Making informed decisions about your hard-earned dollars is what Money Smart Week is all about.

But, for many people, the past few years have challenged even the most disciplined and frugal Illinois homeowners. Lower wages and record unemployment have taken a toll on the American Dream of owning a home.

The Mortgage Relief Project offers property owners on-site assistance to rework their mortgages and prevent foreclosure. Homeowners who have recently fallen behind on their mortgage payments can obtain a 90-day grace period by entering housing counseling, according to the Homeowner Protection Act, which was signed into law last spring by Governor Quinn. Property owners can exercise their rights during Mortgage Relief Project outreach events, which are administered by the Illinois Department of Financial and Professional Regulation and the Illinois Housing Development Authority.

“By participating in this event, homeowners can literally save their homes,” said Brent E. Adams, Secretary of Financial and Professional Regulation. “The Mortgage Relief Project provides direct, tangible, and free assistance to homeowners.”

“We partner struggling homeowners with financial counselors who assist them in getting the resources they need to keep their homes,” said Gloria L. Materre, IHDA Executive Director.

The Chicago event is hosted by State Senator Jacqueline Y. Collins (D-Chicago), State Representative André Thapedi (D-Chicago), and State Representative Mary E. Flowers (D-Chicago). It’s the 10th stop in a statewide tour that began last summer.

The free workshops will be held from 9 a.m.-1 p.m. on Saturday, April 17, 2010, at Kennedy-King College at 6301 South Halsted Street in Chicago. The free workshops will offer helpful advice about mortgage refinancing, foreclosure prevention, legal rights, credit counseling and avoiding scam artists. Homeowners can also obtain private, one-on-one housing counseling with HUD-certified counselors. Be sure to bring your latest mortgage documents (bills, statements, notices, etc.), two most recent paystubs, and your state ID or driver’s license. For an itemized list of all the documents that you would need to complete a full application for a loan modification, go to Mortgage Relief Project Document Checklist.

The Homeowner Protection Act establishes a grace period of up to 90 days on mortgage foreclosures for homeowners that enter housing counseling.

The Act requires that all lenders and loan servicers notify homeowners who are at least 30 days late on their mortgage payments that they have 30 days to seek housing counseling to get their loan back on track. If a homeowner enters housing counseling, they get an additional 30-day grace period on foreclosure in order to work out a payment plan or refinance option.

For more information or to receive immediate assistance in advance of the April 17th event, please call IDFPR’s toll-free consumer hotline (800) 532-8785 during regular business hours or visit www.idfpr.com or www.ihda.org.  A list of HUD-approved housing counseling agencies in Illinois can be found at www.hud.gov.

Mortgage Relief Project Testimonials

• “I’m very positive about the Mortgage Relief Project. The program helped me receive a loan modification from my lender.”
  --Mr. M.H., Chicago’s Far Northwest Suburbs (Lake County)

• “The Mortgage Relief Project made a big difference for me. My lender would not work with me before I attended the event.”
  --Mr. M.W, Southwestern Illinois (Metro East Area)

• “I received outstanding customer service (at the outreach event). The housing counselor was attentive to my details. She made me feel as if help is on the way.”
  --Mr. C.S., Chicago’s South Suburbs

• “The housing counselor was very helpful to me in reviewing my materials. Staff members were open and friendly and the program was very informative.”
  --Ms. H.V., Central Illinois

• I received confirmation that what I am doing the correct thing to do (to prevent foreclosure).”
  --Anonymous, Southwestern Illinois