Foreclosure Seminar

Earlier this week I attended a program sponsored by the The Chicago Metropolitan Agency for Planning, Metropolitan Mayors Caucus and the Federal Reserve Bank of Chicago titled, “Taking Action: Local Government Strategies to Mitigate the Impact of Foreclosures on Communities.” The program was held on Tuesday, May 6, 2008, at the Federal Reserve Bank.

Along with much of the nation, metropolitan Chicago has recently seen a dramatic increase in the number of foreclosures. According to the latest figures in March 2008 from the Woodstock Institute: Between 2005 and 2007, the number of properties with foreclosure filings in the region increased by nearly 80 percent. The number of properties with foreclosure filings grew to 38,215 in 2007 which was an increase of nearly 32 percent from a previous high of 28,997 in 2006. This is on the heels of a 36 percent increase between 2005 and 2006.

Suburban communities have seen the largest recent growth in foreclosure filings. Between 2005 and 2007, the areas with the greatest increases included DuPage County, Northwest Suburban Cook County, and Kane County which all had the number of properties with foreclosure filings roughly double. It is likely that foreclosures will continue to rise in 2008 as regional property values stagnate or decline; refinance options remain limited for homeowners with adjustable rate mortgages; and the monthly mortgage payments on many loans reset to higher levels. However, as foreclosures mount, many suburban communities may also be unable to manage the foreclosure glut.

The objective of this meeting was to provide local government leaders a forum in which to discuss the tools and strategies necessary for mitigating the impact of foreclosures on community. The topics included:

• An overview of the regional foreclosure state of affairs and examine the implications of foreclosures on local government (revenue and assessments, property values, safety, etc.)
  
• Focus attention on the legal aspects of foreclosures in terms of the local authority to enact responsive ordinances and policies aimed at preventing the issues related to building vacancy
  
• Identify best practices, both locally and nationally, where governments have implemented innovative programs to address foreclosures within their communities (for example: maintenance ordinances, vacant building registries, and land banking)

Overall it was quite interesting and put the issue into perspective, some of the ideas are fits for us and I will push them forward here in Round Lake