When foreclosure proceedings are completed, banks usually clear everything and everyone from inside buildings. In urban areas like Chicago, oftentimes a building that has been foreclosed upon has several tenants, and these tenants are often literally left homeless, thanks to the short notice provided by their landlord (or the bank). In addition to tenants being left homeless, they lose their security deposits. In 2009 alone, an estimated 8,500 rental units in Chicago were cleared through foreclosure, and renters lost an estimated $7.3 million. One could only imagine how this money could have stimulated the local economy in Chicago.
Foreclosure in urban neighborhoods doesn't just affect landlords and tenants. It also affects the area immediately around foreclosed properties. Oftentimes, vacant properties become miniature crime centers. Drug dealers stash their drugs inside, and thieves steal the copper wiring from inside the building. Other criminals trespass and vandalize these properties without regard for whoever may occupy the building in the future. This doesn't only bring down the value of the foreclosed property, but also the property value of the surrounding properties as well. This can eventually create a domino effect on the property values of an entire neighborhood.
If a city realizes that its urban neighborhoods are dying because of foreclosure, and there seems to be little prospect for reinvigoration through gentrification or other means, then it should definitely consider creating its own version of "Keep Chicago Renting". Even if a responsible renter isn't directly responsible for property taxes, he or she positively contributes to the economy of the neighborhood around them, and is a valuable asset to their community at large; cities should do everything they can to keep them around.
If you're facing the Illinois foreclosure process on your home and don't know where to start, don't go at it alone! It is highly recommended that you retain a qualified and experienced foreclosure attorney to help you save your home. Be sure to download our brief guide to hiring a foreclosure attorney below.
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