• Delinquent Homeowners Stay in their Homes up to 15 Months

    Illinois homeowners who are facing the foreclosure process have up to 494 days to stay in their homes before eviction. The time between filing and eviction has increased since the first quarter of 2007. At that time, the average foreclosure lasted all of 243 days and the housing crisis had only just begun.

    Individuals trying to keep their house benefit from the lag time, as well as those who do not want to keep the property. Those wanting to keep the property can utilize the time to attempt a refinance of their mortgage, and those who do not want the house can live rent-free while saving their money. Homeowners can also use the time to attempt a short sale .

    The large volume of foreclosure cases entered into the courts play a large role in slowing down the process. Courts are having a hard time keeping up with the amount of new cases filed on a daily basis. The “robosigning” controversy has added to the slowdown as lenders and loan servicers re-examine their documentation of bad loans.

    Illinois laws also add to the problem, as it requires lenders to work through the courts to foreclose on properties. One such time consuming requirement is a sheriff’s sale that requires setting an actual date with the county sheriff’s office.

    No end to the foreclosure issue is in sight, and the potential of “strategic defaults” by underwater homeowners is on the horizon, adding to the already overloaded court system.

    If you are looking for foreclosure help, contact a Chicago foreclosure attorney. He can review your situation and suggest a course of action.

  • Foreclosures Represent 29 Percent of Home Sales in the First Quarter

    Almost 30 percent of all homes sold in Illinois during the first quarter were foreclosures. This number is down considerably from the first quarter of 2010.

    The 5,529 homes were sold as foreclosures during the first three months of the year, ending in March. This number is down 38 percent from the previous year and down 6 percent from the last quarter of 2010. Illinois is still one of the states with the best deals for buyers.

    The average price of a foreclosed home for the first quarter is $132,983, a nearly 41 percent discount from the sales prices of non-foreclosed homes. Bank owned or repossessed properties sold for 48 percent off the sales price of non-distressed homes. Homes that are in default but not yet repossessed by lenders averaged 19 percent off the average non-foreclosure price. Short sales are not included in the data.

    The Federal Housing Finance Agency issued its quarterly house price index on May 25, 2011. The data shows how foreclosure sales are dragging down overall home values. According to FHFA, Chicago are home prices are down 5 percent as compared to the final quarter of 2010, 9.5 percent from the period one year ago, and 26 percent from five years ago.

    If you are in need of foreclosure help, contact a Chicago foreclosure lawyer for more information.