Apr
20

Illinois Forelcosure Filings Rank Fourth Slowest

April 20, 2012

While the rest of the country breaths a sigh of relief that foreclosure filings fell during the first quarter, Illinois homeowners, including thousands in Chicago communities, haven’t been so lucky.

Illinois PictureRanking fourth behind New York, New Jersey and Florida as the slowest state to process foreclosures, Illinois currently takes an average of 628 days to process a residential foreclosure claim, up 27% from a year ago.

According to RealtyTrac, Illinois ranked third in foreclosure filings (which includes default notices, scheduled auctions and bank repossessions) in March.

This long delay in processing foreclosures causes a negative domino effect in Chicago real estate, as well as the 102 counties that make up the state. By having houses sit in a real estate twilight zone, discovering a housing market bottom from which to build up from is about as hard to find as a Bears fan dressed head to toe in Packers attire.

What is causing the hold up in filing these foreclosures across the state? A main reason that lenders have ceased processing foreclosures is due to the $25 billion dollar deal between 49 states and five of the nations mortgage giants. The agreement, signed in February, is designed to help borrowers who are delinquent and hold banks accountable for foreclosure abuses like the wide spread robo-signing controversy among other loan servicing problems.

One method lenders utilize in order to get the vast amount of distressed home off their books is short sales. A short sale is when both lender and seller agree to take less money from a buyer than what is still owed on the property.

With foreclosures taking so long in Illinois, expect short sales to continue to be a rising force in the Chicago real estate market as lenders and homeowners search for alternatives to the lengthy foreclosure process.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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