Illinois Department of Financial & Professional Regulation Illinois Department of Financial & Professional Regulation
 
Manuel Flores, Acting Secretary  
Pat Quinn, Governor
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If you are among the more than 57,000 Illinois homeowners who fell victim to the nation’s housing crisis, you may qualify for restitution as a result of a $1.2 billion settlement between Illinois ($25 billion nationally) and the five largest U.S. banks. Determine your eligibility based on three categories noted in the following table:
I missed at least one mortgage payment and my home is worth less than what I owe
What you may get: Principle reduction on your first and second mortgages or a loan modification that will lower your monthly mortgage payment. The principal reduction/modification fund is set at more than $924 million in Illinois.
Who is eligible: Borrowers who: 1) are at least 30 days behind on their mortgage payments or in imminent risk of default; 2) have a mortgage owned by one of the five participating banks or by a private investor; and 3) have a mortgage less than $417,000 in an owner-occupied house.
Who is not eligible: Anyone with a mortgage owned by Fannie Mae or Freddie Mac or a nonparticipating lender.
If you don’t qualify: Banks will offer funds to help people transition out of their homes and waive deficiency judgments on short sales.
 
My home is worth less than my loan and I am unable to refinance
What you may get: Mortgage refinancing to a lower interest rate that will be decided on a case-by-case basis. The fund for refinancing assistance is set at more than $114 million in Illinois.
Who is eligible: Borrowers who: 1) have a mortgage owned by one of the five participating banks; 2) owe more on their mortgage than what their home is worth; and 3) pay a mortgage interest rate of more than 5.25 percent.
Who is not eligible: Borrowers who: 1) have been late in making payments in the last 12 months; 2) had a bankruptcy or foreclosure in the past 24 months; or 3) have a loan owned by Fannie Mae or Freddie Mac.
 
I am a former borrower who lost my home to foreclosure
What you may get: $1,500 to $2,000 cash restitution
Who is eligible: Borrowers who: 1) had their mortgages serviced by one of the five participating banks; and 2) lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011.
What will happen: A settlement administrator will send you a form to determine if a mistake was made in the processing of your loan modification application or during the foreclosure process. The fund for foreclosure assistance is set at nearly $50 million in Illinois.
What you should do: The banks have lists of people they think may qualify, but the process of contacting you is expected to take several months. If you believe you qualify, contact the Illinois Attorney General’s Office to file a grievance form. Call 1-866-544-7151.
   
I am a U.S. veteran or a current servicemember who was a victim of the housing crisis
What you may get: In addition to possible cash payments, the banks also agree to undertake other activities, such as principal forgiveness, interest-rate-reduction refinancing, and forbearance during unemployment. The settlement also enhances protections available under the Servicemembers Civil Relief Act and provides additional assistance when Servicemembers are forced to sell their home at a loss due to reassignment to another location.
Who is eligible: Veterans, Servicemembers, and National Guard and Reserve members who: 1) had their mortgages serviced by one of the five participating banks; and 2) lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011.
What you should do: To get help, Veterans and Servicemembers – even those without a VA guaranteed loan – may call a national toll-free number, 1-877-827-3702 to speak with VA loan specialists who will provide information about the process of obtaining a VA-guaranteed home loan, or assistance in retaining their home loan or avoiding foreclosure. Information about the VA Home Loan Guaranty program is also available online at http://www.benefits.va.gov/homeloans
 
If you believe you are an eligible borrower contact your bank for assistance.

Call your bank at the toll free numbers below:

  • Bank of America: 1-877-488-7814
  • Chase: 1-866-372-6901
  • GMAC: 1-800-766-4622
  • Wells Fargo: 1-800-288-3212
  • CitiGroup: 1-866-272-4749
For more information, go to www.nationalforeclosuresettlement.com, or contact the Illinois Attorney General’s Office at: 1-866-544-7151.
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