Illinois Foreclosure Rate Increases in November

December 16, 2012

chicago real esate foreclosures

Residential foreclosure rates in Illinois rose in November, but are still on the decline compared to October’s numbers. One out of every 392 Illinois homes has a foreclosure filing, which is the third highest foreclosure rate in the country, according to RealtyTrac, Inc.

On a national level, the number of foreclosure filings fell 3 percent from October, and the drop in foreclosure activity is a sign that the housing market is beginning to recover. As the economy improves, fewer homeowners are defaulting on their mortgages. Foreclosures are also no longer a major bargain. In September, the average discount on a foreclosed home was only 8 percent below market value.

The current high foreclosure in Illinois rate isn’t necessarily a bad sign. Before the housing market can fully recover and new home construction can pick up again, the current foreclosure inventory will need to be sold. It is also important to note that Illinois foreclosure rates consistently rank higher than average because all foreclosures must be finalized through the courts.

As of September, the Chicago real estate market had the 11th highest foreclosure rate of large metro areas, but this number has been decreasing since the summer. It is predicted that foreclosure rates will begin to stabilize in early 2013 after lenders are able to sell more of their current backlog.

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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