Chicago Holds 2nd Highest Metropolitan Foreclosure Rate in Nation

Chicago claimed the spot this February as the metropolitan area with the second highest rate of foreclosure in the country. The only city with a higher rate of foreclosures is Los Angeles.

The city has taken many steps to try to curb its foreclosure rate, but with the increasing number of sub prime and adjustable rate mortgages scheduled to reset at higher rates in 2008, this event isn’t surprising. The current foreclosure rate of about 1 in every 475 homes is 20% higher than it was a year earlier in February of 2007, and echoes a12% rise in the foreclosure rate for the state of Illinois experienced over the same period.

The areas most affected by the recent surge are the south and west sides of the city, where sub prime mortgages are prevalent. The Chicago area is made up of six counties, and Will County reported the highest rate within the city, at about 1 in every 300 homes.

The trend in Chicago is expected to continue further into 2008, and many investors are on the lookout for low priced home purchases through foreclosure sales as a result. Chicago is a huge, popular city, and buying a foreclosure here can be a great way to get involved in the market for a very low price.

Related Posts:

• Cleveland Sees Half of it Sub Prime Mortgages go to Foreclosure
• Denton County Sees 40% Spike in Foreclosures
• While Foreclosure Rise in January, Chicago Area Sees a Slowdown
• More Foreclosed Homes Expected in California Suburbs
• North Texas Foreclosure Rate Slows Slightly