"And....they're off!" A familiar call heard of the announcer as a horse racing event commences.
And it seems, this is becoming a familiar call of the foreclosure activity, specifically in Illinois and Chicago. Based on a recent report from RealtyTrac, foreclosure activity rose 29% in May 2012 compared to the April 2012 and is 54% higher than May of 2011.
Illinois had 16,318 foreclosure filings last month. Filings include default notices, auction-sale notices and bank repossessions.
How does this stack up for the individual homeowner in Illinois? The filings represent one in every 325 housing units in this state, which is the fifth highest nationally.
Based on the RealtyTrac report, the indication is that a "bumpy ride" is ahead and there will be period of slowing activity and then there may likely be more periods of foreclosures shooting back up.
Given the potential competing outcomes, it is generally much better for a neighborhood and a community to lose a neighbor to a short sale than to a foreclosure. The 'total cost' is notably less for all constituents.
For those keeping track, Georgia posted the nation's highest foreclosure rate. Other states with rates higher than Illinois are Arizona, Nevada and California.
And of course, those in the state do want to know how good ole Chicago is doing. Foreclosure rates in Chicago worsened to one in every 252 housing units, fourth-highest among the nation's 20 largest metro areas.
This horse race looks to be far from over.
Michael Hobbs, PahRoo Appraisal & Consultancy
Twitter @PahRoo
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