Chicago is the third most populous state in the United States and is a vibrant city that attracts countless tourists and settlers every year. Chicago foreclosure homes were flooding the marketplace, 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 to ensure that home owners can avoid foreclosures.
Chicago referred to as the “windy city’is the most populous city of their state of Illinois. It is noted for its musical roots (Chicago Blues) along with rocking theatre scene. Situated on the banks of the Michigan, it’s numerous activities like boating to scuba diving. Additionally it boasts of famous museums and shopping arenas that attract tourists by the drove.
Property agents, investors and home buyers are attracted by property in Chicago, especially Chicago foreclosure homes which can be found 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 real estate market and said that the Foreclosure crisis was still raging in Chicago. Foreclosures in Chicago were up by 16% in 2009 in comparison to 2008. Chicago mortgage expert The town saw a new foreclosure filing every 22 minutes. The agency stressed on the necessity for a solid consumer protection organization to prevent abuses such as for instance predatory lending that caused the housing crisis.
Experts point out that the problem of foreclosures has spilt over from 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 may 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 real option. Chicago Foreclosure homes are hence on the rise.
One alternative could be the Home Affordable Modification Program. The HAMP program that came in a year ago seeks to reduce at an increased risk borrower’s monthly mortgage payments. The report suggests allowing people with home mortgages to obtain exactly the same concession allowed for investment properties and vacation homes. Also it will give a loan or perhaps a grant to greatly help unemployed home owners.