Great, some banks are now walking away from foreclosed properties? Does that mean Chicago will now have tons of boarded up buildings like in Detroit?
Hopefully not, but a research group, The Woodstock Institute, said there were approximately 2,000 of these vacant homes in Chicago. To sum it up, some banks who have a homeowner who stops paying the mortgage, dump it when the bank servicing the loan files a foreclosure. Especially if the homeowner moves out, the bank may then decide it doesn’t make financial sense to actually take ownership.
I am sure the homeowner would be interested in knowing, they could have stayed. Do you think they will go back once they know? Who picks up the tab? Who then owns the home?