Throughout the past three years Apartment Building foreclosure filing rates remain persistently high. LCBH found that from 2009 to 2011, more than 50,000 rental units went into foreclosure in Chicago, which comprises nine percent of Chicago’s entire rental housing stock. LCBH also found that more units in Apartment Buildings are impacted by foreclosure filings than were single-family and condominium units in Chicago, indicating that a greater number of renter households are likely affected than owner households.
The impact of unremitting foreclosures over the last three years has drastically impaired the rental housing market, while having devastating effects on individual households, Community Areas, and the City as a whole.
In the report and accompanying fact sheet, LCBH identified four issues within the foreclosure crisis that impact renters, Community Areas, and the City.
- Lack of information regarding renters’ rights during foreclosure leaving tenants susceptible to housing instability
- Community-wide Impact of Foreclosures on Apartment Buildings cause community destabilization
- Vacant Buildings are a City-wide Problem and siphon substantial municipal funds
- Banks Refuse to Keep Renters in their Homes exacerbating Chicago’s rental housing shortage
Key Facts about Apartment Building Foreclosures from 2009-2011
- There were 4,477 newly-filed foreclosures on Apartment Buildings in 2011 impacting 13,814 units—about 5,000 more Apartment Building units than single-family and condominium units affected during this same time period.
- Of the 2011 foreclosures on Apartment Buildings, about half (2,134) were filed by only five lenders/servicers: Wells Fargo, Bank of America, Chase, US Bank, and Citi Mortgage; whereas in 2010, about a quarter (1,438) were filed by the top five lenders/servicers.
- Of the completed sales in 2011 that matched with newly-filed Apartment Building foreclosures in LCBH’s database, 84% resulted in bank ownership.
- Over the past three years, 16,941 Apartment Buildings in Chicago went into foreclosure, containing 51,972 units. 76% of these units were in 2-4 units buildings.
- Nearly 1 out of every 10 rental units in Chicago has been impacted by foreclosure in just three years.
- 31 (about 40%) of Chicago’s Community Areas had between 10–23% of their individual rental housing stock impacted by foreclosure from 2009-2011.