Illinois Takes Top Spot in Number of Foreclosures in Q3 2024

 Posted on October 28, 2024 in Foreclosure

While the nationwide foreclosure rates are down for the third quarter of 2024, they are up in Illinois. In fact, Illinois had the highest foreclosure rates for the third quarter of 2024, with one in every 904 homes having a foreclosure filing. Florida, Delaware, Nevada, and Indiana were the other four states among the top five states with the highest foreclosure rates.

Despite these high numbers, Illinois foreclosure rates are significantly lower than they were in 2022, when about one in every 385 housing units received a default notice, had an auction scheduled, or was repossessed by the lender. In 2022, these record-high foreclosure rates were attributed to inflation, rising interest and mortgage rates, and the second-highest property taxes in the nation.

It is unclear what is causing the rising foreclosure numbers in the state in 2024, although high property taxes remain a contributing factor.  The good news is that the foreclosure process in Illinois can take longer than in many other states, averaging about 15 months. If you are facing foreclosure, there are things you can do to slow, halt, or avoid the process. Speaking to a knowledgeable North Chicago, IL foreclosure attorney from Newland & Newland, LLP can ensure that you are aware of all your options.

What Are the Primary Causes of Foreclosure?

Across the nation, the main causes of foreclosure include:

• Negative equity is the primary cause of foreclosure. This occurs when home prices in the area decline, causing a homeowner to owe more on his or her mortgage than the value of the home.
• Medical expenses can lead to job loss, making medical debt the second most common cause of foreclosure.  
• Missed payments due to other expenses are another factor in foreclosures. In Illinois, the delinquency period is 120 days.
• Unexpected unemployment can lead to foreclosure among homeowners who do not have a significant amount of money in savings.
• The death of a family member who was the primary breadwinner can lead to foreclosure.
• Extremely high property taxes and homeowner’s insurance rates can result in foreclosure.

How Can I Avoid an Illinois Home Foreclosure?

In many cases, your best option for avoiding the foreclosure of your home could be filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy can help you eliminate some of your other debt and then enter a repayment plan that can last three to five years. As soon as you file for Chapter 13, the foreclosure process stops under the automatic stay.

The court will also order all of your creditors to cease collection efforts. You can then bring your past-due mortgage payments current over a period of time. Other ways to potentially avoid foreclosure include:

• Contact your lender and explain your financial circumstances. Your lender may agree on a payment plan, a modification of your original loan terms, or a temporary forbearance.
• See if you qualify for help from a nonprofit or governmental agency such as the Homeownership Preservation Foundation or NeighborWorks America.
• Consider selling your home and downsizing.
• Ask about a loan assumption that would allow another buyer to take over your mortgage debt.

Contact a Lake County, IL Foreclosure Lawyer

Facing foreclosure of your home can be a devastating experience. For most of us, our home is our haven, and the thought of losing it brings anxiety and stress. Your first step in avoiding foreclosure should be to speak to an experienced Libertyville, IL foreclosure attorney from Newland & Newland, LLP.

We have decades of experience between our attorneys, while our main attorney has served on the board of Directors of the Illinois Real Estate Lawyers Organization and the Real Estate Committee of the Lake County Bar Association. Our attorneys are local to the area and always put their clients and communities first. Call 847-549-0000 to schedule your free initial consultation.