Chicago is the 3rd most populous state in the United States and is a radiant city that attracts millions of tourists and settlers every year. Chicago foreclosure homes were flooding industry, especially spiking in activity in April 2010. Chicago foreclosures are increasing as a result of increasing unemployment and government is taking measures like reducing monthly mortgage payments so that home owners can avoid foreclosures.
Chicago called the “windy city’is the most populous city of their state of Illinois. It is known for its musical roots (Chicago Blues) in addition to rocking theatre scene. Situated on the banks of the Michigan, it has numerous activities like boating to scuba diving. Additionally it boasts of famous museums and shopping arenas that attract tourists by the drove.
Real estate agents, investors and home buyers are attracted by property in Chicago, especially Chicago foreclosure homes which are available at concessional rates. With a population approaching 3 million, Chicago is an increasing foreclosure market.
The National People’s Action’s 2009 Chicago Foreclosure Report painted a dismal picture of Chicago property market and stated that the Foreclosure crisis was still raging in Chicago. Foreclosures in Chicago were up by 16% in 2009 in comparison to 2008. The city saw a fresh foreclosure filing every 22 minutes. Chicago mortgage expert The agency stressed on the necessity for a powerful consumer protection organization to stop abuses such as for instance predatory lending that caused the housing crisis.
Experts mention that the problem of foreclosures has spilt over in one due to predatory lending to that particular of an unemployment crisis. Foreclosures are no longer led by predatory lending but have evolved into an unemployment problem that’s seeped into Chicago neighborhoods.
According to the report more than 23,000 homes were declared as Chicago foreclosure homes last year. Those who managed to keep their properties saw a massive loss in value of these property. A typical Chicago home owner lost around $ 27,000 in home value in comparison to prices five years back
The NPA suggest policies that’ll keep families of unemployed within their homes. With unemployment about 11% in Illinois, many families are facing difficulty making their mortgage payments. Many families cannot pay up their mortgage even by selling their homes. Thus foreclosure is the sole option. Chicago Foreclosure homes are hence on the rise.
One alternative may be the Home Affordable Modification Program. The HAMP program that came in a year ago seeks to cut back at risk borrower’s monthly mortgage payments. The report suggests allowing people with home mortgages to have the exact same concession allowed for investment properties and vacation homes. Plus it would give a loan or even a grant to greatly help unemployed home owners.