The crash occurred at about 2:38 a.m. in the 2100-block of West 115th Street.
"It was just one big crash," a neighbor said. "I heard the crash and the crash is what woke me up. And then when I looked out my window, I saw the police coming from all different directions."
Chicago police say they responded to the crash that began as a chase on Interstate 65 in Northwest Indiana. It started after Lake County, Indiana Sheriff's Department deputies began pursuing a stolen black SUV.
The sheriff's office said the driver has active warrants out of Indiana, Illinois and Michigan.
"It was a little surprising because typically it's kind of quiet here, especially because the street is a one-way; so I figure that whatever happens somebody was kind of unfamiliar with the area," the neighbor said.
Authorities said the pursuit continued into the neighborhood, where the driver of the stolen car careened into a parked car, sending the sedan onto the lawn of a home, and the SUV flipped upside-down.
"We were in our bed asleep and we heard a lot of commotion, a lot of sirens," neighbor Huell Collier said.
A police source said a mother, a father and two children, a 3-month old and a 3-year old, who were in the SUV, were all hurt in the collision, as debris from both vehicles littered the roadway.
The same police source said the injured were rushed to an area hospital in critical condition.
Authorities said the 3-year-old boy was expected to be released on Thursday, while the 3-month-old baby remained hospitalized.
The 30-year-old driver was wanted on weapon, robbery, fraud and counterfeiting charges. Authorities said additional charges are pending.
"There was this one guy that they did eventually, when the ambulance arrived, they took him away ... and he was very combative," one neighbor said.
Collier said he heard the mother speaking after the crash.
"She was saying she was a good mother, and we were saying that if you're in this situation how are you such a good mother? And she was also saying that she caught a ride with someone she didn't know. So that was her story," Collier said. "The car had flipped over and the axle was out."
Meanwhile, the Lake County, Indiana Sheriff's Office has not shared any additional information about the incident. Chicago police were not involved in the pursuit.