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More Collar Counties Cheap Houses Available as Foreclosures Rise

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By : Clark Raitz    99 or more times read
For home buyers and real estate investors looking for cheap houses, the large inventory of Chicago foreclosures will surely entice them to invest. Considering the continued rise in foreclosures rate in the Collar counties for the last six year, the large inventory of repo homes should not come as a surprise.

Based on data from Woodstock Institute, the said Chicago area recorded a significant year-over-year increase. Foreclosures in Illinois have become one of the major issues in the housing sector as lenders are still not inclined to approve loan modification applications, forcing many troubled borrowers to simply walk away from their homes. Most of the said borrowers decided to do so after realizing that they owe $200,000 for a real property that is currently worth $100, 000.

The six-county area exhibited a 14 percent increase in foreclosure filings and, by the end of 2011, the story might be the same. There is really no reason for property values to go up, considering the large inventory of foreclosure properties. As more and more homes enter some stage of foreclosure, the more home prices are adversely affected. And with the housing market flooded with cheap houses, property values will not go up.

Unemployment rate is also not expected to decline significantly, which leaves the area in a deadlock situation. The sad thing is there is no clear path which could lead to any semblance of recovery. At present, many homeowners who have lost their jobs due to the sluggish economy are at high risk of foreclosure. Most are simply walking away, while others are still trying to work with their banks and trying a loan modification or a short sale.

Even efforts made by the federal government have yet to make a dent on the local foreclosure crisis. Perhaps, the only silver lining can be seen by home buyers looking to cash in on these cheap houses., your source of foreclosed homes.

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