SPRINGFIELD – With Illinois facing record-high foreclosures amidst the growing nationwide housing crisis,  State Representative Ed Sullivan (R-Mundelein) took to the floor of the Illinois House of Representatives on Thursday to speak in favor of legislation that would help at-risk homeowners prevent going into foreclosure and losing their home. The legislation, HB 4191, passed the House of Representatives by a vote of 111-2 moments after Representative Sullivan, a co-sponsor of the bill, spoke in its favor.

The legislation would expand the “Our Own Home Program” administered by the Illinois State Treasurer’s Office by authorizing the Treasurer to work with financial institutions to help at-risk-of-foreclosure homeowners.  The goal of the program is to move at-risk borrowers out of sub-prime mortgage loans from predatory lenders into conventional loans from financial institutions.  If approved by the Senate and signed by the Governor, the bill would become effective immediately.

This bill would permit the Treasurer’s Office to pledge 10% of the loan amount for the first 5 years of the loan to assist the homeowner in being able to afford their mortgage. The State would lose money only if the borrower defaults.  To date, there has only been one default out of 357 loans administered by the program.

“With the growing nationwide housing crisis hitting close to home in communities all across Illinois, including right here in Lake County, it is imperative that we take immediate action to help homeowners,” Representative Sullivan said. “We cannot afford to sit back and wait for further action by the federal government. People are losing their homes at an alarming rate each and every day. It is critical that we do everything we can to help keep as many homeowners as possible from going into foreclosure.”