

than 31% of your gross monthly income GSE must be Fannie Mae or Freddie Mac

Example: HH Income of $50,000

HARP Refinancing Option

Own a 1- to 4-unit home Allows you to refinance your primary

residence at today’s low rates Current on your mortgage payments Total amount you owe is MORE

THAN your home is worth (underwater) – No Longer a Cap

Loan owned or guaranteed by Fannie Mae or Freddie Mac

Proprietary Options for AssistanceA proprietary modification is one that is offered by your lender and is another option if you did not qualify for HAMP or federal assistance. An example of this is the Shared Appreciation Modification (SAM) offered by OCWEN: The principle of the loan is written down to 95% of the current value

of the home The written-down portion is forgiven in one third increments over

the next three years, so long as the homeowner stays current on the modified mortgage

When the house is later sold or refinanced, the borrower must share 25% of the appreciation with the investors that own the loan; borrowers keep 75% of the gain

National Bank Foreclosure Settlement (Big 5)AM I ELIGIBLE FOR BENEFITS?You may be eligible if you fall into one of the following categories:

• You lost your home anytime between January 1, 2008 and December 31, 2011 and Bank of America, Wells Fargo, Chase, CitiGroup, or GMAC handled your mortgage payments.

• You owe more on your home than it is worth; you are 30 days or more behind on your mortgage payments, or you are at risk of falling behind on your mortgage payments and you make your mortgage payments to Bank of America, Chase, Wells Fargo, CitiGroup, or GMAC.

• You owe more on your home than it is worth, you are current on your mortgage, you make your loan payments to Bank of America, Chase, Wells Fargo, CitiGroup, or GMAC and you are seeking to refinance your loan.

National Bank Foreclosure Settlement (Big 5) Cont… IF I LOST MY HOME DURING THAT TIME PERIOD, WHAT SHOULD I DO?• You will be contacted by the Attorney General’s Office through a

settlement administrator. You can call the Illinois Attorney General’s Homeowner Hotline at 1-866-544-7151 or visit us at to leave your contact information:

• You may also file a claim with the federal Office of the Comptroller of the Currency if you believe you have been financially injured due to errors, misrepresentations or other deficiencies in your foreclosure process that took place between January 1, 2009 and December 31, 2010.

Breaking News!

Nearly 30,000 Illinois borrowers will receive $43.3 million in relief payments through the national foreclosure settlement.

The settlement administrator will mail 29,795 checks averaging $1,480 starting June 10, 2013 to eligible Illinois borrowers who had their home loan serviced by one of the settlement’s five mortgage servicers – Bank of America, JPMorgan Chase, Wells Fargo, Citibank and GMAC/Ally – and lost their homes to foreclosure between January 1, 2008, and December 31, 2011.

Homeowner Protection Act

Law signed by Governor Quinn in April 2009 On June 20, 2013 Governor Quinn extended HPA

through July 2016

Gives consumers who fall behind on their mortgage payments a 90-day “grace period” during which the lender cannot begin foreclosure

During the 90-day period, a consumer can, with the help of a housing counselor, negotiate a workout plan with the lender

HPA Eligibility

At least 30 days behind on your mortgage payments

Received a notification from your lender or servicer about your right to seek housing counseling

Exercise your right to housing counseling TODAY and get the full 90 days!

One-time only per mortgage

HPA Eligibility

Forced Placed Insurance?

Forced placed insurance is an insurance policy taken out by your lender when the homeowner does not carry insurance on their asset, your home.

Premiums for this coverage are typically much higher, because the insurance companies feel the homeowners represent a higher risk.

Policy coverage for this insurance, and all cost are then passed onto the homeowner.

Forced Placed Insurance Cont…

Some homeowners have reported their lender:o Purchased exorbitant insurance coverage that cost up to

10x more than the homeowner’s previous coverage o Retroactively purchased insurance for past time periods

that were not subject to any claims o Billed the homeowner for additional coverage or forms of

coverage that were not required under their mortgage agreement

o Allowed the homeowner’s existing coverage to lapse without notice before purchasing “force placed” insurance

Mortgage Fraud in Illinois

The Mortgage Fraud Task Force was established by the IDFPR to ensure that mortgage companies comply with the strict standards of conduct established by state laws

Since its inception, the MFTF has taken disciplinary action against more than 200 persons and entities and assessed fines of nearly $3 million and conducted a regulatory sweep of more than 150 mortgage companies

Homeowner Protection Initiatives

BEWARE of anyone who says they can “save” your home if you sign or transfer over the deed to your house

