Wednesday, June 25, 2014

Remnants of the Foreclosure Crisis

Final Stages of Housing Crisis, Says RealtyTrac
The nationwide foreclosure crisis has been nearing its end for quite a few months, and Chicago residents have been in various stages of financial recovery as neighborhoods begin to return to their pre-crash characters.  So why did RealtyTrac recently report an increase in completed foreclosures and bank repossessions?  According to a recent article in Mortgage News Daily, April statistics that showed a rise in bank repossessions and completed foreclosures is actually an indication that “the housing crisis is in its final stages.”
The statistics showed that overall foreclosure filings were down, and these included default notices and scheduled auctions.  Specifically, the total number dropped by 1 person to about 116,000.  However, data showed that the number of completed foreclosures actually rose last month by 4 percent to more than 30,000 completed foreclosures.
If you have questions about foreclosures in the Chicago area, contact an experienced Oak Park foreclosure defense lawyer.  The dedicated attorneys at the Emerson Law Firm can answer your questions today.
Illinois Among Recovering States?
According to RealtyTrac data, Illinois had the eighth-biggest REO (real estate ownership) increase from April 2013, with a 55 percent change from last year.  In other words, bank repossessions rose by 55 percent in Illinois.  Other states with particularly high percentage changes in REO increases included Iowa, New York, Delaware, Oregon, Nebraska, New Jersey, and Kentucky.  Daren Blomquist, the vice president at RealtyTrac, emphasized that “the rise in bank repossessions in many states,” like Illinois, is “a sign that those markets are working through the final remnants of foreclosures left over from the recent housing crisis.”
In other words, more repossessions means getting more abandoned and “bottom-of-the-barrel” properties into the hands of buyers and investors who can help to turn blemished neighborhoods around.  Blomquist explained that “these incoming REOs,” or those that have recently increased the statistical number of bank repossessions, “will likely be best-suited” for buyers and investors who are “willing to do more extensive rehab.”
And all in all, foreclosures are down when we take a look at the numbers from last year.  Foreclosure filings dropped by 20 percent from April 2013, completed foreclosures are down by 14 percent from this time last year, and foreclosure auctions have decreased by more than 20 percent.  The total percentage of housing units with foreclosure activity has decreased substantially in Illinois.
However, our state still had one of the highest rates of foreclosure filing per unit, with one in every 700.  But Illinois isn’t the worst state in the country when it comes to foreclosure filings.  As in previous months, Florida still ranks at the top of the list with a filing on approximately one in every 400 units, which is “almost three times the national average,” according to RealtyTrac.
Contact a Chicago Foreclosure Defense Lawyer
Just because the foreclosure crisis is nearing its end doesn’t mean that Chicago families are in the clear.  Indeed, despite the continuing economic recovery, many Illinois residents continue to struggle with debt and monthly mortgage payment.  An experienced consumer protection attorney at the Emerson Law Firm can talk with you about your situation today.  Contact us to learn more about how we can help.
See Related Blog Posts:
Incentives to Buy Illinois Foreclosures