Signs that foreclosure epidemic may be slowing in Kane Co.

The year 2009 saw the American dream become a financial horror in record numbers in Kane County. A total of 4,662 new home foreclosure cases were filed, more than any other time in the history of the county. But there could be some signs that a rebound is on its way.

The 4,662 foreclosures represented a 35 percent increase from 2008. The number of annual foreclosures has been on a steady uptick since at least 2005 when the county had 1,174 foreclosures. The county is still seeing 80 to 120 new foreclosure cases every week, but the fourth quarter of 2009 yielded something unexpected.

Scott Berger, in the county's development office, monitors the foreclosure filings for Kane County and said the fourth quarter of the year has always been the worst since foreclosures typically spike during the final months of the year. Not so in 2009.

For the first time since 2005, Berger said the number of foreclosures fell in the fourth quarter of 2009. Third-quarter foreclosures were 1,569 and 1,371 in the fourth quarter. In 2008, third-quarter foreclosures were unavailable, but the fourth quarter yielded 1,031 foreclosures. Berger said even though the number of overall foreclosures in the fourth quarter of 2009 were 33 percent higher, the spike that was present in the fourth quarter in 2008 didn't happen in 2009. That's just enough reason for Berger to be cautiously optimistic that 2010 will continue to see more local homeowners remain local homeowners.

Berger said the best way tool for that to happen is for homeowners to receive foreclosure counseling if they find themselves in trouble. As many as 30 percent of homeowners who undergo counseling find a way to keep their homes, Berger said.

"Unfortunately, not enough people call for counseling," Berger said. "And the reality is that for some people who are really underwater, their best option is a short sale if their lender will approve it."

The one advantage to the skyrocketing number of foreclosure cases is a backlog in the court system.

Berger said it can take 18 to 24 months to finalize a foreclosure.

That leaves plenty of time for counseling programs to provide assistance. Foreclosure prevention counseling is available locally through the Consumer Credit Counseling Services of Elgin, the Consumer Credit Counseling Services of Aurora, the Joseph Corp. in Aurora or the Neighborhood Housing Services of the Fox Valley.