Chicago is the 3rd most populous state in the United States and is an energetic city that attracts millions of tourists and settlers every year. Chicago foreclosure homes were flooding the market, especially spiking in activity in April 2010. Chicago foreclosures are increasing because of increasing unemployment and government is taking measures like reducing monthly mortgage payments to ensure that home owners can avoid foreclosures.
Chicago known as the “windy city’is probably the most populous city of their state of Illinois. It’s known for its musical roots (Chicago Blues) along with rocking theatre scene. Situated on the banks of the Michigan, it has several 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 compared to 2008. The city saw a fresh foreclosure filing every 22 minutes. The agency stressed on the requirement for a powerful consumer protection organization to stop abuses such as predatory lending that caused the housing crisis.
Experts point out that the situation of foreclosures has spilt over from one caused by predatory lending to that of an unemployment crisis. Chicago mortgage rates Foreclosures are no longer led by predatory lending but have evolved into an unemployment problem that has seeped into Chicago neighborhoods.
Based on the report significantly more than 23,000 homes were declared as Chicago foreclosure homes last year. People who managed to keep their properties saw a massive loss in value of the property. An average Chicago home owner lost around $ 27,000 in home value compared to prices five years back
The NPA suggest policies that’ll keep families of unemployed in 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 only option. Chicago Foreclosure homes are hence on the rise.
One alternative may be the Home Affordable Modification Program. The HAMP program that came in last year seeks to reduce at risk borrower’s monthly mortgage payments. The report suggests allowing individuals with home mortgages to get exactly the same concession allowed for investment properties and vacation homes. Also it would give a loan or a grant to simply help unemployed home owners.