No end in sight with foreclosures in Illinois
While the national foreclosure rate declined last month, Illinois' home foreclosures spiked during April, placing the state No. 8 in foreclosures nationwide, according to a report released today by RealtyTrac Inc.
And experts say a high number of foreclosures will continue in Illinois at least through next year, as rising unemployment and the tough economy continue to force homeowners' backs to the wall.
"At-risk homeowners also have been working their way through modification programs, and a number of them have been kicked out for various reasons because they weren't eligible," said Phil Ashton, assistant professor of urban planning and policy who studies the mortgage crisis at the University of Illinois at Chicago.
"That essentially forced the issue for many banks since so many were in a holding pattern."
Irvine, Calif..-based RealtyTrac said that Illinois had a total of 18,870 filings on properties during April, or about 38 percent higher compared to April 2009. That means one in every 280 households were going into foreclosure, the RealtyTrac report said.
Nationwide, foreclosure filings - including default notices, auctions and bank repossessions - were reported on more than 333,000 properties during April, a 2 percent decrease from April 2009. That's 1 in every 387 U.S. households, according to the RealtyTrac report.
Nevada, No. 1 on the list, posted the nation's highest state foreclosure rate for the 40th straight month, That means one in every 69 households in Nevada received a foreclosure filing in April, more than five times the national average.
California, Florida, Michigan, Illinois and Nevada together accounted for 52 percent of the national total, the report said.
"Illinois hadn't been hit as hard early on as other states, but it is now," said spokesman Daren Blomquist.
The last time Illinois reported a spike in foreclosures was last November with 108 percent increase, again attributed to rising unemployment as well as the state law that went into effect last year providing a so-called grace period so at-risk homeowners could get a few extra months to work on a solution.
"A lot of people are still in trouble," said Blomquist. "So we see foreclosures continuing to fill the pipeline."