Real estate market analysts are worried about increases in home foreclosure rates in some areas of Illinois in 2010. According to them, although it is highly unlikely that foreclosures in the area will reach the same level as other troubled states like California, Florida and Nevada, the rise from previous year's numbers is enough to make some industry observers uneasy.
Although the number of Chicago foreclosure homes for sale and distressed property totals in other areas of the state had never reached uncontrollable levels, the surge this year has been noticeable, with some analysts fearing that this could be a start of some bigger housing market trouble.
One sign that the number of Illinois foreclosure homes for sale has been going up can be seen in the county of Champaign. Sheriff's sales featuring foreclosed properties in the area were regularly held at the courthouse lobby. Lately, such auctions are held at Lincoln Room, a more spacious venue that can accommodate increasing number of auction attendees interested in witnessing higher than usual property auction sales.
Local real estate lawyers have also noticed the increase in home foreclosure rates in several areas of the state and have stated that, although predatory lending can be considered over, its impact on the housing market seems to be just starting in some areas.
Market analysts have added that the surge also creates a more unstable economy, with areas like Champaign and Urbana more likely to feel the pressure of a business closure, even by a single company. However, other market observers believe that the increase in the number of homes falling under a foreclosure property listing has more to do with the recession and job losses than on predatory lending.
In Champaign, 355 chancery cases, or those involving homeowners who are at least 90 days behind in their mortgage loan payments, have been filed in the current year so far. The figure is on track to beat previous year's whole-year total of 494. In Vermilion County, chancery cases filed are at 272 for 2010, while previous year's total was at 341.
Home foreclosure rates in areas like Champaign-Urbana was pegged at 1.38% in June 2010, representing a rise of 0.93% when compared with June 2009. However, most analysts find optimism in the fact that it is lower than the national average of 3.06%.
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