15 March 2010
Foreclosures in Illinois increased 22% in February, 2010. The high foreclosure rate can be attributed to the high unemployment rate and declining home prices. With the declining market many people are finding themselves underwater in their homes. Meaning . . . they owe more on their home than their home is worth. Illinois unemployment report is 11.3% for the month of January, up from 11% from December 2009. With such a high foreclosure rate it is no surprise that foreclosures are on the rise as well. In order for properties is see appreciation in the market place, foreclosures and short sales need to be absorbed into the market first. Only then will the state and the country see appreciation in the real estate market.
Lucky for those that live in Illinois, the state had the lovely distinction of having 17,312 properties in foreclosure, which is the fourth-highest state nationwide. California ranked number one
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March 15, 2010 at 7:13 pm
The foreclosure rate has nothing to do with declining home prices or being “underwater.” It has everything to do with the homeowner’s ability to pay the mortgage. So declining net income coupled with overinflated home prices to begin with and of course bad banking practices of lending folks money they normally wouldn’t qualify for leads to high foreclosure rates. Seek the truth, it will set you free, and it will also help you understand the economy as it is, not as the government tells you it is.
March 16, 2010 at 5:05 pm
“The foreclosure rate has nothing to do with declining home prices or being ?underwater.?”
Ummm . . . not true. Loss ratios for mortgages vary by current value of the property; when values decline, foreclosure rates increase. Current vintages are at all-time highs for foreclosure, and current value is the best single explanatory variable.
You might want to let a bit of empirical data trump that ideology there, Dave.