The rise in new foreclosure filings in Chicago (http://www NULL.illinois-foreclosure-homes NULL.com/listing/county031/chicago NULL.html) in 2008, as reported by nonprofit group National Training and Information Center, put Illinois (http://www NULL.illinois-foreclosure-homes NULL.com/) high on several lists of the ten U.S. states with the highest foreclosures by state (http://www NULL.foreclosurelistingsnationwide NULL.com/listings NULL.php) in 2008. Total foreclosure filings reached 19,943 in 2008, an increase of a record 87 percent from filings in 2006.
In January 2008, according to RealtyTrac’s foreclosure report, Illinois is still among the U.S. States with the highest foreclosures by state. Illinois had 7,484 default notices, 4322 foreclosure sale (http://www NULL.bankforeclosuressale NULL.com/) notices and total foreclosure filings of 14,447. Included in the total are more than 2,000 units which are real estate owned properties (http://www NULL.findforeclosureproperties NULL.com/), assets that have been foreclosed and repurchased by the banks. The state’s foreclosure rate (http://www NULL.eforeclosuremagazine NULL.com/category/foreclosure-rates) is one foreclosure filing per 363 residential properties. These figures put Illinois fourth in RealtyTrac (http://www NULL.realtytrac NULL.com/)’s ranking of foreclosures by state and sixth in terms of foreclosure rate for the month of January.
One of the major reasons for Illinois’ high ranking in listings of foreclosures (http://www NULL.foreclosurelistingsnationwide NULL.com/) by state in 2008 is a record increase of foreclosure filings in Chicago neighborhoods previously immune to foreclosures (http://www NULL.foreclosuredeals NULL.com/). Almost 20,000 foreclosures were filed in Chicago due to defaults in middle-class and moderate-income communities. Another major reason is the use of exotic but risky loan schemes in mortgages. According to National Training and Information Center, mortgage loans in Chicago failed because 75 percent of them used risky loan schemes such as adjustable-rate loans.
Communities that contributed much to the high ranking of Illinois in terms of foreclosures by state are O’Hare, which increased in filings by 676 percent compared to 2006 filings; Dunning, which had an increase of 377 percent; Albany Park, an increase of 374 percent; Lincoln Square, an increase of 366; Irving Park, an increase of 344 percent; Norwood Park, an increase of 271 percent; Rogers Park, an increase of 268 percent; West Lawn, an increase of 256 percent; and Hyde Park, an increase of 105 percent.
The high ranking of Illinois in listings of foreclosures by state prompted U.S. Senator Dick Durbin, who comes from Illinois, to introduce and campaign for his bankruptcy (http://www NULL.foreclosuredeals NULL.com/bankruptcy NULL.php) legislation that would help borrowers save their homes from foreclosure (http://www NULL.foreclosure-support NULL.com/). Durbin’s bill enables homeowners to have their mortgage loans modified for affordable payments.