A recent analysis of Chicago foreclosure statistics found that foreclosure
proceedings are taking an unusually long time to complete - almost a year
The Woodstock Institute, a Chicago-based research and policy non-profit
organization, examined foreclosure statistics in recent years for six
counties in the Chicago area. The organization found that, in the first
six months of 2011, there were 8,515 foreclosure auctions. This number
is about half of the number of Chicago
foreclosure auctions in the same time period in 2010, which was 17,331.
In addition, the second quarter of 2011 saw 3,604 properties complete the
foreclosure process, which is 27 percent fewer properties than in the
first quarter of 2011. The second quarter of 2011 also had the fewest
foreclosure auctions since 2007.
Why are Chicago Foreclosures Decreasing?
While these statistics may seem to indicate that the foreclosure crisis
is improving, the reality is that the number of foreclosure completions
is down because foreclosure proceedings are taking longer to complete
than in recent years. In the second quarter of 2011, the average duration
of the foreclosure process was 359 days. That represents a 25.5 percent
increase from the same time in 2010, and the longest duration since 2008,
according to the Woodstock Institute.
Part of the reason why foreclosure proceedings are taking such a long time
is that banks and other loan servicers have slowed their speeds, taking
more time to review documents and properly execute affidavits in wake
of the "robo-signing" scandal that nearly ground the foreclosure
process to halt.
One benefit to homeowners of the long duration of foreclosure proceedings
is that it gives them more time to negotiate possible
loan modifications, investigate banks' legal right to foreclose on their homes and explore
other options that may be available to help them keep their homes, like
filing for bankruptcy. An experienced Chicago consumer lawyer can advise
homeowners on how to best use this time to their advantage.