National Foreclosure Rates at a Five Year Low

October 16, 2012

chicago real estate foreclosure rates Yesterday we reported that the foreclosure process forĀ real estate in Chicago takes an average of two years. And, while the state of Illinois has recently been experiencing higher than average foreclosure rates, the good news is that the overall national foreclosure rates is at its lowest level since 2007.

According to RealtyTrac, September foreclosure rates were at a five year low. There were 180,247 filings overall, which included default notices, scheduled auctions and take-backs. This is a 7 percent decrease from August and a 16 percent decrease from September 2011.

So what’s the reason behind the low foreclosure rates?

Economists say that recent job and overall growth in the economy plus home price stabilization has been a factor in decreasing the foreclosure rate. Banks are also working harder to reduce the chances of a foreclosure by restructuring principal and reduction rates.

The states with the biggest drop in foreclosure rates were California, Arizona, Michigan, Georgia and Texas. One of the reasons these states have lower foreclosure rates is because court approval is not required for foreclosures. Illinois, on the other hand, is a state where the foreclosure process must go through the courts.

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