The document discusses resources for homeowners who are behind on their mortgage payments or facing foreclosure in Illinois. It outlines the state's Homeowner Protection Act, which provides a 90-day grace period during which foreclosure cannot begin. It warns homeowners about foreclosure rescue scams and advises homeowners to contact their lender or a HUD-certified counselor for assistance to avoid being victimized. The document also reviews options for homeowners such as loan modifications, short sales, and outlines the foreclosure process and rights of homeowners in Illinois.

1. Presented July 19,2011 Mario Pantoja, Director Illinois Department of Financial and Professional Regulation William Smirniotis Illinois Licensed Real Estate Broker

2. Who Owns My Loan? Determining if your mortgage is Fannie Mae http://loanlookup.fanniemae.com/loanlookup / Must verify that you are owner or have owner’s consent Determining if your mortgage is Freddie Mac https://ww3.freddiemac.com/corporate/ Must verify that you are owner or have owner’s consent

3. Homeowner Protection Act Law signed by Governor Quinn in April 2009 On Aug. 2, 2010, Gov extended HPA thru July 1, 2013 Gives consumers who fall behind on their mortgage payments a 90-day “grace period” during which the lender cannot begin foreclosure During the 90-day period, a consumer can, with the help of a housing counselor, negotiate a workout plan with the lender

4. HPA Eligibility At least 30 days behind on your mortgage payments Received a notification from your lender or servicer about your right to seek housing counseling Exercise your right to housing counseling and get the full 90 days! One-time only per mortgage

5. HPA Eligibility

6. Additional Protections On August 2, 2010, Governor Quinn signed the Save Our Neighborhoods Act of 2010. Lenders will pay a $50 fee when they file a foreclosure complaint in court Fees will go toward foreclosure prevention efforts, including grants to community-based groups to connect homeowners with counseling help and foreclosure prevention programs

7. Mortgage Fraud in Illinois

8. The Mortgage Fraud Task Force was established by the IDFPR to ensure that mortgage companies comply with the strict standards of conduct established by state laws Since its inception, the MFTF has taken disciplinary action against more than 150 persons and entities and assessed fines in excess of $2 million and conducted a regulatory sweep of more than 150 mortgage companies Homeowner Protection Initiatives

9. BEWARE of anyone who says they can “save” your home if you sign or transfer over the deed to your house DO NOT sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company and have YOUR OWN lawyer or housing counselor Beware of Foreclosure Rescue Fraud

10. Avenue of Broken Dreams South Side bungalow of 75-year-old woman was “stolen” by people she trusted “ Friends” persuaded her into signing documents, including the deed to home of 30 years IDFPR uncovered a slew of fraud and is actively battling to help woman keep her home

11. IDFPR Enforcement Successes 2007-Present

12. IDFPR Enforcement Successes MFTF wins 2010 CLEAR Investigative Excellence Award The Council on Licensure, Enforcement and Regulation (CLEAR) honored task force for its two-year “Avenue of Broken Dreams” investigation 2010

13. “ If it sounds too good to be true…” Do not offer or agree to sell your name and/or credit to help keep “someone else” from losing their home or purchase a home This is commonly referred to as “Straw Buying” but is better known as Fraud “ Thou shall not covet thy neighbors goods…” Many mortgage scam victims are approached by persons they know and trust through church and other religious activities Don’t Become a Victim to Predators

14. There is NEVER a fee to get assistance or information about the Making Home Affordable from your lender or a HUD-approved housing counselor BEWARE of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan Don’t Become a Victim to Predators

15. If you feel you have been duped during a residential loan transaction, or have paid someone for a loan modification file a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!! Or, by mail: IDFPR James R. Thompson Center 100 W. Randolph Street, 9th Floor Chicago, Illinois 60601 By phone: (800)-532-8785 Online: www.idfpr.com File a Complaint…TODAY!

16. Foreclosure A judicial proceeding by lender/servicer to obtain judgment against the borrower for his/her breach of promise to pay Lender/servicer takes borrower’s interest in the house, which was given as security for the promise Summons An order to appear in court to respond to the foreclosure complaint Do not ignore this information

17. What are my options? Refinance Pay off the entire mortgage New loan with affordable monthly payment Current employment is necessary Workout Lender/servicer agrees to new payment plan Can you afford the proposed plan? Seek legal advice before signing

18. Options Short Sale Agreement by lender/servicer to sell the property for less than is owed on a mortgage Deed in lieu Borrower surrenders property to lender to satisfy the loan and avoid foreclosure proceedings Does not satisfy junior liens Be aware of future liabilities! Seek legal and tax advice!

19. Options Apply for a modification through President Obama’s Making Home Affordable Plan Today begins this process Meet with a HUD approved counselor You have the ability today to meet with a counselor even if your lender is present

20. Options Graceful Exit HUD counselor can assist in this process Opportunity to rebuild your credit

21. Foreclosure Steps Court Hearing Borrower may appear in person or by a lawyer and contest the foreclosure If no appearance, a default judgment may be entered and all proceedings continue Many counties grant a continuance just for appearing in court.

22. Foreclosure Steps Reinstatement Within 90 days within the date of service, a borrower may reinstate the loan by fulfilling all payments, including fees and costs Loan continues as normal Public Auction If property is not redeemed, judicial sale is held like an auction

23. Foreclosure Steps In the end… If the property could not be saved, the foreclosure is completed Eviction Work with the lender for a graceful exit

24. Important Contact your lender/servicer as soon as you think you cannot make a payment, or contact a HUD-certified housing counselor in your community Do not ignore telephone calls or correspondence from your lender/ servicer. The sooner you call, the better. Lenders do not want your house. Do not seek assistance from individuals who make you an offer that is too good to be true

25. If you feel you have been duped during a residential loan transaction, file a complaint with the Illinois Department of Financial and Professional Regulation TODAY!!! Or, by mail: IDFPR James R. Thompson Center 100 W. Randolph Street, 9th Floor Chicago, Illinois 60601 By phone: (800)-532-8785 Online: www.idfpr.com File a Complaint…TODAY!