"What this means is that the Greater Chicago metro looks rather similar to the shocking situation in NYC and Long Island. Here is my simple conclusion: When the banks finally begin to take action on these delinquent owners in the NYC and Chicago metro areas, home prices will start to collapse.
"Is this situation also prevalent in other major metros? I'm working on that. Stay tuned."
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This state of affairs would seem to be the best explanation for continued Federal Reserve policies of near zero interest rates and quantitative easing, long after the panic of 2008. The housing crisis remains a banking crisis requiring extraordinary leniency toward banks to give them time to repair their balance sheets. The dead weight of non-performing mortgage loans remains the elephant in the American living room.
