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Surge in Elgin Bank Owned Homes Attributed to Two Factors

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By : Allana Castro    99 or more times read
The surge in Elgin bank owned homes in April was attributed largely to two major factors: unemployment and negative equity.

Local analysts said that when the two factors are present in a mortgaged home, the home is most likely to default and get taken back by the bank. They have observed that the number of homeowners who were notified of default and then notified of foreclosure sale and repossession within the first quarter this year increased.

This shows the speed of foreclosure this year compared to last year, when Elgin seemed to be untouched by real estate owned foreclosures. In April this year, 348 homes got hit with filings, the second highest in Kane County. In the first four months, Elgin has already posted over 1,000 filings, nearly equal to the total of filings posted from January 2007 to September 2009.

City officials said that city revenues dropped partly because of the effects of Elgin bank owned homes. They explained that apart from lowering property values, vacant homes also mean reduced number of households working and spending money in the city.

Similarly, bank owned properties in Illinois surged in number in April to a total of 4,754 units, up by 7.5 percent from 4,424 in March. While foreclosures slowed down in March by almost 18 percent, foreclosure filings stepped up in April by nearly 33 percent over the month and by 38.3 percent over a 12-month period.

There were 18,870 Illinois homes hit with filings in April, up from 14,199 units in March. In the first four months of the year, a total of 64,650 homes in Illinois entered foreclosure.

With its increased foreclosure activity, the state ranking of Illinois moved up from 10th in March to 8th in April.

However, despite the surge in Elgin bank owned homes, city officials are confident that Elgin will recover faster than surrounding areas, as the city has always been among the stronger economies in the Chicago area.
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