DO NOT sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company and have YOUR OWN lawyer or housing counselor

NEVER submit your mortgage payments to anyone other than your mortgage company without their approval

Beware of Foreclosure Rescue Fraud

Avenue of Broken Dreams

South Side bungalow of 75-year-old woman was “stolen” by people she trusted

“Friends” persuaded her into signing documents, including the deed to home of 30 years

IDFPR uncovered a slew of fraud and is actively battling to help woman keep her home

IDFPR Enforcement Successes

2007-Present

IDFPR Enforcement Successes

2010 MFTF wins 2010 CLEAR

Investigative Excellence Award The Council on Licensure,

Enforcement and Regulation (CLEAR) honored task force for its two-year “Avenue of Broken Dreams” investigation

There is NEVER a fee to get assistance or information about the Making Home Affordable Program from your lender or a HUD-approved housing counselor

BEWARE of any person or organization that asks you to pay a fee in exchange for housing counseling services or a loan modification

If they ask you to pay, WALK AWAY!

Don’t Become a Victim to Predators

Forced Placed Insurance?

Forced placed insurance is an insurance policy taken out by your lender when the homeowner does not carry insurance on their asset, your home.

Premiums for this coverage are typically much higher, because the insurance companies feel the homeowners represent a higher risk.

Policy coverage for this insurance, and all cost are then passed onto the homeowner.

Forced Placed Insurance Cont…

Some homeowners have reported their lender:o Purchased exorbitant insurance coverage that cost up to

10x more than the homeowner’s previous coverage o Retroactively purchased insurance for past time periods

that were not subject to any claims o Billed the homeowner for additional coverage or forms of

coverage that were not required under their mortgage agreement

o Allowed the homeowner’s existing coverage to lapse without notice before purchasing “force placed” insurance

If you feel you have been duped during a residential loan transaction, have paid someone for a loan modification, or have had lender forced placed insurance on your propertyfile a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!!

Or, by mail: IDFPRJames R. Thompson Center100 W. Randolph Street, 9th FloorChicago, Illinois 60601

By phone: (800)-532-8785 Online: www.idfpr.com

File a Complaint…TODAY!

Foreclosure

A judicial proceeding by lender/servicer to obtain judgment against the borrower for his/her breach of promise to pay

Lender/servicer takes borrower’s interest in the house, which was given as security for the promise

Summons• An order to appear in court to respond to the

foreclosure complaint• Do not ignore this information

What are my options?

Refinance• Pay off the entire mortgage• New loan with affordable monthly payment• Current employment is necessary

Workout• Lender/servicer agrees to new payment plan• Can you afford the proposed plan?• Seek legal advice before signing

Options

Short Sale• Agreement by lender/servicer to sell the

property for less than is owed on a mortgage

Deed in lieu• Borrower surrenders property to lender to

satisfy the loan and avoid foreclosure proceedings

Be aware of future liabilities!Seek legal and tax advice!

Options

Graceful Exit

HUD counselor can assist in this process

Opportunity to rebuild your credit

Foreclosure Steps

Court Hearing• Borrower may appear in person or by

a lawyer and contest the foreclosure• If no appearance, a default judgment

may be entered and all proceedings continue

• Many counties grant a continuance just for appearing in court.

Foreclosure Steps

Reinstatement• Within 90 days within the date of service, a

borrower may reinstate the loan by fulfilling all payments, including fees and costs

• Loan continues as normal

Public Auction• If property is not redeemed, judicial sale is

held like an auction

Foreclosure Steps

In the end…• If the property could not be saved,

the foreclosure is completed • Eviction• Work with the lender for a

graceful exit

Important

Contact your lender/servicer as soon as you think you cannot make a payment, or contact a HUD-certified housing counselor in your community

Do not ignore telephone calls or correspondence from your lender/ servicer. The sooner you call, the better. Lenders do not want your house.

Do not seek assistance from individuals who make you an offer that is too good to be true

Cook County Residents

Cook County Foreclosure Mediation Program

Cook County Residents

Am I Eligible?

Resident of Cook County Have received a summons from the Circuit Court of

Cook County Live in the building in foreclosure – which may be a

single-family home, single-family condominium or apartment building with four or fewer units.

Summons

Mediation Hotline

Information

If you feel you have been duped during a residential loan transaction, file a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!!

Or, by mail: IDFPRJames R. Thompson Center100 W. Randolph Street, 9th FloorChicago, Illinois 60601

By phone: (800)-532-8785 Online: www.idfpr.com

File a Complaint…TODAY!