WBEZ | foreclosure

A Home Denied: Struggling Against Displacement From Chicago to Palestine

Wed, 23 Jan 2013 12:40:00 -0600

Both here and abroad, racist and militarized institutions threaten to uproot oppressed peoples from their communities. The housing justice movement in Chicago is connected to the Palestinian struggle against displacement and home demolitions.

Listen to the stories of people who have been forced from their homes, denied entry into their homeland, and resisted by occupying vacant homes and rebuilding after demolition. Join us as we learn from each other’s movements and gain strength in our common struggles for justice and liberation.

Speakers: Jenine [last name withheld], Maria Dolores Calvillo, Merlene Robinson-Parsons, Sabrina Morey, and Yousef [last name withheld].

Recorded live, Wednesday, January 23, 2013 at Grace Place.

Friday deadline for homeowners to file a claim for national settlement

Fri, 18 Jan 2013 14:53:00 -0600

Friday is the deadline for homeowners to file a claim under a national mortgage foreclosure settlement from 2012.

The $25 billion settlement sets aside about $1.5 billion for eligible borrowers nationwide.

The settlement stems from a lawsuit against the nation’s largest mortgage servicers, including Bank of America, JPMorgan Chase, Ally/GMAC, Citi and Wells Fargo.

The banks are accused of fraudulent practices while servicing loans of struggling homeowners including the use of “robo-signing” foreclosure documents during 2008 to 2011.

But the exact payout for those borrowers depends on how many people file a claim by today.

Attorney General Lisa Madigan says about 64,000 people in the state could be eligible.

“There’s not enough [money] obviously to compensate you if you lost your home, but it is compensation that may allow you to pay a number of months of your rent and pay for the other utilities and bills that you and your family still face,” she said.

Madigan says settlement packets were mailed out to those who may be eligible. But she says borrowers should still file a claim if they think they had a troubled loan from one of the servicers during the time period.

“You don’t have to prove financial harm to receive this payment, and you also don’t give up any of your legal rights if you sign up for this or accept it. So if you have an ongoing lawsuit against the servicer or if you plan on bringing a lawsuit against the bank, you can still do that and collect this money,” she said.

Eligible borrowers can file a claim online by tonight.

For help, contact the settlement administrator at 1-866-430-8358 or send questions by email to administrator@nationalmortgagesettlement.com.

Payments are expected to be delivered by mail in mid-2013.

Foreclosure rate up in Illinois during 2012

Thu, 17 Jan 2013 05:00:00 -0600

There were fewer foreclosures in the US in 2012 compared to the previous year. But Illinois was one of 25 states where the rate increased.

The latest report from RealtyTrac shows Illinois’ foreclosure activity increased by 33 percent in 2012 compared to the previous year. In fact, the state is in the top 5 for having the nation’s highest foreclosure rates. Florida tops the list. Over 3 percent of homes received a foreclosure filing during the year.

But Neeti Arndt with realty company Dreamtown says it’s been a busy January so far in Chicago. She thinks the worst is over.

"All neighborhoods are seeing a lot less inventory, and I think that’s due to a really strong buyer demand. And the interest rates are really driving this as well as we’ve seen a slight uptick in the last month with interest rates. That’s causing buyers to really get out there and understand this is the time to take advantage of the market," she said.

Arndt thinks homes prices could stabilize in Chicago by this year.

Meanwhile, foreclosure activity for half of the country dropped last year. RealtyTrac reports a lower foreclosure inventory for those states helped median sales prices to increase for 2012.

Vacant homes policy brings Chicago big cash

Thu, 03 May 2012 12:25:00 -0500

An initial review suggests that Chicago’s revised vacant property ordinance is bringing in a lot cash to the city, and that it’s helping city officials keep better count of the number of homes sitting vacant. The statistics, contained in a letter from Chicago Mayor Rahm Emanuel to Alderman Pat Dowell (3rd) were the city’s first quarterly report on the effectiveness of the ordinance since it went into effect in November.

The numbers show that Chicago collected $619,000 in fines from financial institutions during the first quarter of 2012. That’s more than double what the city collected in the same period last year. The number of vacant homes that are officially registered with the Department of Buildings also swelled. Last year 2,833 vacant properties were registered between November and April. Emanuel’s letter stated: “In the past six months, with the new ordinance, the number of vacant properties that became registered with the City nearly doubled to 4,436.”

“I think the ordinance did what it was supposed to do,” said Dowell, “which was to make the banks and other financial institutions responsible for the properties that they’re responsible for in our neighborhoods.”

Dowell spearheaded the effort at City Hall to make lenders responsible for the costs of securing and maintaining vacant homes when their owners disappear. The changes invited a federal lawsuit that the City is now fighting, filed by the Federal Housing Finance Agency on behalf of mortgage giants Fannie Mae and Freddie Mac.

“Holding financial institutions accountable will ultimately lead to safer and stronger communities throughout the City of Chicago,” wrote Emanuel.

Under the revised ordinance, lenders are required to pay $500 to register vacant properties with the city’s Department of Buildings when their owners fail to, and to pay between $500 and $1000 per day for violations of the city code.

