Chicago is the third most populous state in the United States and is a vibrant city that attracts millions of tourists and settlers every year. Chicago foreclosure homes were flooding the marketplace, especially spiking in activity in April 2010. Chicago foreclosures are increasing due to 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 the state of Illinois. It is known for its musical roots (Chicago Blues) as well as rocking theatre scene. Situated on the banks of the Michigan, it has several activities like boating to scuba diving. In addition 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 a growing foreclosure market.
The National People’s Action’s 2009 Chicago Foreclosure Report painted a dismal picture of Chicago property 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. The town saw a brand new foreclosure filing every 22 minutes. The agency stressed on the necessity for a powerful consumer protection organization to stop abuses such as for example predatory lending that caused the housing crisis.
Experts point out that the situation of foreclosures has spilt over in one brought on by predatory lending compared to that of an unemployment crisis. Foreclosures are no further 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. Those that managed to help keep their properties saw an enormous loss in value of their property. The average 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. Chicago mortgage expert Thus foreclosure is the only real option. Chicago Foreclosure homes are hence on the rise.
One alternative is the Home Affordable Modification Program. The HAMP program that came in this past year seeks to cut back in danger borrower’s monthly mortgage payments. The report suggests allowing people with home mortgages to get the same concession allowed for investment properties and vacation homes. Also it would give a loan or even a grant to simply help unemployed home owners.