Suburbs In Foreclosure Net

Posted in Foreclosure, July 2nd, 2007 |

Four suburbs have joined the ranks of foreclosure hit lists – part of the countrywide phenomena. Chicago Heights, Harvey, Calumet City and Dolton are the top among 500 zip codes in foreclosure listings. Ed Paesel of South Suburban Mayors and Managers Association opines that the problem has reached epidemic proportions and is spreading fast.

These communities have always had a high rate. The recent trend is lower than other Chicago regions in the last two years, in terms of percentage. The problem is not confined to the south suburban alone. The same view is echoed by Beth Devers, Housing Director of Metropolitan Mayors Caucus. She analyses that borrowers in the sub-prime mortgages are unable to keep with rising interest rates. When someone loses a job or gets sick then a small disruption snowballs into a debacle. The sub-prime loan scheme had been envisaged with the object of helping those with bad credit as a means of allowing them to realize their dreams about owning a home.

Numbers can be confusing and inadequate to give the total picture. This is the opinion of Riverside Village President Zenovia Evans. Statistics gathered by Woodstock Institute places Riverdale second in the Chicago suburbs for foreclosure per 1,000 units. That means it ranks just after University Park.

The numbers of foreclosures in Calumet City were approximately 1% of its 17,000 properties, according to Calumet City Communications Director, Eric Schneider. The first reaction is shocking. But most of those in Calumet City, Dolton and Chicago Heights were first-time owners and made very good beginnings. But inexperience made them easily vulnerable to foreclosures, says Bert Herzog, Dolton Director of Economic Development.

Another factor is that the south suburbs have high rates of unemployment than other regions. Dubious lending does not help. Borrowers need to be more informed. The best option is to come to some working arrangement with the lenders. In this respect the Federal Department of Housing and Urban Development are always ready with an extended helping hand. It is just lack of information. The affected do not know that help is out there for the asking.

Regional President of Calmet City, Chicago Heights, Crete, Matteson, Homewood and Flossmoor, Jeanna Bridges said that the borrowers should come forward and seek help. The banks have the power to offer flexible payments as well as advice regarding selling their homes. All avenues should be probed before despairing.

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