Chicago is to receive in excess of $55 million as federal aid from the government to tackle the foreclosure problem that has affected various neighborhoods within the city; this amount being more than what any other city within the country has received.
This money is to be used to buy and restore foreclosed as well as abandoned houses, thereby revitalizing neighborhoods that have been adversely affected by this ongoing foreclosure problem. This aid is part of the close to $4 billion Neighborhood Stabilization Plan that was passed last year.
The city plans to focus on twenty five neighborhoods, most of which are situated in the Western and Southern sides. These neighborhoods include Washington Park, West and East Garfield Park, Englewood, and Austin.
These neighborhoods were selected by the city after an examination of the seventy seven community areas in the city’s foreclosure numbers, and also the percentage of houses which were financed through subprime loans.
The recently created Department of Community Development has been given the responsibility to manage these funds. As per the plan, these funds will also be used for pulling down homes and establishing ‘land banks’ and ‘loan pools’. To make sure that the action be taken in an expedited manner, they have been given only eighteen months to use the available funds.
While the effects of programs such as this might take some time to show, many people who have access to funding are looking at this to be a good time to buy amidst Chicago foreclosures. The main reason behind this is the low prices these homes usually end up being sold for.
If you do intend to buy a foreclosure affected home, do make sure that you do not rush into making a deal, and go through as many options as you can.
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Written by Alex Rolim.
