Local Foreclosures Spike, But Is It a Paperwork Issue?

September 15, 2011

The amount of metro Chicago homeowners in foreclosure last month jumped over the previous month, though the increase could be attributed back to the robo-signing controversy.

According to RealtyTrac, 11,226 homes in the Chicago metropolitan area received a foreclosure filing during the month of August. That’s a 19.5 percent increase from July.

couple looking at mail and looking upsetBut it’s also a 28.2 percent drop from August 2010.

In Illinois, 12,493 homes were in some stage of foreclosure last month, a 17.6 percent hike from July but a 25.7 percent decline from the same month last year.

Nationally, 228,098 homes received a foreclosure notice in August, up 7 percent from July but down 33 percent from August 2010.

“The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems,” said James Saccacio, chief executive officer of RealtyTrac. “It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process.”

The Chicago area sits above the national average when it comes to foreclosure rates.

In August, one in every 570 U.S. homes was hit with a foreclosure filing.

In Illinois, it was one in every 424 homes, and in Cook County, one in every 329 homes entered the foreclosure process.

Other local counties:

*Will: One in every 269 homes received a foreclosure filing in August.

*Lake: One in every 258

*Kane: One in every 239

*McHenry: One in every 215

*Kendall: One in every 148

Illinois posted the fourth highest state total for foreclosure filings in August, but there may be help on the way.

Unemployed and underemployed homeowners in Illinois could receive some mortgage assistance under a new plan expected to be unveiled this week. Check back to Chicagoland Real Estate Forum for that story.

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