Imagine up to $50,000 for your goals or unexpected needs, directly in your account, without the wait.
Apply Now & Get Fast Funding!
On this page:
For Illinois homeowners facing financial hardship, the search for an Illinois mortgage relief program can feel urgent and overwhelming. While the primary federally funded program established in response to the pandemic, the Illinois Homeowner Assistance Fund (ILHAF), is now closed to new applications, this does not mean that help is unavailable.
A robust network of state agencies, local governments, and non-profit organizations continues to provide critical support. This includes direct financial assistance, free professional counseling, and legal aid to help homeowners avoid foreclosure. Understanding the current landscape of available resources is the first step toward securing your home.
A New Landscape for Mortgage Assistance
The closure of the Illinois Homeowner Assistance Fund (ILHAF) marks a significant shift in the state's mortgage relief landscape. Administered by the Illinois Housing Development Authority (IHDA), ILHAF was a large-scale grant program that provided a crucial lifeline to thousands of households impacted by the COVID-19 pandemic. Its conclusion has created a new reality for homeowners seeking aid.
The previous model of applying for a single, centralized federal grant has been replaced by a more varied system of support. This new approach requires navigating different agencies and programs. However, the state's housing support infrastructure is deep and multifaceted, offering ongoing assistance through various channels.
The Importance of Established Resources
Agencies like the Illinois Department of Human Services (IDHS) and numerous county-level programs offer ongoing assistance. Furthermore, a statewide network of HUD-approved housing counseling agencies provides expert guidance at no cost. These agencies serve as the most effective starting point for any homeowner in distress. The path to mortgage relief in Illinois now relies on connecting with these established, long-term resources designed to provide personalized solutions.
To effectively navigate the current options, it is helpful to understand the major relief programs of the recent past. These programs were temporary, large-scale responses to specific national crises. Their history explains why the focus has now shifted to more permanent, institutionalized support systems.
The Illinois Homeowner Assistance Fund (ILHAF)
ILHAF was created as a direct response to the economic fallout of the COVID-19 pandemic, funded by the federal American Rescue Plan Act of 2021. The program was designed to prevent mortgage delinquencies and foreclosures for homeowners who experienced financial hardship after January 21, 2020. Administered by IHDA, ILHAF successfully awarded over $298.6 million to help 16,845 Illinois households remain in their homes.
The assistance was provided as a grant, not a loan, and could be used for a variety of housing-related costs. Initially, the maximum grant was $30,000 per household, but this was later doubled to $60,000 to meet ongoing needs. After exhausting its federal funding, the ILHAF program officially stopped accepting new applications on October 31, 2023.
The Illinois Hardest Hit Fund® (HHF)
The Illinois Hardest Hit Fund® (HHF) was an earlier program established in response to the 2008 financial crisis. The U.S. Department of the Treasury provided funds to states like Illinois that were hit particularly hard by unemployment and home price declines. Administered by IHDA, the HHF program provided mortgage assistance to homeowners who had suffered a significant income reduction due to a qualifying event.
Assistance through HHF was structured as a five-year forgivable loan, with a lien placed on the property. The program offered reinstatement assistance to catch up on arrears and monthly mortgage payment assistance for up to 12 months. All HHF assistance ended by March 31, 2022, and the program is now closed.
While the large federal funds have closed, direct financial assistance is still available through several state and local programs. These resources are often more targeted and require working through specific provider agencies.
Illinois Department of Human Services (IDHS) Homeless Prevention Program
One of the most significant active resources is the Homeless Prevention Program, managed by the Illinois Department of Human Services (IDHS). This program is designed to stabilize individuals and families in their homes and provides direct financial assistance for mortgage payments to prevent foreclosure.
To be eligible, a household must be in immediate danger of foreclosure, document a temporary economic crisis, and demonstrate an ability to meet future mortgage obligations after assistance is granted. The total aid cannot exceed the value of six months' worth of the homeowner's mortgage payments. To access this help, homeowners must contact a designated Homeless Prevention Provider in their area.
Local and County-Level Support
Mortgage assistance in Illinois often varies by county and municipality. Homeowners should investigate programs in their specific location.
Assistance with Related Housing Costs
Reducing other major household expenses can free up critical funds for a mortgage payment. Several programs in Illinois can help with these related costs:
For any Illinois homeowner struggling with their mortgage, the single most crucial first step is to contact a HUD-approved housing counseling agency. These non-profit organizations provide expert, confidential advice and advocacy completely free of charge. A housing counselor acts as a homeowner's personal financial guide and advocate.
The services provided by a certified housing counselor are comprehensive and include:
Connecting with a counselor immediately provides a homeowner with a knowledgeable partner. Reputable counselors can be found through the U.S. Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau (CFPB).
| Agency Name | Primary Service Area(s) | Phone Number | Website |
|---|---|---|---|
| Center for Changing Lives | Chicago | 773-342-6210 | cclconnect.org |
| South Suburban Housing Center | South Cook County | 708-957-4674 | southsuburbanhousingcenter.org |
| The Neighbor Project | Aurora, Kane County | 630-906-9400 | neighborproject.us |
| C.E.F.S. Economic Opportunity Corp. | Effingham, Clay, Fayette, Shelby, Moultrie, Christian, Montgomery Counties | 217-342-2193 | cefseoc.org |
| Madison County Urban League | Madison County | 618-463-1906 | madcoil.org |
| Macoupin County Housing Authority | Macoupin County | 217-854-8606 | teamhousingcenter.com |
| CEDA of Cook County, Inc. | Cook County | 800-571-2332 | cedaorg.net |
| Will County Center for Community Concerns | Will County | 815-722-0722 | wcccc.net |
| Northside Community Development Corp. | Chicago (North Side) | 773-262-2290 | northsidecdc.org |
| HANA Center | Chicago, Prospect Heights (Korean, Spanish, English services) | 773-583-5501 | hanacenter.org |
| Housing Action Illinois | Statewide Network/Referrals | 312-939-6074 | housingactionil.org |
| NHS of Chicago | Chicago | 773-329-4111 | nhschicago.org |
Financial relief does not always come from an external grant program. Often, the most sustainable solutions are worked out directly with the mortgage lender through a process called "loss mitigation." Lenders are often willing to work with homeowners who communicate proactively about their hardship.
