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
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
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.