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Distressed Homes for Sale Pile Up in Central Illinois

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By : John Cutts    99 or more times read
The number of distressed homes for sale and empty foreclosed properties has increased in the area of Central Illinois. Small towns are feeling the impact of the housing market crisis as empty houses pile up in previously immune neighborhoods.

Although the number of foreclosures in McLean County and other central region communities are not as high as the number of Chicago foreclosed homes, the area is still feeling the effects of the real estate crisis. In some cases, there are five to six foreclosures in just one single block, resulting in the decline of property values in the rest of the neighborhood. Neighbors have stated that they have never seen this kind of housing problem before in their areas.

Most of the foreclosed homes for sale in Illinois are concentrated in big metro areas like Chicago, but smaller areas are feeling it more since four or five foreclosures can effectively bring property values down in a community that is relatively small, particularly those with less than a thousand residents in one town. In McLean County, housing market data showed that foreclosures have jumped by almost 40% since the start of the housing market crisis five years ago until last year.

Distressed homes for sale in the county totaled 535 last year. Realtors in the area are predicting that more residential properties will be lost to foreclosure in 2011. They stated that a regular town in the Central Illinois area may not feel one or two foreclosures, but once the number gets to five or six, then the whole neighborhood is affected.

The rise in the number of foreclosed homes in the region for the past five years has caused prices of residences to go down. Last year, the average selling price of houses in some McLean towns was around $177,000. Although homes are very affordable in the central region, realtors stated that buyers are not too keen in purchasing properties in the area because of the high prices of gasoline and other products.

They also stated that distressed homes for sale have a huge impact on housing prices, as opposed to short sales. They explained that short sales can save a neighborhood, while a distressed or REO sale can weigh down the value of the rest of a community's properties.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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