If you look at the latest foreclosure statistics, compiled by RealtyTrac.com, you would see the climbing rate of foreclosures both locally, statewide, and nationally shows little signs of abating.
The State of Illinois shows a 57.99% increase in homes in some stage of foreclosure during the Second Quarter, 2008, versus one year ago. One in 193 homes statewide is in foreclosure, and the number of foreclosures has jumped nearly 16% since the first quarter of this year. Cook County added 5,944 foreclosed properties in May, 2008 - one for every 362 housing units here.
Across the U.S. 739,714 homes received at least one notice involving foreclosure last quarter - a staggering increase of 121% versus the Second Quarter, 2007. The usual culprits: high homes-for-sale inventories, sliding market values, tightening standards in the lending industry, and a tight U.S. Economy leaving fewer Americans with the money to make their house payments, let alone consider buying a new home.
Many, especially in the hardest-hit areas in California, Nevada, Florida, and Arizona, owe far more than their home is worth, and cannot find refinancing due to low or negative equity. In Stockton, California, homeowners face the highest foreclosure rates in the country, with one out of every 25 homeowners there in default, and facing foreclosure action.
According to RealtyTrac, banks took back ownership on 222,000properties nationwide last quarter. Repos by banks accounted for 30% of total foreclosure activity during the Second Quarter, 2008 - up 24% from the First Quarter.
Mark Zandi, Chief Economist at Moody's Economy.com, estimates that in excess of 2.8 Million home owners will be at some stage of the foreclosure process by the end of 2009.
The heightened foreclosure numbers come as the U.S. Congress just passed a massive Housing Relief Bill this weekend, which is expected to be signed into law by President Bush during the coming week. The bill creates tighter rules for new mortgages, though tighter controls on giant, federally-sponsored mortgage guarantors and investors Fannie Mae and Freddie Mac.
It will also create a permanent, government-sponsored Affordable Housing Program, as well as a special refinancing program that can benefit an estimated 400,000 distressed homeowners currently facing or about to be facing foreclosure actions.
See our post today at BlogChicagoHomes.com for more information. The post links to J.W. Elphinsotne's article in last Friday's Chicago Tribune. That article contains an informative video link as well. We also include a link on our Blog Center to the RealtyTrac.com latest U.S. Foreclosure Data.
DEAN & DEAN'S TEAM CHICAGO