High End Chicago Area Homes are being Foreclosed.

High End Chicago Area Homes are being Foreclosed.

This is such a rare event for the Lake Forest area. Not any more. It is finally being released from the banks, that short sales are incompasing the  complete real estate market. How about your area? Now Banks can not longer hold on to the high end properities due to changes in regulations. So the fall market will be a very soft market for the high end homes too.

From the New York Times Chicago News Cooperative:

“In the first half of 2010, the largest increases in new foreclosures occurred in the region’s middle- and higher-income communities,” according to a report this month by the Woodstock Institute, which tracks housing trends in the region.

DuPage County was hardest hit in the Chicago metropolitan area, with a 74.8 percent increase in new filings in the first six months of 2010; Lake County, home to Lake Forest, was second, with a 64.9 percent jump. But in Lake Forest, the increase in the number of foreclosures was a jarring 78.9 percent.

An examination of real estate transactions in Lake Forest through the end of July found that of the 127 houses sold this year, 18 of them, or 14 percent, were either in foreclosure or were transferred on so-called short sales — that is, when the selling price falls short of the amount owed on the mortgage.

The article describes how some homes on Lake Michigan which would have sold for $10 to $11 million previously are now being “whispered” about being for sale for $4 million to $5 million.

 

Far from poor, real estate woes nip at Lake Forest [New York Times Chicago News Cooperative, Tom Hundley, August 7, 2010]