Key Loss Mitigation Options
Foreclosure is a formal legal process, and homeowners have specific rights and protections under Illinois law. When facing legal notices from a lender, it is vital to understand these rights. The Illinois Attorney General's office provides summaries of homeowner rights and lender obligations.
Free Legal Services
Several respected non-profit organizations across the state provide free (pro bono) legal services to low-income individuals to help them navigate the foreclosure process. These organizations can ensure lenders follow proper procedures and can represent homeowners in court.
In some counties, court-ordered mediation is available. This provides a structured environment where a neutral third party helps the homeowner and lender attempt to reach a mutual agreement to resolve the foreclosure case.
In times of financial distress, homeowners are particularly vulnerable to predatory scams. These fraudulent operations often charge excessive fees for false promises of saving a home from foreclosure. It is critical to recognize the warning signs.
How to Spot a Scam
The single most important rule is that you should never have to pay for foreclosure assistance from a housing counseling agency. Be wary of any company or individual that:
If you encounter a suspected scam, report it immediately. You can file a complaint with the Illinois Department of Financial & Professional Regulation (IDFPR) at 1-844-768-1713 or with the Consumer Fraud Bureau of the Illinois Attorney General's Office.
While the closure of large-scale programs like ILHAF has changed how mortgage relief is accessed in Illinois, a strong and effective support network remains firmly in place. The current system emphasizes personalized, expert-led solutions through state and local assistance programs, direct negotiations with lenders, and free legal aid.
For any homeowner feeling overwhelmed by the threat of foreclosure, the path forward begins with a single, clear action. Do not wait for the situation to worsen. Contact a free, HUD-approved housing counselor today to get the expert guidance, advocacy, and support needed to navigate your options.
Since the Illinois Homeowner Assistance Fund (ILHAF) closed, there isn't a single replacement program. Instead, a network of HUD-approved housing counseling agencies now provides the primary support. These agencies offer free, expert guidance on foreclosure prevention, lender negotiations, and accessing local mortgage assistance funds tailored to your situation.
Yes, help is still available. Foreclosure prevention counselors specialize in creating action plans for homeowners facing income loss. They can connect you with local programs and help you negotiate forbearance or other loss mitigation options with your lender while you seek new employment, providing a crucial bridge during financial hardship.
A HUD-approved counselor will confidentially review your finances, explain your options, and act as a liaison with your mortgage servicer. They help you prepare necessary documents and apply for any available mortgage assistance. This free service is designed to create a clear plan to help you avoid foreclosure.
While no statewide mortgage relief program is dedicated solely to property taxes, assistance is available. The Senior Citizens Real Estate Tax Deferral Program and various county-level exemptions can help. A housing counselor can also incorporate delinquent property taxes into a broader mortgage workout plan with your lender.
The fastest and most effective first step is to immediately contact a HUD-approved housing counseling agency in Illinois. They can assess your situation promptly and advise you on the quickest path to a solution, whether it's direct negotiation with your lender or applying for an emergency assistance program.
Yes, several programs are geared toward seniors. Besides property tax deferrals and exemptions, housing counselors can connect seniors with local grants or programs that provide mortgage assistance. They can also help explore options like a reverse mortgage if it's a suitable financial tool for the homeowner's situation.
Typically, you will need your most recent mortgage statement, proof of income (pay stubs, benefits statements), recent bank statements, a list of monthly household expenses, and any correspondence from your lender. A housing counselor can provide a specific list and help you organize your paperwork for applications.
Absolutely. It is critical to seek help immediately after receiving a foreclosure notice. Free legal aid services and HUD-approved counselors can help you understand your rights, respond to the notice, and negotiate with your lender. Acting quickly is key, as you have a limited time to explore options.
The type of assistance varies. Support from local non-profits or certain government programs may be a grant that does not require repayment. Other solutions, like a loan modification, involve changing the terms of your existing loan. A counselor can help you find and understand the specific types of aid available.
Always start with official sources. Legitimate assistance is almost always free. Find a certified counselor through the HUD or CFPB websites. Be wary of anyone guaranteeing to stop a foreclosure or demanding upfront fees. The Illinois Attorney General's office is a key resource for reporting and avoiding these scams.
In times of crisis, families face immense vulnerability, often losing the safety and stability of their homes. Emergency shelters offer a vital lifeline, providing not just a roof overhead but also a beacon of hope and support to navigate the darkest of days.
For pet owners struggling to make ends meet, the cost of cat litter can be a significant burden. Fortunately, there are programs designed to help low-income families access this essential pet supply for free.
Securing capital is the biggest hurdle for creating new communities, and government grants for affordable housing offer the most direct path to financing your development project without accruing massive debt. Unlock the competitive funding programs that make construction, rehabilitation, and long-term housing preservation financially possible for developers and non-profits today.