A report by the Chicago Department of Housing highlights problems facing homeowners around the city.
According to the report, foreclosures during the first half of 2007 were up 35 percent from the same period last year. A total of 6,329 homes were foreclosed during the first half of the year.
The news comes on the heels of a pronounced drop in home sales around the greater Chicago area. According to the Chicago Association of Realtors, just 1,956 homes were sold during the third quarter of this year, the lowest total for the quarter since 1992.
Many homeowners around the Chicago region face foreclosure due to a mix of factors. Many homeowners, particularly in the last couple of years, bought their home with subprime lenders who charge deceptively low interest rates during the first two years. When those rates rise, many homeowners are unable to shoulder the rising mortgage payment, resulting in a default on the loan.
Another factor affecting struggling homeowners is the slowdown in sales around Chicago. Many homeowners are unable to sell their property in time to avoid foreclosure or are unable to get the price they want for their Chicago Homes as prices begin to slide in many neighborhoods around the city.
Technorati Tags: Chicago Homes, Chicago Foreclosures, Chicago Real Estate News
