Home and Apartment Foreclosures Surged in Illinois in July

by on cities

The number of residents in Illinois facing possible home and apartment foreclosures during the month of July 2010 has increased by 33% compared with the previous month's figures. According to home industry statistics from the state, one household out of 270 was in some form of foreclosure or another in July.

The rise in foreclosure filings happened in almost all parts of the state, with the market for Rockford foreclosed homes being just one sector that recorded higher numbers. The considerable increase put the state in eighth place among areas with the highest rates of foreclosures for the month in focus.

According to some real estate market analysts, the sudden surge in the number of foreclosed homes in Illinois and in the number of filings in July was not unexpected. They stated that this sudden upswing in foreclosure rate has already happened six months ago, 12 months ago and one and a half years ago.

They explained that for every half-year period, banks look at the list of home foreclosures and decide that they have given enough time to delinquent borrowers and the seventh month is the time to take action. Experts have added that the state will continue to have high rates of foreclosures for the rest of the year.

However, some market observers believe that apartment foreclosures and other residential foreclosures will soon reach their peak as loan defaults have already reached their highest points. They further added that the national foreclosure rate will soon level off, although the same thing will happen more slowly in some areas, including Illinois.

Real estate experts have also stated that the current condition of the market, with foreclosure rates being high, presents an ideal situation for buyers, although not so good for home sellers. They claim that most buyers will likely find great purchase deals, particularly with the rate for 30-year fixed loan mortgages falling in the past week or so.

Analysts are advising buyers to take advantage of the current 30-year rate pegged at 4.44%, a level that is the lowest ever recorded for almost three decades. This means that buyers can purchase foreclosed dwellings or apartment foreclosures with a 15-year loan that has an average rate of 3.92%.