The Homeowners Protection Act (HPA) is meant to help Illinois homeowners who are at least 30 days behind on their mortgage payments. Regardless of the homeowner's income or the size of the loan, the law places certain requirements on lenders:
1) Lenders must notify homeowners in writing when the loan is more than thirty days past due.
2) Lenders must provide an opportunity for the homeowner to obtain housing counseling within 30 days. If a homeowner chooses to get counseling, he can contact any U.S. Housing and Urban Development (HUD) certified counseling agency.
3) In their written notice, lenders must clearly state that if the homeowner seeks housing counseling, the homeowner will receive an additional 30 day grace period.
4) Lenders cannot start foreclosure proceedings until they have provided this notice and allowed the counseling and grace periods, if applicable, to pass.
If you are in a situation where foreclosure on your home was initiated prior to April 9, 2009 (when the HPA was signed), it is too late for the protections of the HPA. Additionally, the law only applies to each loan once; if you default on a loan the first time, the HPA will apply. If you are able to work out a payment plan with the lender and default again, the HPA will not apply, and you will receive not further grace periods under the HPA. If the loan is not on your principal place of residence, it does not qualify under the HPA. Moreover, if you have applied for bankruptcy, the HPA will not apply.
Assuming you otherwise qualify for the protections of the HPA, keep in mind that this law will expire on April 8, 2011.
Thursday, December 24, 2009
Thursday, December 17, 2009
Illinois Down Payment Assistance Program!
For homeowners who are taking advantage of the Illinois Housing Development Authority's (IHDA's) Home Start program, down payment assistance may be available. The IHDA will loan you 3% of your purchase price, up to $6,000, if you meet certain criteria:
1) You must be a first-time homebuyer (unless you are a veteran).
2) You must qualify for and secure an IHDA 30-year fixed rate loan.
3) You must meet purchase price guidelines.
4) You must meet certain income requirements.
5) You must be willing to participate in homeownership counseling.
The IHDA's down payment assistance loan has zero percent interest, payable in 10 years. Moreover, the loan may be forgivable. For more information directly from the IHDA, click here.
Whether or not you qualify for this program does not affect your ability to receive the current $8000 tax credit for first-time homebuyers. For more information on that credit, click here.
1) You must be a first-time homebuyer (unless you are a veteran).
2) You must qualify for and secure an IHDA 30-year fixed rate loan.
3) You must meet purchase price guidelines.
4) You must meet certain income requirements.
5) You must be willing to participate in homeownership counseling.
The IHDA's down payment assistance loan has zero percent interest, payable in 10 years. Moreover, the loan may be forgivable. For more information directly from the IHDA, click here.
Whether or not you qualify for this program does not affect your ability to receive the current $8000 tax credit for first-time homebuyers. For more information on that credit, click here.
Thursday, December 10, 2009
Contractors and Lien Notices
Effective January 1, 2010, the Mechanics Lien Act shall be amended to require contractors to provide written notice to a homeowner within ten days after recording any lien against the home. This amendment applies specifically to contractors and owner-occupied single-family homes. Subcontractors and other types of homes are not covered by the amendment. Furthermore, the amendment only applies to contracts entered into after January 1, 2010.
The legislature intends the ten-day rule to be quite strict. If a contractor files a lien and fails to notify the owner of a single-family owner-occupied residence that a lien has been filed, the lien is extinguished to the extent of any actual damages the owner incurs as a result of the lien, so long as the damages were incurred before the contractor provides notice of the lien.
Residential contractors should take care to comply with this new law in order to preserve their liens!
The legislature intends the ten-day rule to be quite strict. If a contractor files a lien and fails to notify the owner of a single-family owner-occupied residence that a lien has been filed, the lien is extinguished to the extent of any actual damages the owner incurs as a result of the lien, so long as the damages were incurred before the contractor provides notice of the lien.
Residential contractors should take care to comply with this new law in order to preserve their liens!
Friday, December 4, 2009
New Tax Incentive Program for Vacant Buildings
Vacant buildings are taking a toll on county tax rolls. In order to encourage occupancy of vacant buildings, the Illinois legislature has approved Public Act 96-755 (HB 4120). Effective January 1, 2010, the legislature will grant local governmental authorities an incentive for abating any portion of property tax on a building that was vacant for at least 24 consecutive months prior to being occupied by a business.
In order for a local government to abate any portion of the property tax, a majority of its governing body must vote in the abatement's favor. The abatement cannot be for longer than two years, and the total tax abatement for all taxing districts involved cannot exceed $4 million dollars.
The legislature hopes that this new tax incentive program will encourage business-owners to buy and take over vacant buildings!
In order for a local government to abate any portion of the property tax, a majority of its governing body must vote in the abatement's favor. The abatement cannot be for longer than two years, and the total tax abatement for all taxing districts involved cannot exceed $4 million dollars.
The legislature hopes that this new tax incentive program will encourage business-owners to buy and take over vacant buildings!
Subscribe to:
Posts (Atom)
