Probe Continues as all 50 States Attempt to Stop Foreclosures
The Chicago Tribune (10/14/10, page 27) reported today that President Obama would likely not take action to stop foreclosures. The administration believes that the foreclosure moratorium that some banks have voluntarily undertaken will drive prices down more and delay the recovery of the real estate market if there were a nationwide suspension of foreclosures.
In September, 1 in 99 Plainfield homes received a foreclosure filing with 208 homes receiving notice. This represents a decline in foreclosure activity as there were 266 Plainfield foreclosures in July and 243 in August. The average price for foreclosures in Plainfield is $169,461, according to Realtytrac. This represents an average discount of 24% compared to homes for sale that are not foreclosures. The Plainfield foreclosure rate of 1.01% is nearly double the rate for Will county (.57%). The high rates of foreclosure in Plainfield result from the high growth rates in the early 2000's and a large number of buyers who participated in subprime loans.
Shorewood had 36 foreclosures filed in September. The average home price of homes for sale in Shorewood is $243,621 with foreclosure sales being discounted $77,701 or 32%. Currently, there are 343 Shorewood homes in foreclosure, with 47% in the preforeclosure category.
Joliet recorded 268 according to Realtytrac, which represents 1 in every 241 home. Over the last 3 months, the number of foreclosures has dropped from 312 in July. Currently, there are 2,182 homes in foreclosure. Joliet homes average price was $113,000 in September and the average discount for foreclosed homes has averaged 15.4% since April 2010.
There are several avenues that homeowners can pursue to avoid foreclosure. As soon as a homeowner realizes that they are struggling to pay the bills, a loan modification should be requested of the lender. After a few payments are missed lenders may not allow loan modification and a short sale should be pursued if the homeowner does not have any equity in the home. As the homes auction date approaches, homeowner may want to investigate the option of deed in lieu or allow the home to be foreclosed. Another option for some homeowners may be foreclosure, but this may only temporarily save the home as a lender may be able to pursue foreclosure once the bankrupcty is dismissed. Generally, loan modification and short sale are preferred to foreclosure or bankruptcy.
Foreclosure information is available from the government and many other sources. Buyers can take advantage of lower prices and rates that reached a the lowest level since 1951 this week. Freddie Mac reported that 30 yr mortgage rates reached 4.19% with .8 pts on average.
There are many misconceptions from people in foreclosure regarding short sales. If a homeowner sells via short sale, their credit score will be impacted less than if they go to foreclosure. There is a better opportunity to have the deficiency addressed in the short sale and reduced or eliminated. There is no money received by the seller in a short sale, in most cases. Some programs allow up to $1,000 to the seller for moving expenses if they can meet program requirements. People facing foreclosure in Plainfield, Shorewood, and Joliet should contact Steve Roake to discuss options available to them. Consultations are free. Steve is an experienced short sale agent and has undergone Short Sale and Foreclosure Resource (SFR) training.
Originally posted to http://www.placesinplainfield.com/New_Blog.html
Originally posted to www.roakehomes.com