Foreclosures In the Chicago Region Continue to Grow at an Alarming Rate

Until recently, the foreclosure problem facing the Chicago region has largely been confined to lowerincome and minority communities. High concentrations of subprime mortgages, often containing deceptive and abusive terms, in these neighborhoods led to high concentrations of foreclosures. These concentrated foreclosures, in turn, had the potential to lead to neighborhood decline in the form of decreased property values and increased crime. In 2006, growing problems with popular subprime adjustable rate mortgages and stagnant or declining property values led foreclosures in the region to skyrocket to record levels. In 2007, foreclosure levels increased further. While lower-income and minority communities continued to see the highest concentrations of foreclosures, all parts of the region experienced significant increases from 2006. Suburban regions led the Chicago Six County area in growth of foreclosures, and every part of the Chicago region now has communities with very high levels of foreclosures.