Illinois Attorney General Lisa Madigan has announced that up to $3 million in funding from the national foreclosure settlement reached earlier this year is being targeted to fund new mortgage foreclosure mediation programs in counties where such programs currently do not exist.
‘Effective mediation programs are proven to give homeowners a fighting chance to save their homes,’ says Madigan. ‘Borrowers who've gone through foreclosure mediation have significantly better chances at receiving a loan modification and reaching a positive outcome.’
The funding will be available for multi-year grants to 501(c)(3) tax-exempt organizations that can demonstrate a capacity to run effective mortgage foreclosure mediation programs. According to Madigan's office, organizations applying for the funds must have a ‘solid plan for starting a mortgage foreclosure mediation program that incorporates meaningful access to housing counseling and pro bono legal representation for eligible borrowers, and a sustainability plan that includes a long-term funding plan either through a dedicated filing-fee add-on or another identifiable source.’
In addition to the foreclosure mediation funding commitment, Madigan is also announcing $20 million in grants for legal assistance programs. The remainder of the settlement funds received by the attorney general's office will be dedicated to programs and initiatives that will help to counteract the historic levels of foreclosure in Illinois through outreach to borrowers, housing policy development and community revitalization.