July 4, 2011 - One downside of rental Chicago real estate that isn’t talked about a lot is the potential for foreclosure. Tenants who have always been current on their rent can be blindsided when their apartment building goes into foreclosure. A new article in the Tribune highlights a report from the Lawyers’ Committee for Better Housing. It found that last year (2010) there were 5,904 forclosure filings against Chicago apartment buildings. That adds up to 17,467 apartments that were involved. Foreclosure filings against apartment buildings this year (2011) are down somewhat, but the report attributes that to the whole foreclosure fiasco, investigations and temporary halts of last year.
The report also found that most of the apartment buildings hit with foreclosure are on the West and South sides of Chicago. Those are the same areas that have the most single-family home foreclosures. Over 10% of rental units in 20 Chicago neighborhoods were hit with foreclosure in 2010. The neighborhoods of East Garfield Park and Avalon Park score higher with a 15% Chicago foreclosure rate last year.
Tomorrow we’ll go over some of the factors that could cause an apartment building to fall into foreclosure and what your rights are if the building you live in does go into foreclosure.
In the meantime, if you’re looking for a new home, there are still plenty of Chicago apartments for rent.