Still, the preliminary analysis shows that the ordinance may need more time before Chicago has a full grasp of the size of the vacant property problem caused by the foreclosure crisis. A study last year by the Woodstock Institute estimated more than 18,000 Chicago homes are vacant.

Activists say fatal fire could have been averted

Mon, 26 Mar 2012 20:29:00 -0500

Last Monday, I visited 2414 N. Marmora with people concerned about vacant buildings. The yard was piled with garbage and it reeked of urine.

Vanessa Valentin of the Northwest Side Housing Center discovered squatters had pried the boards off the door.

"It’s easy," Valentin said. "They take it off and they have access to come in and out."
Valentin says she called the city’s 311 hotline that day – her third call since last summer complaining that the house was unsafe.

Four days later, it went up in flames.

"You know, my first reaction was I cried because two people lost their lives, two firemen got hurt," Valentin said. "It's very frustrating. This could have been prevented if they would have gone out on Monday when reported and secured it."

Chicago Department of Buildings spokeswoman Caroline Weisser says the city twice boarded up the building, most recently last May, and was working on getting it demolished.

"The Department of Buildings works aggressively to use the tools at its disposal to ensure vacant properties are maintained and secured," Weisser said in a statement.

LaSalle Bank, now Bank of America, filed foreclosure in 2007, but Bank of America says JP Morgan Chase is the one in charge.

(UPDATE on 3/29/12): A Chase spokeswoman provided documents from the foreclosure auction in 2008 showing that Joseph Varan purchased the house for $180,000. But the web site of the Cook County Recorder of Deeds has no record of Varan holding the deed to the property, nor of an auction having been completed.

“The City is undertaking an investigation into the ownership because the title on file with the Recorder of Deeds has been drawn into question," Weisser of the Department of Buildings said in a statement.

Varan couldn't be reached for comment on why the property had not been maintained and why he hadn't filed the deed with the county.

Demolishing foreclosed homes: Does it make sense?

Mon, 26 Mar 2012 13:13:00 -0500

Listen to this conversation

Is demolition a solution to the housing crisis in some of the Chicago area's most depressed communities?

Nowadays, many foreclosed homes end up in states of disrepair. Left vacant, they’re stripped of all valuable materials. Instead of attracting potential buyers, these homes often attract crime and end up sinking property values. That’s why some communities are tearing them down.

Former City of Chicago buildings commissioner Richard Monocchio estimates that between 6,000-9,000 homes should come down in Chicago alone. We'll talk with Monocchio and Chicago Heights Mayor David Gonzalez Monday on Eight Forty-Eight to learn about their expereinces using demolition as a tool to rebuild communities hit hardest by foreclosures.

U.S. Government seals $25 billion mortgage settlement

Fri, 10 Feb 2012 14:00:00 -0600

On Thursday, federal and state prosecutors reached a $25 billion settlement with banks over foreclosures. So, what now? That's the question on many current and former homeowners' minds.

Ed Jacob, the executive director of the Neighborhood Housing Services of Chicago (NHS), sussed out the details and answered callers questions.

Illinois to get about $1 billion in national mortgage settlement

Fri, 10 Feb 2012 04:51:00 -0600

The $25 billion mortgage settlement with big banks means about 1$ billion in relief to Illinois homeowners.

People who owe more than their homes are worth and have fallen behind on payments may qualify for loan reductions, while other people who are underwater but current on their loans may be able to refinance. And people who lost their homes to foreclosure may be able to get cash payments.

Illinois attorney general Lisa Madigan helped negotiate the deal and spoke at a Washington, D.C., press conference announcing it.

"Today’s settlement should serve as a warning to financial institutions - there are consequences for engaging in practices that jeopardize the stability of our communities and our economy," Madigan said.

But whether this deal means a major boost for the housing market is still a question.

Amir Sufi is a finance professor at the University of Chicago Booth School of Business.

"It’s marginally going to have a positive impact," Sufi said. "I just don’t think it’s going to attack the really huge problem in a really major way."

That really huge problem, Sufi says, is the large number of homeowners who owe more than their homes are worth. The housing data firm CoreLogic says the total amount of negative equity in the U.S. as of last fall was $700 billion.

Illinois homeowners who are underwater on their loans say they’re hopeful the new mortgage settlement will help them. But many also say they’re beaten down after years of battling with banks.

Aimee Gendusa-English owns a home near Midway airport that’s now worth at least $50,000 less than she owes on the mortgage. She says she’s been trying to refinance her loan under a federal program for underwater borrowers. But she says her servicer keeps misunderstanding and bungling her request.

"I’m really glad to hear that anyone is going after the banks for any aspect of the wrongdoing that they engaged in," Gendusa-English said. "But as a consumer, it fills me with frustration because I feel like all these agencies are doing stuff but none of it helps me. I’m always the one who slips through the cracks."

Gendusa-English may not even qualify to refinance under the new agreement because she says her loan is held by Freddie Mac. Freddie Mac and Fannie Mae refinancings are covered under a separate federal program.

Cook County foreclosures backlogged in courts

Thu, 22 Sep 2011 20:51:00 -0500

A new study says Chicago-area foreclosure cases are taking longer to process.

