Process delays prompt fall in completed foreclosures (Crains Real Estate Daily)

By Mary Morrison

September 22, 2011

 

The number of Chicago-area foreclosure completions dropped significantly in the first half of this year, but only because of delays in the process.

 

The six-county Chicago region saw 8,515 foreclosure cases completed at auction in the first half of 2011, a 50.9% decline from the first half of 2010, according to data released Thursday by the Chicago-based Woodstock Institute, a nonprofit research and policy organization.

 

The drop likely is due to longer processing times, with the median length of the foreclosure process in the second quarter at 359 days, 25.5% longer than cases completed in the second quarter of 2010 and 50.8% longer than cases completed in the same period in 2008, according to Woodstock.

 

“A prolonged foreclosure process cuts both ways. It means that vacant homes in foreclosure have more time to become blighted and destabilize neighborhoods,” Sarah Duda, senior research and project associate at Woodstock Institute, said in a statement. “If a family is still in the home, however, the longer process could give them more time to negotiate a solution with their loan servicer.”

 

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