Due to an overwhelming number of inquiries and interest in the Illinois house bill 4050, HB 4050 for short, ilFLS.com will track the foreclosures in those zip codes throughout 2007.
House Bill 4050, which took affect Sept. 1st of 2006, requires consumers applying for a loan through a mortgage company (banks are excluded) with a credit score of 620 or lower to attend credit counseling if they fall within the targeted Chicago zip codes.
HB 4050 has been the subject of much controversy, especially amongst the affected mortgage agents who are responsible for the $300.00 cost of the credit counseling and experience the resulting delay of the closing on the property for 30-45 days while the counseling is completed.
To end 2006, in the month of December, Chicago had a total of 1290 foreclosures.Let's now take a look at the foreclosures in the zip codes targeted by HB 4050, the anti-predatory lending bill.
HB 4050's targeted zip codes are: 60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643 and 60652
Here are the December foreclosure statistics for the HB 4050 Chicago zip codes:
The zip codes in the HB 4050 bill represented more than 40% of the total number of December foreclosures in Chicago. We will continue to follow these numbers to see what, if any, affect HB 4050 may have on the rate of foreclosure in these neighborhoods.