If a foreclosure mediation program in Illinois helps you avoid foreclosure, you can thank the homeowners who went through foreclosure during the housing crash for the opportunity to save your home. Illinois attorney general Lisa Madigan (Democrat) plans to use the $5 million in grants from the national foreclosure fraud settlement to “fund the creation and implementation of new mortgage foreclosure mediation programs” in her state. “Because mediation has been proven to give homeowners a greater chance to save their homes, these grant funds will help both families and communities that have been devastated by the foreclosure crisis,” Madigan said.
It does not appear that any part of the $5 million will go to homeowners harmed during the housing crisis by improper foreclosure procedures unless they have managed to hold on long enough to benefit from the new counseling programs. However, Madigan has used some other foreclosure settlement funds to provide “legal aid services for renters and homeowners in distress” and “has solicited proposals for $70 million in settlement funding to be put toward community redevelopment and housing counseling projects”. Madigan believes that this is the best way to directly counteract the damage done by foreclosure abuse in her state. Do you agree? Should the homeowners who were actually harmed by the big banks get any compensation?
Your comments and questions are welcomed below.