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Bank Foreclosure List Predicted to Rise in Illinois

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By : John Cutts    99 or more times read
Another wave of distressed properties will flood the bank foreclosure list in McHenry County, Illinois. This is what industry experts are saying as the foreclosure crisis continues to spread across the country.

However, this time, the increase would be driven by the ongoing recession and not by bad loans. They are expecting the onslaught of foreclosures before the end of this year or early next year. They said that the first wave of foreclosures was caused by bad lending. But this time, the foreclosure problem is tied to the economic downturn and unemployment. Exacerbating the foreclosure problem is the drastic decline in home values and prices.

Data from the McHenry County Circuit Clerk showed that the number of properties on bank foreclosure list in the first quarter of this year was higher compared with the same quarter the previous year. Last April and May, the foreclosure activity declined dramatically but jump up the next three months.

According to industry experts, the decline in foreclosure rate in April and May was due to the voluntary moratorium program on foreclosures. The government program proved effective only in the short term, according to experts. They added that the program only delayed what was inevitable.

Furthermore, some homeowners who took advantage of loan modification programs the previous year are now at risk of foreclosure due to economic hardship. In the first eight months, the total number of foreclosure homes in the county reached 1,602, higher than the 1,436 posted in the same period last year.

And as the foreclosure rate increases, home prices, values and sales fall. According to market data, the average property price on the county declined by 16 percent to $206,741 in the second quarter of this year from $245,671 for the same period last year.

Industry experts said that all activities in the housing market are pushing down home prices, with no relief expected to happen soon.

For the same quarter in 2007, there were 1,175 properties sold in the county. Fast forward to the same quarter this year, home sales dropped to only 706. Experts said that foreclosure properties accounted for a big share in the housing markets in many communities across the county.

And they predicted more properties will be placed on bank foreclosure list as banks will start to unload properties from their inventory.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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