WBEZ | servicers http://www.wbez.org/tags/servicers Latest from WBEZ Chicago Public Radio en Banks walk away from some foreclosures in Chicago http://www.wbez.org/story/abandoned/banks-walk-away-some-foreclosures-chicago <p><p>A new study says banks are choosing to walk away instead of completing some foreclosures, leaving buildings abandoned. <br /><br />The housing research group Woodstock Institute says it identified about 2,000 of these vacant homes in Chicago. Here&rsquo;s what happens &ndash; a homeowner stops paying, the bank servicing the loan files a foreclosure, the homeowner moves out, but then the bank decides it doesn&rsquo;t make financial sense to actually take ownership. Then the house sits empty. Geoff Smith of Woodstock Institute co-wrote the report. <br /><br />&quot;While that&rsquo;s all happening, the property takes away from the quality of life in the surrounding community, costs the city substantially and the servicer essentially walks away without any type of accountability,&quot; Smith said.<br /><br />Smith says it costs the city money to take legal possession, secure the house and then in many cases, demolish it. He says that could total about $36 million just for the vacant properties his institute identified. Smith says most of them are located in African-American communities already hard hit by the housing crisis. <br />&nbsp;</p></p> Thu, 13 Jan 2011 19:40:00 -0600 http://www.wbez.org/story/abandoned/banks-walk-away-some-foreclosures-chicago