Delinquent Mortgages Decline While Foreclosures Rise

Foreclosure rates tend to be higher in times of economic downturn, and many commentators anticipated that the number of foreclosures across the country would start to increase as moratoriums ended and the financial impact of the COVID-19 pandemic became a reality. Recent data has shown upticks in overall foreclosure rates throughout the United States, with particular spikes in certain urban areas, including in the Chicago area. According to a recent article in DSNews.com, new statistics show that the overall rate of mortgage delinquencies has declined, but the rate of foreclosures continues to climb. What should you know about recent data on foreclosures? And what should you do if you believe you are at risk of foreclosure? Consider the following information from our Oak Park foreclosure defense attorneys.

Drop in Mortgage Delinquencies Coincides with Increase in Foreclosures

In comparison with mortgage delinquency and foreclosure data from a year ago, the news is good in terms of overall mortgage delinquency rates. Indeed, according to the DSNews.com report, as of January 2023, approximately 2.8% of mortgages in the United States “were in some stage of delinquency,” meaning that they were at least 30 days past due, with some already in the foreclosure process. While that percentage might seem high, it actually represents a 5% decrease from the same time last year in January 2022, when about 3.3% of mortgages were in a stage of delinquency. However, the data does not look as good for foreclosures.

Between January 2022 and January 2023, overall rates of foreclosure have actually increased. In January 2022, approximately 0.2% of all homes were in foreclosure, and by January 2023, that number had risen to 0.3%. While the change might not seem significant since the number is small, the rise is notable given the decline in mortgage delinquencies over the same period.

Avoiding Foreclosure: What are My Options?

If you are behind on your mortgage payments and are at risk of foreclosure, what are your potential options for avoiding foreclosure? You may have a few different options, and you should discuss them with a foreclosure defense attorney in Oak Park. Some possible options include, for example:

• Filing for Chapter 13 bankruptcy, which can allow you to stop the foreclosure process from occurring or moving forward, and can allow you to get caught up on mortgage payments through debt reorganization;
• Short sale, which is a process through which the lender agrees for you to sell your house for less than you owe on the mortgage and to forgive remaining debt; or
• Deed in lieu of foreclosure, in which you would sign over your deed to the house to the lender in order to avoid foreclosure.

Contact a Foreclosure Defense Lawyer in Oak Park

Anyone who is at risk of foreclosure or for whom foreclosure proceedings have already begun should get in touch with an experienced Oak Park foreclosure defense attorney who can help. Our firm can assist you with multiple options that may allow you to avoid foreclosure, from a reorganization bankruptcy that could allow you to stay in your home to a short sale or deed in lieu that could prevent your credit from being impacted fully by a foreclosure. Contact the Emerson Law Firm to learn more about potential options for avoiding foreclosure in Illinois.



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