March 16th, 2010 10:45 EST
Devastating Chicago Foreclosure Report Released
CHICAGO " According to a new foreclosure report, there is a foreclosure in Chicago every 22 minutes. The report also reveals that more than 23,000 homes were in foreclosure in 2009, which is 16 percent more compared to homes that were in foreclosure in 2008. In addition to those who are already in default, another 11 million homeowners nationwide owe more than their homes are worth, which is known as being "underwater.`
While the minority and low-income neighborhoods that were the main targets of predatory lending continue to bear the brunt of foreclosure, the devastation is spreading. Foreclosures are no longer being driven primarily by predatory lending " Durbin said. Most of those homes, sadly, are already gone. The crisis has now evolved into an "underwater` problem and an unemployment problem "and those problems have seeped into neighborhoods across Chicago. "
More homeowners across Chicago find themselves at risk of foreclosure as property values drop and families struggle with unemployment. National People`s Action released its 2009 Chicago Foreclosure Report that shows eighteen months after reckless and predatory lending took down the U.S. economy, foreclosures are occurring at a record pace. Meanwhile, Washington has yet to enact any meaningful reform of the financial industry.
Predatory and subprime lending created an unprecedented foreclosure crisis that sent our economy into a tailspin, resulting in millions of people losing their jobs, and spurring even more foreclosures. To keep this from happening again, we need a strong, independent consumer protection agency that will protect all of us from predatory and unsafe financial products " said George Goehl, Executive Director of National People`s Action.
Today, U.S. Senator Chris Dodd is introducing a Consumer Financial Protection Agency that would stop the spread of risky and reckless financial products, but it faces stiff opposition from the banking industry.
National People`s Action is a national organizing, policy, research, and training center for grassroots community organizations dedicated to building power to reclaim our democracy and advance racial and economic justice. For more than 36 years, NPA has worked to build and strengthen people`s organizations, develop indigenous leadership, and advance campaigns for a more just, equitable, and sustainable society.