The Illinois housing market appears to be at the rear of the pack when it comes to recovery, despite several studies supporting progress. According to the Mortgage Bankers Association, at the end of September 2012, 8% of Illinois’ mortgages are delinquent, making us one of the slowest markets in recovery in the nation.
They also report that 1.29% of those mortgages are in pre-foreclosure and 6.83% are already in foreclosure. In the entire nation, only Florida and New Jersey have higher numbers. To put this into perspective, while non-judicial states’ foreclosure rate averages 2.4%, states like Illinois, which is a judicial state, averaged 6.6%, and this was a decrease from a previously higher level of default.
The association’s VP, Mike Fratantoni says, “Illinois was one of the states that we highlighted as a slow-moving judicial process.” He still believes overall the outlook is good due to the significant reduction of the shadow market.
On the contrary, according to an article in the Chicago Tribune, 60% of all delinquent mortgages originated from 2005 – 2007. Realty Trac, reports that in the 6 county Chicagoland area, Cook, DuPage, Will, Kane, Lake and Kendall, there were 12,212 properties that were issued foreclosure notices just in October 2012. This is a 3.6% increase from September and 18.6% from October 2011. Of those 12,212 homes 3,117 of them were repossessed.
Zillow, another real estate site, claims that negative equity is the bigger issue here in Chicago than anywhere else. Although the amount of upside-down mortgages dropped from 39.2% in the second quarter 2012, to 36.6% in the third quarter 2012, out of 639,495 homes the total negative equity in the Chicago housing market is an overwhelming $51.1 billion, according to Zillow.
Comments (1)Subscribe to CommentsComment