Daley expected to take new steps against foreclosure

Mayor Daley is expected to release a plan Wednesday to assist Chicagoans who are undergoing foreclosure, according to Ald. Ed Smith (28th).

Smith had no details on the plan, and the mayor's office had not released the mayor's schedule.

Foreclosures increased in Chicago by 46 percent from 2006 to 2007. What's worse is that the city thus far has done very little to help.

According to a study done by the National Training and Information Center, the number of new foreclosures in Chicago in 2007 was more than 14,000. The city has been able to help about 1,200 people, according to Molly Sullivan at the Department of Housing.

The neighborhoods with the highest numbers of new foreclosures were concentrated on the South and Southwest sides. West Englewood ranked highest with more than 220 foreclosures per square mile, more than 50 more than the next highest rank neighborhood, West Garfield Park.

Sullivan says the city is targeting neighborhoods at risk for foreclosure with outreach workshops. The workshops, which she said are attended by several hundred people on average, put homeowners in touch with their banks. The lenders can then assist about half of the people they meet with.

The city does not fund any programs to assist homeowners and some aldermen seem less than aware of the problems afflicting their wards.

Martha Ramos, a representative for Ald. Rey Colon (35th), said she was unaware of a high or increased foreclosure rate in the Logan Square neighborhood. According to the NTIC study, Logan Square's foreclosure rate has more than doubled between 2006 and 2007.

Sullivan says Logan Square residents would be helped by outreach programs in targeted neighborhoods such as Humboldt Park.

Smith said that "[foreclosure] is a major concern and it's not only hurting my ward . but the whole world is hurting from these foreclosures." He added that his office assists those who come with concerns and has contacted lenders in the past with requests to extend repayment periods or cut interest rates.

Sullivan contends that the majority of people in foreclosure don't seek help and thus the city cannot assist them. She added that the city funds non-profit counseling centers through which homeowners in foreclosure can go for free advice.

The only Chicago neighborhood with less than 10 foreclosures was Armour Square. Even trendy Lakeview had a foreclosure rate that almost doubled in 2007, with 126 new foreclosures last year.