Illinois August Foreclosure Rate Highest in the U.S.

September 17, 2012

illinois and chicago area foreclosuresThe Illinois and Chicago real estate markets are still struggling with high foreclosure rates. In August, Illinois had the highest foreclosure rate in the nation and one out every 298 homes received a foreclosure notice, according to RealtyTrac.

This is the first time Illinois has led the nation in foreclosures since January 2005. When comparing the 2012 results with numbers from August 2011, default notices rose 18 percent, bank repossessions increased 41 percent and notices of scheduled foreclosure auctions rose 116 percent.

On an overall scale, foreclosure activity in Illinois rose 29 percent from July and 42 percent from August of last year.

The report also stated that most foreclosure activity was centered in the Chicago area and 91 percent of all foreclosed homes in Illinois were located in or around Chicago.

Foreclosure rates in Illinois are correlated to the state’s high unemployment rate, which was 8.9 percent in July and higher than the national unemployment average in the past 20 months.

Illinois was also not the only state to see a rise in foreclosures. New Jersey, New York, Maryland and Pennsylvania are also struggling with high foreclosure rates.

On a national level, one in every 681 homes received a foreclosure filing in August.

While the August foreclosure reports may seem concerning, it is important that Chicago area homeowners also take note of positive news in the real estate industry. Recently the National Association of Realtors reported that Chicago homes on the market are taking less time to sell.

Another recent article reported that Springfield, Illinois, made the list of improving housing markets in September. The success of metro areas such as Springfield could mean that improvement in the real estate industry may finally be moving closer to home.

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