Chicago Mayor Rahm Emanuel recently announced a program that will help neighborhoods that have been significantly impacted by Chicago foreclosures. The goal of the program - the Micro-Market Recovery Program - is to create a loan pool from the John D. and Catherine T. MacArthur Foundation and private capital.
The loan money would be used to reoccupy 2,500 foreclosed houses in the distressed neighborhoods. Money would be available to help homeowners who are currently facing underwater mortgages as well as buyers and developers interested in the properties.
The Chicago neighborhoods involved in the program include:
- Chicago Lawn
- Grand Boulevard
- Humboldt Park
- West Pullman
- West Woodlawn
Banks Must Cooperate
Under this program, banks would be asked to invest in the loan pool and renovations. They may also be asked to turn the homes over to the city for remodeling.
This comes just weeks after the Chicago Vacant Buildings Ordinance was passed unanimously by the City Council. That ordinance requires banks to upkeep the vacant homes for which they are stakeholders. Banks are now responsible for the vacant homes before a foreclosure action is finalized.
What if Your Home Isn't in the Targeted Neighborhoods?
The foreclosure epidemic is citywide. In 2010 alone, there were 10,500 foreclosures in Chicago and nearly 95 percent of the foreclosed homes remain vacant. Unfortunately, there are not enough resources to provide support to all of Chicago's neighborhoods. The City believed it would be more effective to focus resources on the most distressed neighborhoods rather than focus on individual homes across the city.
If you are facing foreclosure or your mortgage is underwater, speak with a Chicago foreclosure defense lawyer to learn what options are available to you.