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Feb
07
Illinois Foreclosure Rates Third Highest in the United States

Illinois Foreclosure Rates Third Highest in the United States

In September, Illinois ranked third highest in the nation for foreclosures. This was actually an improvement from August, when Illinois ranked number one. While the nation’s foreclosure rate has been decreasing, the number of foreclosures in Illinois continues to increase year after year. In September, 14,087 Illinois homeowners were struggling through the home foreclosure process.

Reasons for the increase in foreclosures

Experts opine that Illinois’ foreclosure crisis is attributable to a variety of factors, including:

Unemployment: the current rate in Illinois is higher than the national average at 8.8 percent for September.
Judicial foreclosure state: Illinois’ foreclosure process is slow and requires the court to oversee the process. It takes an average of 647 days to complete a foreclosure process. This is significantly higher than the national average of 378 days.
In addition, real estate prices have not rebounded as much as in other states. Homeowners are choosing to let their houses go to foreclosure because they are worth less than the amount owed.

Preventing foreclosure

Every year, thousands of Illinois families lose their home to foreclosure. Many of those homeowners could have prevented the foreclosure. Early prevention can keep you on track so that you can avoid defaulting on your mortgage payments altogether. Some tips to remember, include:

Seek housing counseling early. Free housing counseling is available to struggling families.
Know your mortgage rights. Read your mortgage documents and know what will happen if you default.
Use a household budget. Money management can ensure that there is money to pay the mortgage.
Another option available to prevent foreclosure is bankruptcy. All chapters of bankruptcy stop foreclosure, at least temporarily, through the power of the automatic stay. The automatic stay prohibits creditors from taking collection actions against you. This includes foreclosing on your home or any other liens.

If you want to keep your home, Chapter 13 bankruptcy is the best option. In Chapter 13, your debts, including your mortgage, are reorganized into a three to five year repayment plan. During this time, your payments will be lowered so you can afford to make them.

An alternative to bankruptcy is a loan modification. Your mortgage company may agree to refinance, reduce your interest rates or extend your mortgage term to make your monthly payments more afford able.

Chapter 13 bankruptcy may not be right in every situation. To learn more about your options, contact an experienced Illinois foreclosure defense attorney.


Convenient Locations

In order to provide convenience for clients throughout Chicago and Northern Illinois, we have offices in the following locations: 

Chicago • Schaumburg  • Oakbrook • St. Charles • Naperville • And More

Locations

We have office locations throughout the Chicago Area:

Chicago (Downtown)

Schaumburg

Oak Brook

Naperville


All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

Locations

We have office locations throughout the Chicago Area:

Chicago (Downtown)

Schaumburg

Oak Brook

Naperville


All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

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