The date indicates that the relatively low foreclosure rate of the past few months is unsustainable, and the number of new Chicago foreclosure cases has risen to a more typical level, thanks in part to a recent uptick in the area's housing market.
Chicago Foreclosure Defense Rate Spikes
Data collected last month showed that mortgage lenders filed more than 3,400 new foreclosure cases in the Chicago metropolitan area, which was a 30 percent hike from the same month last year, when local courts saw a relative quiet period after four years of foreclosure chaos.
The overall number of foreclosure filings in Chicago, however, dropped for the eleventh consecutive month. And this continued decline has flummoxed observers taking the pulse of the Chicago housing market.
Some observers, for example, speculate that the decrease was caused by the recent rise in local housing prices, which has helped some borrowers whose homes were previously worth less than their underlying loans. . Of course, the growth in housing prices has been modest at best, so this doesn’t offer a full explanation for the drop in foreclosure cases.
Another potential explanation for the decrease in overall foreclosures is that drop is that many lenders are trying to avoid the lengthy judicial foreclosure process and pursue foreclosure alternatives, like a deed in lieu of foreclosure or the increasingly common short sale.
Chicago Foreclosure Defense Attorneys Can Help
Even though the Chicago housing market continues to remain stuck in neutral, prices will eventually rise. And when this happens, mortgage lenders will likely start filing for foreclosure at a faster rate, as banks look to make more money by foreclosing on more valuable homes.
And some sources believe this trend has already started, as the Chicago metropolitan area experienced a 10 percent rise last month in foreclosure auctions. This suggests that lenders believe foreclosure sales will soon deliver more bang for their buck.
But homeowners aren't powerless in the face of a foreclosure action. With the help of a Chicago foreclosure defense attorney, you may be able to save your home from the hands of aggressive creditors.