Cook County Anticipates Wave of Foreclosures and Evictions

The COVID-19 pandemic is wreaking havoc across the U.S. and the world as a menace to public health, but it is important to remember that the pandemic is also devastating businesses and consumer finances. Millions of Americans have lost their jobs as a result of the pandemic, and many of them have not been able to obtain employment given virus surges, business closures, and health risks. Moreover, many of the people who have lost their jobs due to COVID-19 have also faced substantial medical bills from coronavirus hospitalizations. As such, foreclosure risks are very real. According to a recent article in the Chicago Tribune, Cook County is anticipating a wave of foreclosures and evictions, and is putting a plan in place to help ensure that Chicago residents still have a place to live when the pandemic eases.

While county-wide programs may be able to help certain homeowners in Chicagoland, it is critical to seek advice from an experienced Oak Park foreclosure defense attorney if you are facing foreclosure. We may be able to help you stop the foreclosure and to help you get back on track with your mortgage payments.

What Cook County Proposes

Cook County is launching a program designed to help suburban Cook County residents avoid evictions from their homes, according to the Chicago Tribune article. Consumers advocates recognize that another foreclosure “wave,” potentially similar to what happened in 2008, could be coming. The county’s Early Response Program is designed to provide information and potential relief to debtors in Cook County.

But will any kind of program to temporarily negotiate with landlords or banks be effective in the long run?

Mortgage Delinquencies Rising in the Chicago Area

Chicago and the surrounding suburbs have not yet seen a marked increase in foreclosures, but rising mortgage delinquencies suggest that a foreclosure wave is looming, according to an article in Chicago Agent. Indeed, as that article explains, a new CoreLogic report suggests that temporary “forbearance measures are keeping foreclosures down despite increasing numbers of homeowners falling behind on their mortgages in Chicago and in other cities.” More specifically, that report showed that, “in the Chicago-Naperville-Elgin . . . metropolitan area, 7.5% of mortgages were at least 30 days past due in August and 5% were in serious delinquency.” The report defined a serious delinquency as being late by 60 to 89 days on a mortgage.

Although the recent foreclosure rate in Chicago is down to only 0.5%, that number does not take into account the possibility of foreclosure on the 7.5% of homes that are in delinquency and ultimately could end up in foreclosure. The report underscored how the low rate of foreclosure is not likely to last as forbearance options come to an end and mortgage delinquency rates rise. The Chicago area currently has one of the highest mortgage delinquency rates in the country in terms of metropolitan areas, behind only the metropolitan areas of New York, Miami, Las Vegas, and Houston. What is particularly concerning is the high rate of mortgages that are currently in serious delinquency. Without quick action, many of those homes likely will end up in foreclosure.

Contact an Oak Park Foreclosure Defense Attorney

Ultimately, if you need help with foreclosure defense, you should speak with a consumer protection advocate who has experience with foreclosure defense strategies. One of our Oak Park foreclosure defense attorneys can help. Contact the Emerson Law Firm today.


See Related Blog Posts:

What Can I Do to Avoid Foreclosure During the COVID-19 Pandemic?
Coming Foreclosure “Wave” Will Be Different From 2008

Foreclosure Evictions Postponed for the Holiday Season

Foreclosure activity continues in the Chicago area and throughout Illinois and the country, although foreclosure rates generally continue to decline. Indeed, a recent report from Business Wire indicated that serious delinquency rates were at their lowest in years, but 4.4% of mortgages remain at “some stage of delinquency.” In other words, more than 4% of mortgages are anywhere from 30 days past due to at the point of foreclosure eviction or foreclosure sale. The current foreclosure inventory rate is at about 0.5%. Despite the fact that foreclosure rates continue to decline or remain relatively low, it is important to remember that a number of homeowners are still facing foreclosure.

While Fannie Mae and Freddie Mac will continue to move through various stages of the foreclosure process during the holiday season, a recent article in HousingWire reported that both will be suspending foreclosure eviction lockouts between December 17, 2018 and January 2, 2019 for the holiday season.

Extending Timeline for Foreclosure Evictions in December

For Fannie Mae properties, any single-family homes, as well as two to four-unit properties, will have an extended timeline for foreclosure evictions. Starting December 17, no families will be evicted from those properties until after January 2 of the new year. Similarly, the foreclosure eviction timeline will also be extended for Freddie Mac properties, but the extension is a broader one. All foreclosed Freddie Mac properties that are currently occupied homes will not face evictions during the same time period.

According to the Fannie Mae vice president of single-family real estate, “We believe it is important to extend the timeline of help for struggling borrowers during the holidays.” Fannie Mae also encourages homeowners who are facing foreclosure to use this extra time to seek other options for foreclosure prevention. The Freddie Mac vice president of single-family servicer performance management echoed these sentiments, emphasizing how the mortgage servicer is “suspending evictions from Freddie Mac-owned homes to help provide families with a greater measure of certainty during the upcoming holiday season.”

Yet, to be clear, not all foreclosure activity is suspended. Only foreclosure evictions have been suspended. This means that other foreclosure activity, including both pre-foreclosure and post-foreclosure activity, will continue throughout December 2018 and into the new year.

Avoiding Foreclosure This Holiday Season
If you are facing foreclosure, there are numerous options that may be available to you this holiday season. An article from HGTV cites the following as common options for homeowners who are facing foreclosure:

• Contact your lender to work out a compromise; 
• Sell the home through a short sale, which often does not result in a profit for the homeowner but allows the homeowner to avoid damaging his or her credit any further and allows the homeowner to avoid foreclosure; 
• Deed in lieu of foreclosure, through which the homeowner essentially signs the home back over the bank (but is not the best option for preserving a homeowner’s credit, and typically is only an option after a short sale and other possibilities no longer are available); and 
• Chapter 13 bankruptcy, which can allow a homeowner to stay in his or her home while developing a repayment plan to pay off debt (once the homeowner files for Chapter 13 bankruptcy, the automatic stay prevents the foreclosure process from going any further). 

Contact an Oak Park Foreclosure Defense Attorney
If you need assistance avoiding foreclosure this holiday season, you should speak with a foreclosure defense lawyer in Oak Park as soon as possible. Contact the Emerson Law Firm to learn more about your options.



See Related Blog Posts:
Wells Fargo Admits to Hundreds of Wrongful Foreclosures
FHFA Report on Foreclosure Prevention