While Foreclosure Rise in January, Chicago Area Sees a Slowdown

While nationally foreclosures are clearly still on the rise, January 2008 saw a drop in the number of homes foreclosures coming onto the market in the city of Chicago and its metropolitan suburbs.

It’s no secret that many are predicting 2008 to be the worse year yet on the books for foreclosures, and for many states, January seemed to solidify those concerns. States already accustomed to high levels of foreclosure like Florida, California and Tennessee all saw dramatic increases in the first month of the new year.

Nationally, January 2008 saw an increase of nearly 60% when compared to the figures for the number of homes served with a notice of default during January of 2007. The rate of foreclosure was roughly 1 in every 55 homes during the month as well. These signs point to the fact that not only are more homes going into default, but more of them are ending up becoming controlled by the lender or sold off at sales.

However, while the state of Illinois held onto 17th place among states with the highest foreclosure rates, the Chicago area managed to record a 3% drop in the number of home foreclosures for the month of January. Interestingly, Chicago has in past years accounted for a great deal of the Illinois home foreclosures market, but in the past month, the state on the whole has experienced a slight drop in foreclosures as well.

This could be the sign of new initiatives undertaken by lenders and the city to provide services to those in default having a positive effect, although the story will play itself out more thoroughly over the rest of the year. However, this could be a very positive sign for investors. The more foreclosure properties and other real e state bought up in Chicago, the sooner property values may also go up. Keep an eye out for deals in desirable areas of the city, as they could have the potential to pay off big in the not too distant future.

Related Posts:

• Chicago Holds 2nd Highest Metropolitan Foreclosure Rate in Nation
• Chicago Put Illinois High on Lists of Foreclosures by State
• Pre Foreclosed Homes in Chicago Rose to Over 70,000 in 2009
• Ohio Foreclosure Rates fall in February, but Still High Among Other States
• Foreclosures Decline By 25 Percent in January