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Finding Distressed Homes Will Be Easier in 2011 for Illinois Buyers

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By : John Cutts    99 or more times read
The number of investors who are into finding distressed homes and purchasing foreclosed properties is expected to rise in Illinois this year. This is because housing industry analysts are predicting a further increase in the number of REOs and foreclosed dwellings in the state in 2011.

Chicago foreclosure listings and distressed property numbers in most local areas of the state are predicted to grow in the coming months. Analysts have stated that the rest of the U.S. will also experience a rise in the number of distressed properties as they expect repossessed homes to reach over one million in the whole country before the year ends.

The number of foreclosure property for sale in Illinois and distressed homes in the rest of the U.S. is also projected to rise because of recent estimates that the number of REOs currently held by banks all around the country totals around one million. However, analysts have stated that only 30% of these one million REOs have been introduced into the market, with the remaining 70% still in the pipeline and half of it at least will likely come into the market this year.

Real estate experts also stated that finding distressed homes in previously hard hit areas will be common, with markets that have biggest supplies of foreclosures likely to remain frontrunners in terms of number of distressed houses for 2011. The huge amount of REOs and foreclosures stuck in the pipeline was largely attributed by experts to a slowdown in the processing of foreclosures during the last quarter of last year, particularly in relation to Freddie Mac and Fannie Mae.

The expected surge in foreclosures for sale will likely mean further depression in housing unit prices, analysts have stated. However, majority of them believe that Illinois prices will not decline by a huge percentage since the state's prices have been able to weather huge amounts of foreclosures in the past.

They further added that although the rise in the number of foreclosures have made finding distressed homes in Illinois easier, the prices of houses in the state did not experience drastic fluctuations during the market boom and the subsequent bust, which will likely mean that prices will be able to hold steady in 2011.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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