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Bank and Tax Foreclosures in Chicago Might Be Easing Down

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By : John Cutts    99 or more times read
The number of bank and tax foreclosures was at record high last year in Chicago, Illinois. Despite the massive amount of distressed properties recorded in the metro area last year, some realtors are optimistic that the housing market crisis is starting to wind down in the region. They cited the decline of foreclosure numbers during the last quarter of last year as a telling sign.

According to some housing industry analysts, the fact that Chicago foreclosure homes have declined in the last months of 2010 might mean that the city has already passed by the worst stage of the industry crisis. They further argued that, although repossessed property totals jumped by 20% for the full 2010 period compared with 2009, foreclosure activities declined to their lowest levels during the last two months of 2010.

Repossessed and foreclosure homes in Illinois increased last year, with Chicago posting some of the highest increases in the whole region. For the full 2010 period, lender repossessed properties totaled a combined 45,000 in areas like Chicago and the region bordering Wisconsin and Indiana. In terms of housing prices, sellers were faced with the options of holding on to their properties while values continue to plummet or selling them for a price that is at least 20% cheaper than normal market prices.

According to analysts, although bank and tax foreclosures declined considerably during November and December of 2010, the full year total still ended on a high. They stated that the decline at the latter part of last year helped, but they also admitted that the number of distressed properties will have to decline even further before the market can achieve a sustained recovery.

They also added that bargain foreclosure homes are depressing the prices of homes in the metro area. Most industry analysts are expecting much of the same for the housing market this year. However, they stated that this could be good since it will signal a bottoming out for the Chicago market.

Analysts also claimed that noticeable declines in bank and tax foreclosures will not be seen in Chicago until 2012. They also stated that the metro area will have to ride out the expected 2011 foreclosure peak first before it can enjoy the observable benefits that are likely to start in 2012.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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