The city of Chicago is working to alleviate the impact of vacant foreclosure properties on its neighborhoods with a new program that has garnered participation from major mortgage servicers and local law firms.
[IMAGE]""Bank of America"":http://www.bankofamerica.com has agreed to register properties with the city when the mortgage is delinquent and the property is identified as vacant and abandoned. The bank will identify up to 150 vacant and abandoned properties in default for referral to the newly created Cook County ""Vacant and Abandoned Building Court Call.""
The new ""court call"" was instituted by Cook County Chief Judge Timothy Evans as a joint initiative between the city and mortgage servicers to address the growing number of distressed properties throughout Chicago.
""The Wirbicki Law Group"":http://www.wirbickilaw.com in Chicago is the first to file foreclosure cases under the county's new vacant and abandoned buildings program. The firm worked directly with the mayor's office and the Cook County court in developing the details of the new program and assisted in finalizing a memorandum of understanding with the city.
[COLUMN_BREAK]The firm explained that the collaboration between the city and mortgage servicers is intended to alleviate the negative effects of distressed properties on Chicago's neighborhoods through agreements for demolition of select properties; alternative disposition of REO assets, including donations to non-profits, and debt negotiation.
The initiative is expected to move empty and abandoned homes through the foreclosure process more quickly in order to return them to viable housing or remove them from the picture to eliminate blight and make way for new uses of the land.
Bank of America says the expedited foreclosure process will significantly reduce the foreclosure time frame from the current average of about 18 months for vacant and abandoned properties.
The bank will also donate foreclosed and vacant condos to the nonprofit ""Community Investment Corporation"":http://www.cicchicago.com/ (CIC) for its Troubled Condos Initiative, a partnership with the city to upgrade, preserve, and stabilize management of affordable rental housing. BofA has already donated 26 condominium units to CIC to expedite their rehab and re-use as affordable rental housing for the city.
""In addition to helping support social efforts, Bank of America is working with the city to help protect residents and communities from the dangers posed by vacant properties,"" said Chicago Mayor Richard M. Daley.
""As we continue to face the worst recession in 70 years, addressing the foreclosure problem is essential,"" Daley said. ""This vacant and abandoned building initiative is a perfect example of public-private partnerships that have moved Chicago forward.""