Community and clerical organizations have demanded that city, county and statewide elected officials make foreclosure prevention a top priority for homeowners. Some programs were put in place on all levels for homeowners in jeopardy or currently in forecl
Community and clerical organizations have demanded that city, county and statewide elected officials make foreclosure prevention a top priority for homeowners. Some programs were put in place on all levels for homeowners in jeopardy or currently in foreclosure to get assistance.
Yet, the number of foreclosures filed in the last few months increased.
Some say the program supply doesn’t meet the demand; some say those offering assistance are not in it for the long haul, leaving homeowners deeper in debt.
In March, 1,763 foreclosures were filed in Chicago, nearly 400 more than the previous month, according to statistics from the Chicago Rehab Network, an affordable housing network.
At the height of the national recession, which was born out of, in part, the burst housing bubble as a result of bad mortgage lending practices, President Barack Obama urged homeowners to push past pride and contact their lenders. The president, in turn, pushed for lenders to work with borrowers. Initially, Illinois Attorney General Lisa Madigan was on board with the president and his call for lenders and borrowers to work with each other. But Madigan has changed her message to homeowners and urges them to contact a U.S. Department of Housing and Urban Development-certified housing counselor, or even her own office.
“It’s just a nightmare,” Madigan told the Defender about what homeowners are dealing with trying to work out mortgage agreements with some lenders. “They (lenders) don’t respond.”
For the first quarter of this year, 11,979 cases were filed in Cook County, down from the 13,296 for the same period in 2009, statistics provided by Judge Dorothy Kirie Kinnaird, presiding judge of the Chancery Division, show.
Statewide, 45,780 cases were filed in the first quarter.
“Housing costs have outpaced people’s earnings and it’s come to a crisis point. Some of the programs that are there to help finance are just stretched too thin,” Kevin Jackson of Chicago Rehab told the Defender.
Whether it’s a fraudulent deal to begin with where a home’s value is less than what it’s mortgaged for, or a homeowner determined to stay in a community that doesn’t meet their income needs, some end up over their heads and are faced with foreclosures,” said Jackson.
While there have been some success stories with available programs, they just haven’t yielded marked results, he said.
“You can see the great efforts on part of the local community organizations, city government and financial institutions trying to figure it out. There have been some success stories, but the programs just aren’t as effective as hoped,” said Jackson.
Last month, Circuit Court of Cook County Chief Judge Timothy Evans launched the Cook County Mortgage Foreclosure Mediation Program. The $3.5 million funded program is to provide free housing counseling and legal services to homeowners and families in the county currently in foreclosure.
Nine months ago, the City of Chicago announced $110 million in funding administered by the Neighborhood Housing Services of Chicago to help up to 14,000 potential or current homeowners in the city who don’t have the necessary credit needed or are at risk of foreclosure and need to refinance to a more affordable loan.
Attorney Ahmad Sulaiman said homeowners are flooding to the resources available, however, the follow-up from the other side is lacking.
“People are trying to apply to and utilize the programs, but later on find out it’s just a temporary agreement as far as the financial institution is concerned. The loan modifications weren’t actually in their best interest and the homeowners find themselves in deeper debt and have had their cases re-filed,” said Sulaiman, managing partner of Sulaiman & Associations, a firm that specializes in foreclosure defense.
State Sen. Ricky Hendon, D-5th, recently sponsored a measure to assist homeowners in foreclosure. It awaits Gov. Pat Quinn’s signature.
The Illinois Homeowner’s Emergency Assistance Program would allow grants to be issued to eligible homeowners currently in foreclosure to help pay their mortgage. Eligible mortgage holders may receive grants up to $6,000 or the sum of three monthly mortgage payments on their property, whichever is less.
There will be an estimated 48,000 to 52,000 foreclosure cases filed in Cook County this year, surpassing the 47,049 filed for 2009 and the 43,876 filed in 2008, according to county statistics. Homeowners who’ve received a summons can call 877-895-2444 to schedule a free meeting with a housing counselor — the first step in the mediation process for the county’s mediation program. For those not currently in foreclosure, visit www.cookcountyforeclosurehelp.org. Residents can also call 311 for the City of Chicago to inquire about resource options.
Copyright 2010 Chicago Defender.
About Post Author
