RealtyStore Real Estate Blog

Default notices in Illinois up 26% from July 2008 and 37% from August 2007

Santa Barbara, September 15, 2008 – RealtyStore (www.realtystore.com), the nation’s leading provider of foreclosure listings, released its monthly Illinois Foreclosure Report.

RealtyStore.com recorded 7,075 notices of default (NODs) statewide for August 2008. This was a 26% increase from those recorded in July 2008 and 37% rise from August 2007. An NOD is filed by the lending institution, when a homeowner falls behind on mortgage payments. NODs provide important information about which homeowners have home loans they cannot afford. Over the past year, Illinois has had the 12th highest foreclosure rate in the nation. For August 2008, 1 out of every 735 households in Illinois received a default notice, which is more than 3 times the national average.

“Mounting inventory in the Chicago real estate market has lenders slashing prices by as much as 60% on foreclosed properties,” said Tim Chin, CEO of RealtyStore. “Such attractive pricing has investors clamoring for bargains.”

Approximately, 70% of foreclosures in Illinois are occurring in Cook County. Cook County, home to the Chicago Bears and the second most populous county in the nation after Los Angeles, had 4,881 defaults in August 2008. This was a 31% increase from the previous month of 3,720 defaults and 42% rise from August of last year. Although foreclosure activity in Chicago may seem moderate when compared to counties in California such as Los Angeles which has twice the number of defaults at 9,985 for August 2008, it is still considered high by historic standards. As such, lenders are eagerly offloading property to Chicago bargain hunters.

Illinois has long been viewed as a microcosm of the United States due to its demographics. Peoria, Illinois, in particular, has the legendary test market status of the average American city. Major TV networks would visit Peoria during Presidential campaigns to ‘take the pulse’ of everyday Americans on candidates and national issues. If the saying “Will it play in Peoria?”, meaning will something appeal to mainstream America, still holds water, perhaps the foreclosure crisis will be tempered by eager investors hunting for deals.

Written by: Eng, Jaymie. Market Analyst for RealtyStore.com
Copyright © 2008, RealtyStore.com

Santa Barbara, CA June 23, 2008 — RealtyStore (www.realtystore.com) recorded nearly 16,500 Notices of Default (NOD’s) in northern Illinois counties for Q1 in 2008. An NOD is filed by the lending institution, when a homeowner falls behind on mortgage payments. NOD’s provide important information about which home owners have home loans they cannot afford.

A sample of 10 northern counties (Champaign, Cook, DeKalb, DuPage, Kane, Kendall, Lake, McHenry, Rock Island, and Winnebago) shows a 45% increase in NOD’s since January 1, 2007. DuPage County, spanning approximately 352,000 homes and housing nearly 0.31% of the U.S. population, saw a 77% increase in NOD’s. Lake County also saw a drastic foreclosure hike of 78%. Between the two counties, Lake County was impacted most drastically, as more than half of its NOD’s occurred during the last six months (October 2007 through March 2008). Cook County, the second most populous county in the United States (over 5.2 million people), fared far better, with a 37% increase from Q1 2007 and an 11% increase in six months.

Two northern counties experienced a decrease in NOD’s during the past six months, though the decrease was minor. Champaign County saw a 4% drop in foreclosure filings. The other, small County of DeKalb has few NOD’s compared to other northern counties, so a 5% decrease in foreclosure in that area can be a difference of one home owner clearing the default. At a glance from Q1 2007 to Q1 2008, both counties continue to experience a rise in pre-foreclosure property.

Overall, northern Illinois has seen its NOD rate almost double in the last 15 months. “As the U.S. economy continues to deteriorate, the latest wave of ARM’s (adjustable rate mortgages) combined with rising unemployment, inflated oil prices, and the falling value of the U.S. Dollar, it is plausible that the foreclosure problem will continue to get worse,” stated Tim Chin, RealtyStore CEO. “If you are thinking about buying foreclosure property, I always recommend working with an experienced real estate professional for advice on whether to buy now or wait on the sidelines a little longer.”

About RealtyStore.com: Founded in 2005, RealtyStore.com is the fastest growing, most trusted provider of foreclosure listings and information in the nation with over 1 million pre-foreclosure, foreclosure auction, bank-owned, and tax sale property listings. Collected from hundreds of public and private sources, RealtyStore’s proprietary database includes extensive property characteristics (including pictures and maps), default and tax information, comparable home values, and neighborhood demographics information. For more information, visit http://www.realtystore.com