Market Conditions: Foreclosure Filings Soared in Chicagoland in 2010 (Crib Chatter)

January 14, 2011

There’s been no slowdown in the foreclosure wave that has swept the entire Chicagoland area in the last few years.

“According to RealtyTrac, the online marketplace for foreclosure properties, 45,555 homes became bank-owned last year in the area between the Wisconsin border and northwest Indiana.

Also during the year, mortgage servicers filed 83,429 initial notices of default, the first step in the foreclosure process.

In the Chicago area last year, foreclosure filings totaled 80,618 in Cook County; 10,646 in DuPage; 9,041 in Kane; 2,612 in Kendall; 11,026 in Lake; 5,385 in McHenry; and 11,027 in Will.”

Chicago-area foreclosures soar 20% in 2010 [Chicago Tribune, Mary Ellen Podmolik, January 13, 2011]

The Tribune is also reporting that the Woodstock Institute has identified 1,896 “red flag” homes in Chicago- those that simply have been abandoned by the mortgage servicer in the middle of the foreclosure.

Aka- the house (and apparently the land) are worthless so even the bank doesn’t want it.

One report listed Chicago as having the second largest servicer abandoned houses in the nation, second only to Detroit.

The city is even demolishing some of these properties.

In 2010, the city demolished 535 homes, the most annually in more than a decade and far more than the 283 residences torn down in 2009, according to Monocchio. The city also doubled, to 891 residences, the number of buildings it secured, sometimes more than once, he said.

Are we reaching a critical period in the housing bust?

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