Put mortgage plan in place

Commercial-News, Danville, IL

Published Friday, July 18, 2008

Whether Illinois residents find themselves directly involved in the growing national mortgage crisis or not, most have heard about the financial mess threatening to torpedo the nation’s economy.

Government officials on all levels are moving to present proposals for relief in an effort to keep families in their homes, prevent big losses by the banks and stabilize a shaky financial situation.

In Illinois, State Treasurer Alexi Giannoulias put together a self-financing foreclosure prevention bill that has passed both houses of the Legislature and awaits the governor’s signature.

It’s a move Gov. Rod Blagojevich should make soon in an effort to help as many residents facing financial dire straits as possible.

The bill calls for Giannoulias’ office to step in with assistance for residents whose adjustable rate mortgages are about to reset to a higher level.

The state treasurer will be able to guarantee 10 percent on the mortgage for five years at no cost to the lender or borrower as an incentive to switch to a conventional mortgage.

The program, called Finally Home, can be used to refinance an adjustable rate mortgage, to refinance a mortgage if a homeowner misses a payment due to a situation beyond their control but can afford to continue payments or to help buyers purchase a home if they do not qualify for a conventional mortgage.

Participants must meet certain income home and price guidelines.

Finally Home is not tied to the state budget and stands as a practical way for Illinois residents to stay in their houses and continue contributing to their communities.

Pick up the pen, governor. This bill is worth the effort.