CHICAGO FORECLOSURES UP - BUT HELP IS AVAILABLE!
CITY FORECLOSURES UP 34.8% OVER 2006!
In the City of Chicago IL, there were 6,329 foreclosures during the first half of 2007, versus 4,695 for the same period last year. Many were brought on by loss of a job, or personal financial hardship - unanticipated medical expenses, for example. A shocking statistic, however, indicates that 55% of these foreclosures occur within the first 24 months of the loan term.
"Should those loans have been made in the first place?" asks Michelle Rodriguez Taylor, a Community Reinvestment Organizer for the non-profit National Training and Education Center.
Until the mid-1990's, most mortgage loans were made by local banks. Now, many loans are being originated by independent Mortgage Brokers. Although most Mortgage Brokers work very professionally, an unethical few enticed borrowers with challenged credit on low "introductory rates", and high-leverage programs. Many of these higher-risk programs, offered as recently as one year ago, are resetting now, at far higher interest rates, and borrowers are finding themselves unable to pay the resulting higher monthly mortgage payments.
Fortunately, in 2004, the Illinois Coalition Against Predatory Lending backed licensing of loan officers. Today, many of the unscrupulous practitioners have left the business. But their former customers are feeling the sting!
When faced with foreclosure, many borrowers first ignore the notices. Not smart, says Molly Sullivan, spokes person for the Chicago Department of Housing. "The bill collector is eventually going to find you," she continues.
No neighborhood in Chicago is immune to foreclosures. Our daily Foreclosure Search reveals new foreclosure filings in such prestigious Chicago neighborhoods as Lincoln Park, Lakeview, Norwood Park, Edgebrook, and The Gold Coast. Sometimes, dozens of properties each business day!
To help those that need it, the City of Chicago is sponsoring Borrower Outreach Day, at the Humboldt Park Fieldhouse, 1400 N. Sacramento Avenue, in Chicago, this Saturday, December 1st, from 9:00 AM to 2:00 PM. In attendance will be representatives from several large financial institutions, the Chicago Department of Consumer Services, city housing counselors, and other professionals to offer personal advice and counsel. Although walk-ins will be welcome, advance appointments are suggested. Contact the City of Chicago Department of Housing, at 312-744-8514.
Please check out the full article in the Lakeview Booster, in this article written by Mark Lawton, Staff Writer.
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