There is a misguided assumption that the housing crisis is over. Several years have passed since the bubble first burst when homeowners across our area found themselves in significant financial trouble, often through no fault of their own. However, the Oak Park and River Forest foreclosure attorneys at our firm are well aware that the problem is far from over. The hole created by the recession was deep--we are yet to pull our way out of it.
For example, this week Chicago Real Estate Daily explained how Illinois foreclosures rose substantially last month. The latest RealtyTrac report found that there were 16, 318 foreclosure filings in Illinois in May. That represents a 29% jump from April and a shocking 54% jump from May of 2011. For purposes of this statistic the total foreclosures includes default notices, auction-sale notices, and bank repossessions.
These figures work out to foreclosures on one in every three hundred and twenty five housing units in the state. That rate places Illinois among the worst in the country--fifth out of fifty states. Only Georgia, Arizona, Nevada, and California posted higher foreclosure rates last month.
Chicago-specific foreclosures are no better. The city had a foreclosure for every two hundred and fifty two housing units--the fourth worst out of the top twenty major metropolitan units.
Those working on Oak Park and River Forest mortgage foreclosure defense strategies understand that these figures are yet another reminder that that the foreclosure crisis is far from over. Families in our area and across the state continue to face problems meeting mortgage obligations and getting back on track after financial setbacks in recent years.
One of the reasons for the jump in recent foreclosures are the backlog that built up following the “robo-signing” crisis. Banks consistently cut legal corners in their effort to secure their mortgage, resulting in attempts to unfairly skirt the rights of homeowners. Fortunately many legal professionals worked to defend homeowners, forcing a temporary moratorium on filings that has since been lifted.
Dealing with an Illinois Foreclosure
Local residents who receive notices should understand that they have many options. Simply doing nothing and allowing the process to unfold is often the least advisable option. Instead, it is important to visit with an Illinois foreclosure defense lawyer to learn about ways to deal with the issue in your case.
For example, the Chicago Daily Real Estate Daily article noted how RealtyTrac officials admitted that many of the foreclosures will not actually result in bank repossessions. Instead, things like short sales are going to be used more often. A legal professional can explain how options like a short sale, deed in lieu of foreclosure, or loan modification might be appropriate in your case.
It remains important not to go into negotiations with the bank without a full understanding of what the long-term repercussions might be. For one thing, it is crucial to have an attorney guarantee that you do not receive a deficiency judgment after working on agreements with the bank. The whole point is to deal with the situation in a way that provides you a clean slate to get things back on track.
See Our Related Blog Posts:
I’ve Got Multiple Mortgages, Can I Still Short Sell?
High Percentage of Underwater Mortgages in Chicagoland
(Photo Courtesy of visualpanic)