The data, compiled by Woodstock Institute, says the median time for a house to complete foreclosure in the second quarter of 2011 was 359 days. That’s up 25 percent compared to the same time last year and a record high since the housing crisis started in 2008.

According to Sarah Duda, a senior researcher at Woodstock Institute, last year’s foreclosure moratorium and increased case scrutiny overwhelmed the courts and contributed to a backlog in the system.

“A lot of the cases that were set to be scheduled or set to be processed in 2010 or in 2011 - those are getting pushed back,” Duda said. “This particular data, foreclosure data, is very sensitive to process changes, but that doesn't necessarily mean that the levels of distress in communities are getting better.”

The study also shows the number of houses completing foreclosure at auction in the first six months of this year was cut in half compared to the same time last year. Duda attributes that to the court backlog, not to less foreclosure filings. She said that while longer processing times could help families save their homes, they can also put increased pressure on neighborhoods struggling with high vacancy rates.

“If the property’s vacant, longer process times could be problematic and very harmful for communities,” said Duda, who cited earlier Woodstock research with connecting incidences of foreclosure to increases in violent crime and decreased property values. “When there’s a vacant property that’s tied up in foreclosure where there’s unclear ownership, unclear responsibility, it has more opportunity to be toxic and contribute to destabilizing impacts.”

'Land bank' knocks out some foreclosure problems

Sun, 28 Aug 2011 23:01:00 -0500

Cities have been tearing down crumbling, vacant houses for decades. The money for municipal demolition bills usually comes out of city budgets, but in Cleveland the housing crisis has started to change that equation.

Bill Beavers has lived on Cleveland's Dove Street since 1967. But on a recent sunny morning, Beavers is sitting on a neighbor's front porch, watching something he has never seen on his block before.

Across the street, a huge excavator is tearing through the front facade of a two-story wooden house. The top half of the house, windows and exterior wall fold as easily as cut weeds and tumble to the ground.

"Oh, it's good to see them tear these old structures down because nobody wants to move in them," Beavers says. "It costs too much to fix them up, you know?"

The house went into foreclosure two years ago, and when the family moved out, vandals stole the circuit panel and pipes. Other houses on the block are nicely kept up, but the street is in the 44105 zip code — which in 2007 had the dubious distinction of garnering the highest foreclosure rate in the nation.

Saturated with foreclosures, the lender that took back the house couldn't unload it for even $5,000.

"A property like that, on a street that's otherwise relatively stable but [in a] depressed market, probably needs to come down because it has way too much need on the inside," says Gus Frangos, head of the Cuyahoga County Land Bank, which oversees these demolitions. "If you take these pockmarks out, all of a sudden you stabilize the street a little bit."

Let's make a deal

When the land bank started two years ago, Frangos thought the group would have to pay its demolition bill from its own budget. But then the economy worsened and the foreclosures piled up. Lenders stuck with crumbling houses found themselves on the hook in the Cleveland Housing Court for hundreds of thousands of dollars worth of code violations.

The Cuyahoga County Land Bank, a quasi-government corporation, offered lenders a deal: We'll take your worst houses, if you pay to knock them down. This year, Fannie Mae and some of the country's biggest lenders — including Bank of America, Citibank and Wells Fargo — will help pay for half of the land bank's 700 scheduled demolitions.

Lenders pay $3,500 to $7,500 per house. Wells Fargo's Russ Cross says it's a sensible and responsible business plan.

"We want to make loans on an ongoing basis, and to do so, we need stable to rising home values," he says. "We've got to do whatever we can to protect home values in neighborhoods."

Some lenders are looking at starting similar programs in Detroit, Chicago and Milwaukee. Fannie Mae's P.J. McCarthy says the government-controlled mortgage giant has been donating properties and demolition funds to the Cuyahoga County Land Bank since 2009 because keeping the houses just doesn't make sense.

'Not a cure-all'

"They are not going to sell on the market for much more than a few thousand dollars, and our costs in marketing those properties and preserving them generally exceed the costs," he says. "So the economics of the transaction make sense as well as the intent of the land bank to reduce supply and stabilize the neighborhood."

Dealing with foreclosures is a huge headache for financial institutions. RealtyTrac, an online marketplace for bank-owned property, counted more than 1.6 million foreclosures in the U.S. in July.

RealtyTrac's Rick Sharga says demolition programs like Cleveland's only start to address the backlog.

"Eliminating a handful of these houses really isn't going to be a cure-all in and of itself," he says. "It's one step in a much longer process that's going to be required before the housing market comes back."

In the meantime, cities have to figure out what to do with the newly vacant land.

In South Euclid, an eastern suburb of Cleveland, building inspector Rick Loconti is walking on a brick path through small plots of tomatoes, eggplants and sunflowers and remembers what used to be here.

"The house was so far gone, we couldn't fix it up and get any kind of a return, so we demolished the house, and we put in this community garden," he says. "And it's now become a source of community pride."

Loconti concedes there are more vacant lots than demand for community gardens. So municipalities are also offering newly vacated land to neighbors as side lots and putting other plots away for if and when the housing market improves here.