HOME FORECLOSURES JUMP 18% IN ILLINOIS – OH NO!

So last week several newspapers reported (Crains, Chicago Tribune…the list goes on) that home foreclosures in Illinois jumped 17.6% from the previous month. Sounds bad doesn’t it? Well, it really isn’t all that bad. RealtyTrac who follows foreclosures like a hawk states that this is more than likely due to paperwork issues being resolved within the banks.

So what we really want to do is look at year over year data and look at filing data. A filing for foreclosure is when the bank actually files the paperwork with the court. Basically what they are doing is exercising their right in the mortgage documents to accelerate the mortgage (make it all due in full) and obtain possession of the property so they can sell it to regain the amount owed. The actual process of filing for foreclosure from the time you miss a payment can vary by bank. You’re technically in default once you miss a single payment. However, banks are currently taking anywhere from 3.5 to 6 months to file foreclosure on your property and those are the banks that have their stuff in order. The actual filings then include the following: default notices, auction sale notices and actual bank repossessions.

OK – So Lets look at filings for August year over year. This August, 2011, One in every 424 housing units in the state received a filing. This rate is down almost 26% from last August. So when we sit back and not panic and look at the actual data….we realize it could be a lot worse!

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