Local foreclosures jump
By Francine Knowles email@example.com August 9, 2012 9:31AM
A foreclosure sign stands on top of a sale sign outside a home. | The Associated Press
Foreclosure filings by county
Total for July, 2012: 689
Change from June, 2012: down 41.1 percent
Change from July, 2011: up. 34.31 percent
Total for July, 2012: 225
Change from June, 2012: down 38.1 percent
Change from July, 2011: up 37.2 percent
Total for July, 2012: 1,176
Change from June, 2012: down 15.5 percent
Change from July, 2011: up 102.06 percent
Updated: September 10, 2012 1:46PM
The number of homes in the Chicago metropolitan area hit with foreclosure filings jumped 35 percent in July from a year earlier, and bank repossessions spiked 23 percent in the area and the state, bucking national trends, a RealtyTrac report released Thursday showed.
July marked the seventh straight month of annual increases in homes receiving foreclosure filings in the area and in Illinois, and the numbers aren’t expected to return to more-normal levels until mid-2014, said RealtyTrac Vice President Daren Blomquist.
The increases reversed declines in filings last year caused by documentation issues that slowed the process and that have since been resolved.
“We’re seeing a rebound in foreclosure activity off of artificially low levels last year,” said Blomquist. “What we’ve seen over the past year and a half is kind of a false bottom. The market is reaping the consequences of delaying foreclosures in the form of increased numbers this year.”
That’s bad news for the housing market. It means foreclosures “are going to continue to destabilize home values and home prices in the Chicago market and Illinois as a whole,” he said.
There were 12,683 homes in the Chicago metro area hit with filings in July, up 35 percent from a year earlier and down 9.5 percent from June. One in every 299 homes in the area was the subject of a filing.
In normal times, fewer than 5,000 homes would receive filings each month, Blomquist noted.
In all of Illinois, 13,774 homes received filings last month, up 29.6 percent from a year earlier and down 7.8 percent from June.
Nationally, filings totaled 191,925, down 9.8 percent from a year earlier and down nearly 3 percent from June.
There are two trends going on nationally, according to Blomquist.
“There’s one set of markets and states that are very similar to Chicago where the foreclosure numbers are resurging, and those tend to be states that have a longer foreclosure process, states like Illinois, Florida, New Jersey, New York, Pennsylvania and Indiana,” he said.
“On the flipside, there’s a group of states and markets where foreclosure activity has continued the trend that we saw last year of a downward trajectory, states like California, Nevada, Arizona, Texas, Virginia, states where the foreclosure process is shorter and was not delayed as much last year by questions about the paperwork.”
The overall higher foreclosure numbers in the Chicago area and state are problematic short-term, Blomquist said, but long-term they’re “getting the market to the point where foreclosure levels are back to normal and home prices can start appreciating in a more sustainable long-term way.”