Foreclosure Relief for Illinois Homeowners: Take 90 Days to Get Your “Financial House” In Order

The governor of Illinois, Pat Quinn, recently signed legislation that gives struggling homeowners a 90-day grace period before the foreclosure process can officially begin. Here’s how the 90-day period allotted breaks down:

1st 30 days: If a homeowner is 30 days late, the lender can’t begin the foreclosure process.

2nd 30 days: In addition to not being able to start the foreclosure process, lenders are required to inform delinquent homeowners that they have 30 days to get credit counseling; if they don’t, then the lender can start the foreclosure process.

3rd 30 days: Homeowners who decide to get credit counseling are allotted an additional 30 days to put together a financial plan and present it to their lender. The caveat is, the credit counseling they seek must be approved by the HUD (the Department of Housing and Urban Development).

For more on this topic, read the HuffingtonPost.com article Foreclosure Grace Period Bill Signed Into Law.

What do you think? Is this a good idea? Will it help many homeowners stop foreclosure?

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