Struggling homeowners in the Chicago area can get guidance on how to apply for lower mortgage payments through a federal affordable-housing program at a workshop later this month.

The Illinois Housing Development Authority will host a free financial-counseling session for the homeowners Aug. 29 in Cicero, according to a statement from the governor's office.

Counselors certified by the U.S. Department of Housing and Urban Development and pro-bono real-estate attorneys will review paperwork to determine if borrowers qualify for the lower payments.

Qualified homeowners may complete an application for a loan modification under the federal Making Home Affordable Plan, and send it directly to their loan provider from the Keep Your Home event in Cicero. Borrowers may reduce their payments to as little as 31 percent of their gross monthly income, according to the statement.

Earlier this year, Gov. Pat Quinn signed the Homeowner Protection Act, which established a 90-day grace period on mortgage foreclosures for homeowners who begin such counseling.

To qualify for lower mortgage payments through the federal program, homeowners must have fallen behind on their payments, own a one- to four-unit property, owe no more than $729,750 on a single-family home, have a loan that originated before January 1, 2009, and earn an income that will support monthly mortgage payments.

Homeowners must bring copies of the following documents to the Keep Your Home event:

• proof of current income for all borrowers listed on the mortgage, including two most recent pay stubs;
• their most recent tax return (2008 tax return with all schedules and W-2s);
• their most recent mortgage statements for both first and second mortgage (if applicable);
• their two most recent bank statements;
• account balances and monthly payments on all other debts, including property taxes, homeowner association or condominium fees, credit cards, student or car loans, child support and alimony;
• proof of income from sources such as alimony, child support (judgment letter), Social Security (award letter), or profit and loss if self-employed;
• proof of homeowner's insurance; and
• their most recent utility bill.

IHDA, the state’s housing-finance agency, is partnering with the Neighborhood Housing Services of Chicago, the Chicago Community Trust, West Suburban communities and the Attorneys’ Title Guaranty Fund to present the Keep Your Home event.

It is from 10 a.m. to 1 p.m. at the Cicero Community Center, 2250 S. 49th Ave.

For more information, visit www.ihda.org, www.nhschicago.org and www.makinghomeaffordable.gov.