The Illinois Housing Development Authority is working with BMO Harris Bank on a mortgage relief program for Rockford homeowners.
The state’s I-Refi program allows homeowners who owe more on a mortgage than their home is worth to refinance their loans based on a house’s current appraised value.
Spokesman Andrew Field says a lien would be placed on the homes of participants so they couldn’t sell immediately but, after three years, they would be free to cash out.
“The housing stock is limited, so there’s a lot of people there that probably want to get out eventually, and this is going to help them actually sell their home in a couple years, because they’ll be able to buy down. They’re not underwater. They’re not going to lose a lot of money on their home.”
Field says on average, participants save about $365 on their monthly premiums.
IHDA is holding an informational session on the I-Refi program in Rockford. BMO Harris Bank lenders will be on hand to walk potential homeowners through the program.
The event takes place tonight at Katie’s Cup at 5:30.