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 market, 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 so that home owners can avoid foreclosures.
Chicago known as the “windy city’ is 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 a number of activities like boating to scuba diving. It also 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 real estate market and said 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 new foreclosure filing every 22 minutes. The agency stressed on the need for a strong consumer protection organization to prevent abuses such as predatory lending that caused the housing crisis.
Experts point out that the problem of foreclosures has spilt over from one caused by predatory lending to that of an unemployment crisis. Foreclosures are no longer led by predatory lending but have evolved into an unemployment problem that has 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 their property. An average Chicago home owner lost around $ 27,000 in home value compared to prices five years back
The NPA suggest policies that will 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 is 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 people with home mortgages to get the same concession allowed for investment properties and vacation homes. Also it would give a loan or a grant to help unemployed home owners.
Chicago foreclosures are on the rise so try to avail all possible benefits from government schemes to avoid foreclosure.