Home Mortgages and Home Foreclosure Fact Sheet

• In 2009 alone, foreclosures will cause 69.5 million nearby homes to suffer price declines averaging $7,200 per home and resulting in a $502 billion total decline in property values. During the period 2009-2012, the Center for Responsible Lending projects that foreclosures will cost 92 million U.S. families some $1.9 trillion in lower home values-an average of $20,300 in lost wealth per household. (Center for Responsible Lending)
• As of 2007, 68 % of all American families owned their own homes. Approximately 47% of African Americans and 50% of Hispanics owned their own home, compared to 75% of White, non-Hispanics. (U.S. Census Bureau)
• Children suffer when their family faces an economic crisis and home loss. Research indicates that children who face home loss are more likely to move from school to school. This school mobility is associated with poor educational outcomes and behavioral problems, and family economic stress is associated with poor health outcomes for children. (First Focus)
• As early as 2000, government agencies found that African American families living in upper income neighborhoods were more likely to receive sub-prime loans than white families living in low income neighborhoods. Neighborhoods formerly subjected to "redlining," where they couldn’t get any loans at all, became the victims of "reverse redlining," where predatory sub-prime lenders flooded minority neighborhoods with sub-prime loans. (Americans for Fairness in Lending)

Source: http://www.womeningovernment.org
Updated: June 2009

2009 First-Time Home Buyer $8,000 Tax Credit Update

Here are the 10 things you need to know about the improvements to the First-Time Home Buyer Federal Tax Credit:

1. The IRS tax credit refund can be made only to the taxpayer and not a third party.

2. Government agencies may offer tax credit advances with second liens.

3. The buyer cannot get cash back through the tax credit advance.

4. The 2nd lien may not exceed the down payment, closing costs, and prepaid expenses.

5. The 2nd lien may be "soft" or require payments.

6. Payments on 2nd liens must be included in ratios unless deferred for at least 36 months.

7. Balloon payments on 2nd liens may not be before 10 years.

8. FHA approved lenders and FHA approved non-profits may purchase the tax credit.

9. Tax credit purchaser may not charge more than 2.5% of the tax credit as a fee.

10. IRS may deduct from the tax credit: unpaid student loans, tax liens and garnishments.

Finally Home Financing Program

Finally Home is a free program offered through the State Treasurer's Office, in conjunction with participating financial institutions throughout the State of Illinois. 

Free Rent for CHA Senior Housing

Seniors 62 and older can get great housing and a free month’s rent with a rental housing choice that offers community, convenience and peace of mind in a Chicago Housing Authority rehabbed senior housing community.

Beginning in May, CHA will begin leasing fully rehabbed senior units in handsome, well-maintained apartments located in a variety of Chicago neighborhoods, where rent is more than 30% of their adjusted income. Seniors who sign a lease for CHA’s senior housing will receive one month free rent.

Click here to learn more.