Englewood Chicago Is A Poor Neighborhood

I am of the opinion that subprime mortgage lenders, foreclosed on low FICO scoring, that is working class and low income neighborhoods, which includes Englewood, Illinois. 

Whereas, on the other hand, bankers have held off foreclosing on Alt-A and Option-Arms higher FICO scoring middle class neighborhoods, as FASB 157 has preserved he lending portfolio at mark-to-manager’s estimate, rather than to mark-to-market. Documentation for such holding off of foreclosing comes from Dr Housing Bubble who relates that 24% of those that have made no payment in the last year are still not in foreclosure!  In other words, you have tens of thousands of people living rent free while banks pretend everything is fine and claim billions of dollars in profits.  What a sham!  Just look at the 24 months with no payment column.  39,000 people have not made a payment in 2 years and no foreclosure has been filed! 

And he provides the Nationalized Housing Market Chart which shows that the percentage of GSE financed homes fell from 2003 to 2006 as the banks issued Alt-A and Option-Arms first, second and third mortgages; and then bundled and secuiritized these into CDOs; which some sold short and others wrote CLOs on. These are the ones that the banks have on their books that are just sitting there. These contrast with the REOs, that is the suprime loans which have been written off.

Dr Housing Bubble says it this way in his article  and presents the chart:  “Banks are moving on current REOs (the small batch that they have) and pumping this up as good news but the 90 days plus foreclosure number is still trending up.  How is this magic done?  We’ve talked about it above.  You simply don’t move on delinquent homeowners.  You ignore actual losses.  You mark your assets to fantasy valuations.”

I present information on the Englewood neighborhood of Chicago. 

Blockshopper Englewood IL Neighborhood

Redfin Englewood IL Neighborhood

City-Data Englewood IL, 60621

AOL Neighborhoods Englewood IL

NeighborhoodScout relates that Wallace St. and 58th St. Chicago, IL 60621 is the 24rd worst neighborhood in America.

Mike Mish Shedlock recently wrote an article that Illinois is bankrupt, financially, politically, and morally. When it comes to politicians in jail, Illinois is at the top of the list. The volcano has already erupted, but Illinois just sits, bankrupting companies the state owes money to but has not paid.

I believe that social chaos could easily erupt in Illinois very soon as the state fails to pay for social services; and property values will fall hard and fast in Illinois.

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