The national mortgage foreclosure crisis is hitting Illinois families hard. In the 40th district, the foreclosure rate is one of the highest in the state. People are falling prey to mortgage rescue schemes all the time. The lack of education of mortgage lending and legitimate foreclosure assistance programs has only added to the growing problem.

Unfortunately we are seeing foreclosure rates grow as unemployment across the state grows. For most, the issue is not that they purchased too much house for what they could afford, but that the national economic crisis has changed their circumstances. As people are losing their jobs, it is harder to keep up with mortgage payments and other bills.

Recently, I had the privilege to host Mortgage Foreclosure Roundtable discussions in my district with special guest, Attorney General Lisa Madigan. The meetings included mortgage lending and fraud education for local elected officials, community leaders and ministers to provide information to local groups and congregations. After the education portion of the meeting, attendees were able to ask Attorney General Madigan and local experts questions regarding the foreclosure crisis.

Attorney General Madigan explained how people find themselves in foreclosure and the need for increased awareness of different mortgage rescue scams. She explained the first and most important step is to make the call for help. There are many U.S. Department of Housing and Urban Development (HUD)-certified counseling agencies across the state that will provide help at no cost.

Once you make the call for help, it only takes three simple steps to get out of foreclosure; gather information, develop a plan and present the plan.

Gathering information- Helps you to understand your current situation and how you got to that point. Information needed includes your current mortgage payment plan and any associated documents, creating a budget and verifying expenses. A hardship letter is also needed declaring the reason for default, general information on the home and the steps taken to fix the situation.

Developing a plan- Allows you to determine the best course of action to resolve your situation. There are several options to choose from including a repayment plan, modification, refinancing, a short sale or voluntary surrender of the property to the lender.

Presenting your plan- Permits you to negotiate with your lender and reach new terms. When presenting the plan to the lender, all the facts must be present as well as all the documentation you collected in step one. It is also important to know that the lender can be requested to stop proceedings during negotiations. If the lender does not agree to the plan then alternatives can also be requested.

It is imperative that legislators, local elected officials and community leaders spread the message that home foreclosure help is free and available. Getting in front of the foreclosure crisis is the only way to stop the growing trend we are seeing across the state. I urge anyone who is in need of help to contact the Attorney General’s Homeowner Helpline at 1-866-544-7151 or find a local HUD-certified counseling agency at