Why might it be a good thing for more foreclosures to be completed in Chicagoland? You might be asking yourself: Does this mean more people losing their homes to foreclosure? Generally speaking, the desire to speed up the foreclosure process on properties throughout the Chicago area does not come from a desire for new foreclosure processes to begin. Instead, it is usually a plea to complete the foreclosure process on homes that have long been empty and, as a result of their status as foreclosures, damaging the real estate market. According to a recent article in the Chicago Tribune, “real estate values in Chicago and many of its suburbs have not fully rebounded from the Great Recession of 2008,” especially when you look at Chicago’s statistics in relation to other urban areas.
What is the problem when it comes to Chicago’s real estate market? In short, there are still too many uncompleted foreclosures, and they are harming economic recovery.
Housing Market in Chicago Lagging Behind
As the article explains, a recent story in Crain’s Chicago Business reported that “home prices here over the past decade have lagged the national recovery by about 20%.” In practice, what that means is that Chicago has lost out on about $107 billion total, which “has huge ramifications for the area’s economy.” How is the rest of the economy in the Chicago area impacted by home sales that are, on average, lower than the national rate?
In short, when the real estate market is weak, it has long-term effects. For instance, if a homeowner knows that she cannot put a certain price tag on her house or condo if she plans to sell it, then she is likely to spend less money in general—not just when it comes to her home, but on consumer items, as well. In addition, statistics suggest that homeowner is also going to be “more resistant to paying higher taxes.” The fact that property tax referenda in Chicago have failed, according to the Chicago Tribune article, are indicative of this trend.
Foreclosures May be to Blame for Chicago’s Less-Than-Stellar Real Estate Market
What is leading to the weak Chicago real estate market? While there are no definitive studies that can point to a single factor, some commentators believe that the underlying problem is lingering foreclosures. As the article intimates, the city of Chicago has “yet to come to grips with the enormity of the damage caused by the tsunami of residential foreclosures here in the late 2000s.” Why are foreclosures to blame? The article compares Chicago’s statistics to those of other cities that are also behind the curve in terms of real estate market recovery. For instance, like Chicago, Miami, Tampa, Phoenix, and Las Vegas are also experiencing a relatively weak real estate market. What do all of these cities have in common? They were among the “hardest hit by foreclosures.”
It takes a long time for the foreclosure process to reach completion in Cook County. Although the total number of properties in various stages of foreclosure has declined dramatically since the late 2000s, many properties remain in the system.
Contact a Chicago Foreclosure Defense Lawyer
Do you have questions about avoiding foreclosure or dealing with a property that is already in foreclosure? An experienced foreclosure defense attorney in Oak Park can help you. Contact the Emerson Law Firm to learn more.
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