Woodstock Institute

A new report shows nearly $46 billion in consumer relief has been provided nationwide to victims of the robosigning scandal as part of last year’s national foreclosure settlement with the five largest mortgage servicers.
 

The foreclosure crisis left many communities with a dilemma: vacant homes are accumulating quickly at the same time as fewer and fewer people can qualify for mortgages to buy those homes. What can be done with the growing inventory of vacant, abandoned homes? One solution gathering attention is renting out single-family homes, but some communities are wary due to a history with irresponsible landlords, while some investors are struggling to find ways to manage properties effectively.

It’s readily apparent that the foreclosure crisis and its resulting vacancies and disinvestment are problems that cross municipal borders.

Leading community organizations, including Chicago’s Woodstock Institute, report evidence of a two-tiered mortgage market characterized by high rates of government-backed loans made both to borrowers in communities of color and to borrowers of color in their new report, “Paying More for the American Dream VI: Racial Disparities in FHA/VA Lending.”
 

Completed foreclosure auctions in the Chicago six county region more than doubled from the first half of 2011 to the first half of 2012, new data from Woodstock Institute show. New foreclosure filings stayed relatively flat from the first half of 2011 to the first half of 2012, but several low-wealth communities that had seen recent declines in new foreclosures experienced substantial growth over the same time period. Foreclosure filings indicate the beginning of the foreclosure process, but  not all filings end in a completed foreclosure auction.

News outlets are reporting that the housing market is on its way back up, but market recovery will not be allocated equally throughout the Chicago area—it’s unlikely that we will be seeing

By Woodstock Institute
 
Data from the Illinois Housing Development Authority (IHDA) show that the Illinois Hardest Hit Fund (HHF) is reaching a broader group of struggling homeowners and offering greater amounts of assistance than in the previous quarter. At the same time, the length of time it takes to process the HHF application is growing.
 

Back in February, President Obama announced a package of initiatives designed to make refinancing easier for underwater homeowners. The proposals have been crafted into legislative language and need Congressional approval to help homeowners take advantage of historically low interest rates, saving homeowners an estimated $3,000 per year.