2. Overcoming roadblocks to recovery: local strategies
Tom Feltner | Vice President, Policy and Communications
Woodstock Institute | 29 E Madison Suite 1710 | Chicago, Illinois
tfeltner@woodstockinst.org | www.woodstockinst.org
@tfeltner | @woodstockinst | #justeconomy

3. Regional Quarterly Trends in Foreclosure Filings, 2005 to 2011
New Foreclosure Filings
28,000
24,000
20,000
16,000
12,000
8,000
4,000
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Completed Foreclosure Auctions
11,000
9,000
7,000
5,000
3,000
1,000
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

4. Regional Foreclosure Filings
2006
2007
2008
2009

5. Regional Foreclosure Filings
2006
2007
2008
2009

6. Regional Foreclosure Filings
2006
2007
2008
2009

7. Regional Foreclosure Filings
2006
2007
2008
2009

8. Accumulation of Foreclosure Activity in Communities of Color, 2006 to 2010
30.0%
27.0%
26.3%
25.0% 24.4%
23.2%
20.0% 19.0%
15.9%
15.1%
15.0%
12.8%
10.9%
9.7%
10.0% 8.7%
7.0%
5.0%
0.0%
80% or greater African 50% or greater mixed 50% or greater Latino 20-49.9% minority 10-19.9% minority Less than 10% minority
American Minority
Share of Properties Share of Properties with Foreclosure Filings

9. Effect of foreclosure accumulation in Englewood and West Englewood, 2007

10. Effect of foreclosure accumulation in Englewood and West Englewood, 2008

11. Effect of foreclosure accumulation in Englewood and West Englewood, 2009

12. Effect of foreclosure accumulation in Englewood and West Englewood, 2010

13. Chicago region foreclosure process times increasing, at record highs since 2008

14. Strategy #1 – Foreclosure prevention
for homeowners staying in their homes

15. Local strategies need to address unemployment-driven foreclosures,
underwater homeowners
Figure. Foreclosure Filings for Single-family Units in the Six County Chicago Region, by Type
of Mortgage, 2008-2011
100%
90%
80%
70%
Other 60%
Balloon 50%
ARM 40%
FHA/VA 30%
Conventional 20%
10%
0%
2008 2009 2010 2011

16. Local strategies need to address unemployment-driven foreclosures,
underwater homeowners
Figure. Single-family Mortgages Entering Foreclosure in the Six County Chicago Region,
by Period of Origination, 2008-2011
100%
90%
80%
70%
60%
2010 50%
2009 40%
2008 30%
2005-2007
20%
Before 2005
10%
0%
2008 2009 2010 2011

17. Local strategies need to address unemployment-driven foreclosures,
underwater homeowners
Loan-to-value ratios of properties with mortgages in Chicago six county region, fourth
quarter of 2011
100%
90%
80%
LTV < 75
70%
LTV 75-94
LTV 95-99 60%
LTV 100-109 50%
LTV 110-124
40%
LTV > 125
30%
20%
Source:
Proprietary data 10%
on negative
equity; 2010 0%
10 Percent or 10-19.9 Percent 20-49.9 Percent 50-79.9 Percent 80 Percent or 50 Percent or
Decennial less Minority Minority Minority Minority more African more Latino
Census American

18. Local strategies need to address unemployment-driven foreclosures,
underwater homeowners
Figure. Average home equity and outstanding mortgage debt per property in the Chicago six
county region, fourth quarter 2011
$400,000
$350,000
$300,000
$250,000
$200,000
Mortgage
Equity
$150,000
$100,000
$50,000
$0
10 Percent or 10-19.9 Percent 20-49.9 Percent 50-79.9 Percent 80 Percent or 50 Percent or
less Minority Minority Minority Minority more African more Latino
American

19. Local strategies need to address unemployment-driven foreclosures,
underwater homeowners

20. Strategy #2 – Reducing the impact of
vacant properties

21. Concentration of Unsold Properties in Communities of Color
Disparate Impact of Lender-Owned Properties
Unsold REO Properties
64 percent are concentrated in highly African
American communities
Absorption Rate
It will take 25 percent longer for REO properties
in highly African American communities to
be absorbed into the market.
Value Declines
Highly African American communities saw
declines of 35 percent, while primarily white
communities saw declines of 17 percent.

22. Communities of Color Hardest Hit by Vacant Properties
Vacant Properties Associated with Foreclosure
Vacant Properties
18,320 properties identified as vacant or potentially vacant
by the City of Chicago
Nearly 70 percent of all vacant properties on the Chicago
Vacant Buildings Index are associated with a
foreclosure
Red Flag Properties
1,896 properties on the Index are “red flag” properties,
many of which may be lender walkaways
71 percent of red flag properties are located in highly
African American communities, compared to only 7
percent in predominantly white communities
Impact
Shifts approximately $36 million in maintenance costs to
City of Chicago

23. Reducing the impact of vacant properties: City of Chicago vacant property ordinance
Ordinance Requirements Status
Mortgagees of vacant buildings to register In effect since November 2011
within the later of 30 days of becoming
vacant or 60 days after a default. Supported by majority servicers
Mortgagees must appoint an agent located Subject to outstanding lawsuit by FHFA
in Cook County to handle communications
concerning the ordinance.
Mortgagees must maintain and secure
vacant buildings to the standards set by the
City. If not, the mortgagee will be fined
between $500 and $1,000 for each day the
building is in violation of the ordinance.

24. Overcoming roadblocks to recovery: local strategies
Tom Feltner | Vice President, Policy and Communications
Woodstock Institute | 29 E Madison Suite 1710 | Chicago, Illinois
tfeltner@woodstockinst.org | www.woodstockinst.org
@tfeltner | #justeconomy