Not Just the Poor

Middle class and out of a home in Chicago

Poorer neighborhoods hit hardest, but wealthy, middle class also squeezed

December 4, 2007
BY ART GOLAB Staff Reporter/agolab@suntimes.com
The home mortgage meltdown isn’t just gutting the poorer parts of town.

It’s beginning to hammer wealthy and middle class Chicago neighborhoods like Lincoln Park, Lincoln Square, Irving Park, Portage Park and Mt. Greenwood — all areas where home mortgage foreclosures have shot up by 100 percent or more from 2006 to 2007.

The home mortgage meltdown is beginning to slam Chicago's wealthy and middle-class neighborhoods.
(AP)

Data released Monday by the National Training and Information Center shows that in Lincoln Park there were 18 homes in foreclosure during the first six months of 2006 — but that number more than doubled to 37 for the first half of this year.

In terms of sheer numbers, poor neighborhoods still are feeling the worst pain. But percentage increase in mortgage defaults is climbing faster in middle class areas, according to the data.

Poverty stricken West Englewood, for example, had 348 foreclosures, or 111 per square mile — yet that was just a 58 percent increase over the previous year.

But in middle class Portage Park, the heart of the Northwest Side Bungalow Belt, mortgage defaults jumped from 32 homes to 94, a whopping 193.8 percent.

Does anyone out there realize that prices went way too far ahead of income??? That is why the foreclosures are jumping. People could not afford the price tag, but they were goeded into stretching too far by the TV flipper shows, the real estate agents, the neighbors, the co-workers, et al. Now judgement day as arrived and they want a pass because they are too gullible.

Freezing the ARMS is a good first step,” said Rose, but he added that lenders should also work with borrowers to permanently change the terms of the loans so they don’t get into trouble again.

Also, government and lenders should to find new, healthier ways to bring mortgage money into poorer neighborhoods rather than just subprime lending.

"And to make sure this doesn’t happen again we’ve got to slap some rules on an industry that has gone virtually unregulated,” said Rose.

Overall in Chicago, the foreclosure rate was 40 percent higher for the first six months of this year compared to a similar period in 2006.

Does this sound about right?

Mr. Fvcked Borrower: Mr. Nanny-State Government! Mr. Nanny-State Government!

Mr. Nanny-State Government: What Mr. Fvcked Borrower?

Mr. Fvcked Borrower: I'm in trouble and I need your help!

Mr. Nanny-State Government: What is it?

Mr. Fvcked Borrower: I can't afford my lottery tick....er, I mean my HOME any more. I'm scared! Tell Mr. Lender to give me a break.

Mr. Nanny-State Government: Ok, Mr. Lender, go easy on Mr. Fvcked Borrower!

Mr. Lender: We know you lied on your lottery tick...er, loan application, Mr. Fvcked Borrower. But that was ok, because we liked the commissions. We will freeze your rate if you promise never to do this ever again. Do you promise never to get in over your head again with debt?

Mr. Fvcked Borrower: Oh, yes. Yes. I promise never to get in over my head again. Thank you sir, thank you.

[Mr. Fvcked Borrower is crossing his fingers behind his back.]