New Chicago Foreclosure Numbers Show Homeowner Strain
There are a lot of stressed out homeowners in Chicago who are struggling to make their mortgage payment. As I’ve said before, the highest number of the foreclosures have been on the South Side. A report out by the National Training and Information Center confirms this.
Crain’s reports that the Englewood neighborhood on the South Side is getting hit the hardest. In the first six months of this year, there were 348 foreclosures, a 58% increase over the same time period in 2006.
But, as I’ve also discussed, foreclosures are creeping into the North Side now as well.
Lincoln Park:
- 18 foreclosures in the first six months of 2006
- 32 foreclosures in the first six months of 2007
- 106% increase
Lakeview:
- 31 foreclosures in the first six months of 2006
- 54 foreclosures in the first six months of 2007
- 74% increase
These are small numbers, indeed, compared to what we are seeing on the South Side and nationwide, but I expect the numbers on the North Side to increase. I am seeing higher numbers in the River North, Streeterville, and Loop high rises probably because there are more investors getting into trouble there.
From the Sun-Times:
“You had a lot of upper-income people taking advantage of the low rate adjustable rate mortgages, interest only loans and other programs that were available in order to move up, to get an extra two or tree bedrooms,” said Jeff Metcalf, president and CEO of Record Information Services, which provided much of the raw data used NTIC analysis.
“And when the job loss, economic slowdown, or declining home values hits, it hits all spectrums rich and poor,” Metcalf said.
The Sun-Times uses two foreclosure examples from yesterday as examples of stress on the North Side: a single family home at 2040 N. Sheffield that went to foreclosure auction at a price of $624,907 and a 2 bedroom, 2 bath condo unit in the Elysees building at 111 E. Chestnut near the Mag Mile. Unit #36A went to foreclosure auction for $542,115.
I wasn’t able to find a prior sale on the house on Sheffield. The Chestnut Street condo last sold in September 1999 for $459,000.
“There are a lot of stressed out homeowners in Chicago who are struggling to make their mortgage payment. ”
What’s the big worry, haven’t they heard the news?
The Olympics are coming… well, maybe.
They just have to grit their teeth an make payments somehow for the next 22 months and then all the buyers will show up to pay yesterday’s bubble prices…well, maybe.
John
Here’s some history on 2040 N. Sheffield:
8/29/94 purch for $333,000 with a mortgage of $259,850.
Various mortgage transactions over the years, with the most recent 10/26/05 for $620,750.
John, lol.
G: Thanks for the info on 2040 N. Sheffield. I couldn’t find any purchase info when I looked.
What has happened with that homeowner is happening more than you know (and isn’t being talked about with the press.) These aren’t the people who bought two years ago with the teaser rate and no money down.
No.
These are the people simply living off their homes as an ATM without understanding that it was DEBT they took on and they would have to pay it back. They took out about $400,000. Where did all that money go?
I wish the mainstream media would start asking those questions about this group of homeowners (and there are a lot of them out there.)
It’s a shame. Those owners on Sheffield could have had a monthly mortgage payment of practically nothing (after paying off the house for 13 years and refinancing into a 5% or lower fixed rate at 15 years.) And now they have nothing.
John: It’s amazing how many sellers in the Washington Park area are playing up the Olympics. LOL. We shall see.