For Immediate Release
Contact: Geoff Smith, Vice President (312) 427-8070
Woodstock Institute Releases Foreclosure Report: Thirty-Five Percent of Mortgages in
Foreclosure in 2007 Were Originated Just One Year Earlier, Concentrated
Foreclosures Impact Borrowers and
Foreclosures spiked in the last quarter of 2007 in nearly
every community in the
The report shows that foreclosures filings continue to skyrocket across the region and are a serious problem in suburban areas that have not traditionally been associated with high foreclosure levels.
It is likely that foreclosures will continue to rise in 2008 as regional property values stagnate or decline; refinance options remain limited for homeowners with adjustable rate mortgages; and the monthly mortgage payments on many loans reset to higher levels. However, as foreclosures mount, many suburban communities may also be unable to manage the foreclosure glut.
“Many municipalities are being hit from both sides,” says Geoff Smith, Vice President of Woodstock Institute. “They see increased costs associated with dealing with foreclosed properties, but also see declining revenues from lost property, sales, and transfer tax revenues.”
The report’s findings show:
The number of properties with foreclosure filings has grown tremendously since 2005. The number of properties with foreclosure filings grew to 38,215 in 2007 which was an increase of nearly 32 percent from a previous high of 28,997 in 2006. This is on the heels of a 36 percent increase between 2005 and 2006. Between 2005 and 2007, the number of properties with foreclosure filings in the region increased by nearly 80 percent.
Mortgages that went into foreclosure in 2007 were predominantly from loans originated since 2005. Over 35 percent of 2007 foreclosure filings were of mortgages originated in 2006. Nearly 28 percent of foreclosure filings were of mortgages originated in 2005. Perhaps most surprisingly, roughly 4.5 percent of 2007 foreclosed mortgages originated in 2007.
communities have seen the largest recent growth in foreclosure filings.
The fourth quarter of 2007 saw a tremendous spike in foreclosure filings. The number of properties with foreclosure filings jumped in the fourth quarter of 2007. There were increases of over 70 percent from the third quarter to the fourth quarter of 2007 and of over 52 percent from the fourth quarter of 2006 to the fourth quarter of 2007.
Every region of the