Chicago Home Foreclosures Up 16 Percent

By aaroncynic in News on Mar 16, 2010 7:00PM

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Image via the NPA's report

The foreclosure crisis is far from over, according to a new report released from National People’s Action, a grassroots research and organizing group in Chicago. The study shows that a home in Chicago was foreclosed on every 22 minutes throughout 2009, a total of 23,200 homes. This is a 16% increase since last year. The report also highlights foreclosure “hotspots,” pointing out the areas that have more than two new foreclosures per city block.

Senator Dick Durbin pointed out at a press conference yesterday that the foreclosure rate has an effect on the economy that spirals outward. Durbin said “With the unemployment rate now above 11 percent in Illinois, many families are facing difficulty making their mortgage payments. Even if they want to move, these families are stuck, because they often can’t pay off the mortgage even by selling the house. Far too often, foreclosure is the only option left.”

Unfortunately, there’s no clear cut way to solve the issue and legislators and banks aren’t being terribly helpful. Banks and legislators say things like “we’re doing the best we can,” but the NPA report points out that both have benefited from various bailouts while the majority of Americans have seen little aid come their way. The NPA calls for fixes to the country’s financial regulatory systems and giving more support to families in danger of foreclosure.