While the foreclosure crisis has ended in many parts of the country, data from the last year has suggested that many foreclosures remain in the Chicago area, and that numerous foreclosure cases remain in the court system. However, according to a recent article in the Chicago Business Journal, a report from the Federal Reserve Bank of St. Louis indicated that the foreclosure crisis is officially over in Missouri, and that Illinois should soon follow the same course.
What else does the report have to say, and what kind of data does it base its conclusions upon? What can you do in the event that you are facing foreclosure and need assistance making your mortgage payments?
Nearing the End of the Foreclosure Crisis
How does the report draw its conclusion that the foreclosure crisis is nearing its end in Illinois? The recent report examines “the combined rate of mortgages 90 days or more past due plus those in foreclosure,” the article reports. As of September 30, 2016, that rate in Missouri was at 2.3%. At the same date, the rate was at 3.8% in Illinois. How do those numbers compare with the national average? At the end of September, the national average was at 3.20%.
The report took those figures and then explored the “historical averages in each state.” Based on its findings, it contended that the foreclosure crisis—determined by numbers—started in the second quarter of 2008 in Missouri and ended in the state during the first quarter of 2016. The foreclosure crisis, according to the report, actually started earlier in Illinois than in Missouri—in the first quarter of 2008. If the numbers are correct, then the foreclosure crisis will end in Illinois in the fourth quarter of 2016 once all of the data is gathered. The figures look a bit different when compared with historic national averages, however. In that respect, Missouri will have “exited the crisis in the fourth quarter of 2015,” while Illinois will not emerge entirely from the foreclosure crisis until the third quarter of 2017.
What is the most important lesson to learn from the report? As one of its authors points out, the report underscores that “the foreclosure crisis has been a long, miserable experience for many,” but ultimately, the most recent data we have “shows that, at least, the end is in sight.”
What Should You Do if You are at Risk of Foreclosure?
Even when the foreclosure ends according to the data, families in the Chicago area will still remain at risk of foreclosure. What can you do if you are having difficulty making your monthly mortgage payments? According to a tip sheet from Bankrate.com, there are many options, including but not limited to:
- Sell the property as a short sale;
- Deed in lieu of foreclosure;
- Seek a mortgage modification; and
- Speak with an attorney about options for avoiding foreclosure.
Do you have questions about avoiding foreclosure in Chicagoland? And experienced foreclosure defense attorney in Oak Park can assist you. Contact the Emerson Law Firm today to discuss your situation.
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