Bank Foreclosure Settlement
After months of investigation and negotiations, Attorney General Lisa Madigan, in conjunction with other state attorneys general, the U.S. Department of Justice and the U.S. Department of Housing and Urban Development, secured a settlement with the nationís largest banks that has provided $25 billion in assistance to homeowners harmed by fraudulent foreclosure and mortgage servicing practices. The settlement is the second largest ever obtained through joint action of state attorneys general.
Besides providing much-needed mortgage relief for homeowners in Illinois and across the country, the settlement set tough new mortgage servicing standards aimed at preventing future abuses by mortgage lenders in the foreclosure and servicing process and avoiding the bureaucratic nightmare many consumers have faced in trying to save their homes through loan modifications.
To assist homeowners in determining if they may be eligible for assistance according to the settlement, Attorney General Madiganís office developed the resources listed below. Consumers are also encouraged to call Attorney General Madigan's Homeowner Helpline (1-866-544-7151) for help. To receive updates about the bank foreclosure settlement as more information becomes available, please sign up for e-alerts.
Attorney General Lisa Madigan dedicated $70 million in funding from the national foreclosure settlement for housing counseling services and relief efforts for Illinois communities fraught with vacant and abandoned properties that have been hardest hit by foreclosure.
The funding allocations, which are outlined in this report, were determined by the Attorney Generalís Blue Ribbon Advisory Council of housing and community development experts from Illinoisí non-profit, government and private sectors. The Council focused awards on areas of the state that showed significant need based on foreclosure and vacant housing data. For more information on how this funding has been distributed, see Foreclosure Prevention Assistance and Community Revitalization Awards.
For reference, review the previously posted request for proposals and application/Appendix A for more information on eligibility for awards. Additionally, for more information about the settlement and the funding selection process, refer to the February 1 webinar presentation that provides additional background and guidelines regarding the Request for Qualifications and Proposals.
Additional Information and Resources on the National Foreclosure Settlement
Bank Foreclosure Settlement Overview (En EspaŮol)
The settlement overview explains how the settlement helps struggling homeowners, including those who are at imminent risk of default. It also details ground-breaking new servicing standards that will permanently change the way banks handle foreclosures and instill transparency and integrity into the process.
Illinois Homeowner & Community Benefits to Date
See how Illinois borrowers and community revitalization organizations benefitted from the national foreclosure settlement, including direct relief and assistance awards.
Foreclosure Prevention Assistance Programs for Illinois Residents (En EspaŮol)
Learn about the many programs available to assist distressed homeowners in Illinois.
Which Foreclosure Program is Right for Me?
A guide to help Illinois homeowners determine their eligibility for mortgage and foreclosure assistance programs.
Attorney General Madigan Fights Mortgage Fraud Piece by Piece
The housing collapse and subsequent economic meltdown was not caused by a single factor but the result of misconduct in many areas of the banking sector. See a visual layout of the various actors who contributed to the economic collapse and learn what Attorney General Madigan is doing to hold them accountable.
Overview of Attorney General Madiganís Efforts to Combat the Foreclosure Crisis
Even before the housing marketís collapse became evident, Attorney General Madigan fought to take strong legal action against lenders, banks, servicers and others who contributed to the housing and economic collapse, as well as to provide relief and assistance to Illinois families struggling to save their homes. Read about Attorney General Madiganís efforts to address the foreclosure crisis.
Attorney General Madiganís Help for Homeowners page also offers a range of mortgage-related resources, whether youíre a borrower at risk of default or a consumer seeking a loan. Consult this page for additional information.
Visit www.NationalMortgageSettlement.com for more information about the national settlement.
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