Change in Foreclosure Operations of the Lenders Locally in Illinois and Nationally

Julie Parker

Julie Parker was born in March 19, 1983, in Lancaster – Los Angeles County, California. Her father is an experienced economist and businessman, who motivate her taste for the real estate market. Recently, graduated in Economics and now focus her studies in a PhD. Now she’s a consultant and webwritter of ForeclosureListings.com

Change in foreclosure operations of the lenders locally in Illinois.

There was a sharp drop of foreclosures in the suburbs last May as compared to the same month in 2010 but analysts think it is not yet time to celebrate. In the suburban counties the decrease in foreclosures ranged from 15% to 60%.

Illinois recorded a tumble of 30% during the same month. Across America foreclosure numbers including notices of default, auctions and bank repossession numbered 215,000. The decrease was by 33% according to RealtyTrac, based in Irvine, California.

RealtyTrac (online research company) said that the real estate scenario has been marked by delays in processing. The elephant tramping in the room is the controversy over robo signings. The banks have been charged for engaging in en masse signing of foreclosure papers without proper verification. This has led to many houses being wrongfully foreclosed upon. The controversy kicked off investigations at both state and federal levels.

To further complicate matters is the grim unemployment scenario and negative equity on the houses. It has been battering the house owners – even those not in foreclosure, commented assistant professor Phil Ashton (urban planning and policy) of University of Illinois, Chicago. He said, “We cannot think of what else could be driving down all of a sudden. It’s not like homeowners feel safe and sound now”.

The robo-signing furor has definitely brought about a change in foreclosure operations of the lenders locally in Illinois and nationally. Since the last eight months foreclosure numbers have been dropping in Illinois. The downward trend began with the exposure of the robo-signing scandal said Daren Blomquist speaking on behalf of RealtyTrac. He said, “This still is not indicative of the market realities in Chicago or in Illinois”.

RealtyTrac researches have noted that the focus has shifted to proper filing of documents and this is causing lenders taking a longer time to foreclose. It is apprehended that after the completion of the investigations and the results being placed in order, there will be sharp increase in foreclosures in Illinois and across America.

A modest increase has already been noticed in May when compared to the previous month. The tally month-over month at the local and state levels is showing that the tide is changing. Blomquist commented, “We expect a bump up in foreclosure, but not a huge surge like a year ago”.