More Properties Revving Up Chicago Foreclosure Investing- By: John Cutts
The surge in foreclosure activity means more opportunities in Chicago foreclosure investing. In the first quarter this year, a total of 9,302 residential units in the Chicago metro area went through public auctions, based on figures released by the Woodstock Institute.
Out of these more than 9,300 units, 95 percent were bought back by banks and posted in their foreclosure home listings. In the city of Chicago, nearly 3,500 units were posted for public auctions and 95 percent also became real estate owned.
Analysts said that the number of properties posted for auctions in the Chicago area surged by a whopping 56 percent and in the city of Chicago by an overwhelming 59 percent from figures a year earlier because of moratoriums and other foreclosure prevention efforts that blocked lenders from pursuing foreclosures last year.
Now that the moratoriums have expired and that huge numbers of distressed applicants were disqualified for loan modification schemes, lenders pursued foreclosure actions that they started last year.
Although distressing for homeowners, the surge in repossessed housing units favor Chicago foreclosure investing. In Cook County, where Chicago is situated, the number of actual foreclosures in the first quarter shot up to 6,514 units, a jump of 61.3 percent. The city of Chicago accounted for almost 54 percent of completed foreclosures in the county during the quarter.
Local advocates also said that there are more foreclosure properties than the numbers recorded. In Schaumburg, there are about 300 vacant homes, including over 100 units foreclosed houses for sale. But analysts contend that there are more units not recorded.
In Jefferson Park, 24 homes were repossessed in the first quarter, in addition to the more than 30 foreclosed homes that were already for sale.
The pace of posting of distressed residential units for foreclosure auctions in Illinois slowed down in the first quarter by almost 5 percent from the previous period, but the pace still marked an 18-percent jump from foreclosure postings in the first quarter of 2009.
Additionally, the 45,780 foreclosure postings during the quarter, including nearly 15,000 bank owned units, put Illinois ninth among the 50 states in foreclosure rate.
Analysts at Woodstock said that more lenders will release their bank owned homes to the market after figuring they will spend more maintaining foreclosed properties and paying for various charges, such as association fees and taxes. This decision will mean more buying opportunities for people focused on Chicago foreclosure investing.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.