In the state of Illinois many homeowners are given an opportunity to avoid foreclosure once again with a 90 day grace period provided the struggling homeowners discuss the loan with a housing counselor and their lender. There are options to modify mortgages through the Obama’s Making Home Affordable program. The program hopes to enable 9 million homeowners to refinance their loans or get them modified.

Thos who qualify to have their loans modified will need to have either lost their job or show an increase in costs of living, are unable to pay their mortgage that exceeds more than 31 percent of their mortgage payment, and owe less than $730,000 on their home. The homeowner will need to provide documentation to enable the modification of their loan by bringing paperwork showing assets, income, bank statements, tax papers, and a letter stating why they cannot afford to continue to pay their mortgage.

For those that are going through the 90 day grace period to avoid foreclosure in Illinois will need to meet with their lender and housing counselor in order to receive the extra time to avoid the final foreclosure. If they don’t meet with a counselor they will not be granted the extra time to avoid foreclosure.