Illinois foreclosures still among nation's highest

Foreclosures in Illinois during May put the state at the dubious position of No. 8 nationwide after it posted a 38 percent increase compared to a year ago, according to a report released today by RealtyTrac Inc., an Irvine, Calif.-based research firm.

But that comparison could be artificially influenced, RealtyTrac spokesman Daren Blomquist said.

"A year ago, Illinois just started a new law that extended the foreclosure process, and we have seen more volatility in the numbers," Blomquist said.

Illinois had a total of 15,061 foreclosure filings during May, or 1 in every 350 housing units. While the year-over-year numbers showed a dramatic increase, Illinois actually showed a 20 percent decrease from the previous month, the report showed.

Nationwide there were about 323,000 foreclosure filings, up less than a half percent, compared to a year ago, and a decrease of about 3 percent from the previous month. The total filings include default notices, scheduled auctions and bank repossessions, the report said.

Illinois is following many other states by showing a huge increase compared to a year ago, but decreases from the previous month. The state also is part of another nationwide trend that showed more bank-owned properties, or the final stage of foreclosure, Blomquist said.

"We're expecting that during the first and second quarter next year that there will be a decrease in foreclosures from the previous year," he said.