Federal government and private lender efforts notwithstanding, foreclosures and bank repossessions of homes in the Chicagoland area grew by nearly 20 percent in 2010. Notices of default - the precursor to a foreclosure filing - also rose. This is in spite of the fact that many areas around the country saw a drop in foreclosure filings as the economy recovers.
While there was a decrease in foreclosures statewide in 2010 compared to 2009, gains that had been made early in the year dissipated during the later months. By year's end, one in 27 homes in the Chicago metropolitan area was being foreclosed upon.
According to RealtyTrac, Inc., a real estate listing firm that keeps track of trends affecting mortgage default and foreclosure rates, increases have been seen in several metropolitan areas that were initially somewhat insulated from the foreclosure crisis. Rises were seen in the foreclosure rates in Seattle, Houston, Chicago and 146 other metro areas around the country. RealtyTrac blames the recent uptick in foreclosure filings not on the subprime lending that initially triggered the housing crisis but instead on continued unemployment.
RealtyTrac and other housing industry experts seem to think that foreclosure rates might have been artificially deflated in much of 2010 because of the highly publicized issues affecting filings by some of the nation's largest housing lenders. Since the temporary moratoriums imposed by Bank of America, J.P. Morgan Chase and other lenders have now expired, foreclosures are rapidly rising, and are on track to outpace those filed in 2010.
If you are at risk for foreclosure, the time to act is now. There are legal options like Chapter 7 bankruptcy, loan modification or payment negotiation that might let you keep your home. Consult an experienced financial services attorney in your area to learn more about your legal rights and options.
