Housing Crisis to Last a Longer Time

The housing mess that America is currently experiencing had hit Humboldt Park way before the richer neighborhoods were hit. However, much like the most part of the country, it may have to endure the tough economic slowdown for a longer time.

According to John Groene, the director of Neighborhood Housing Services of Chicago or NHS, everything is on hold in their place, and the end is just nowhere in sight.

The large stock of available houses in West Humboldt Park is consisted of well-built but old redbrick houses, which would sell for larger amounts if they were in the wealthier parts of Chicago. Several blocks have one or two foreclosed houses, some even half six for every block.

On the hardly hit areas, drug dealers can be commonly seen on the street corners. Most of their customers come from white neighborhoods. The vacant residential properties are highly attractive to crimes, and a few residents make it easier for criminals to set up camp.

And even though West Humboldt Park is at the low end of the housing market with its unique issues and hassles, it still has a lot in common with the rest of the country’s highly problematic housing industry. A lot of people do not have jobs, and they also lack a good credit standing for them to be able to get approved for a loan. Add negative equity on most homes to that and you got a major hindrance and slowdown in terms of recovery.

Before the housing crisis, which was so far the worst one that hit the country since the Great Depression, NHS already targeted the worst blocks in the working class locations all across Chicago.

However, foreclosures and decreasing resources have complicated the situation, and it has forced the NHS to give more attention on blocks that are doing better than the others, so that it would be able to give basic triage to areas which are struggling. People who donate to NHS, as well as the foundation itself, have all been hurt by the housing crisis and are giving less and less.

Efforts to make the troubled neighborhoods stronger have been dampened by the allegations against mortgage lenders that have been using fraudulent foreclosure documents. This has been delaying the sales of foreclosed properties.

West Humboldt Park is highly susceptible. From the start of 2010 until September 30, there had been 380 foreclosures that were filed in the area.