Are Foreclosures in Illinois on the Rise?

The Covid-19 pandemic has wreaked havoc on the real estate market. As people lost their jobs and companies shut down in the hundreds, many found their properties go into foreclosure as they failed to make timely payments.

The State Of Foreclosures in Illinois

According to a Foreclosure Market Report from ATTOM, foreclosures in Illinois were at an all-time high in 2021. It had the highest foreclosure rate in the country. According to the report, one in every 3,848 housing units had a foreclosure filing per month. Besides Illinois, other states that experienced foreclosures on a large scale included Delaware, Nevada, and New Jersey.

ATTOM discovered these national figures from foreclosure filings entered into its database. The data itself covered 3,000 countries across the nation and over 99 percent of its population. The company evaluated more than 200 metro areas and found that Rockford had the fourth, and Chicago had the third most foreclosures in the state.

The foreclosure process started in August when lenders couldn’t wait anymore. They foreclosed more than 8,000 properties across the country during that time. This was a 27 percent increase from the month before and an almost 50 percent increase from 2020.

A Light at the End of the Tunnel

Even though foreclosures were high in September, ATTOM Executive Vice President Rick Sharga believes they are far from historically normal figures. For example, foreclosure rates were almost 70 percent lower than pre-pandemic numbers, and the total number of foreclosure activities was just 10 percent less than that.

However, even though numbers seem to be normalizing, many borrowers are leaving forbearance programs. Only time will tell whether Illinois foreclosures will follow the same trajectory or slow down and return to normal levels.

The Five Phases of an Illinois Foreclosure

The foreclosure process can differ by state, but the common phases it follows are the same nationwide:

  1. A borrower defaults on a loan.
  2. The borrower receives a notice of default from the lender.
  3. The county office records a notice of trustee’s sale.
  4. The property is sold at a public auction. The lender becomes the property owner if it doesn’t sell.

Contact the Lawyers at Covert Marrero Covert LLP for Foreclosure Issues

If you received a notice for foreclosure on your property, know that it is not the end of the world. You may think you need to face the issue alone, but you don’t have to if you have sound legal representation. Get in touch with the dedicated Illinois foreclosure defense lawyers at Covert Marrero Covert LLP for legal representation. We can help you find the solutions you need.

The faster you act after receiving the notice, the better. We can help you develop a payment schedule, modify your mortgage agreement or even file for bankruptcy to stop the foreclosure. Just book a consultation with us at our Warrenville, Naperville, or Schaumburg offices.

Our attorneys are dedicated to aiding people who think they are cornered and have no way out of their dilemma. We have years of experience helping people like you who were in worse circumstances.

How Long Does a Foreclosure Stay on Your Credit Report?

A foreclosure on your assets can be the absolute worst thing that can happen to your credit report. However, if you default on your mortgage one too many times, you will have no choice in the matter. What is devastating is a foreclosure can remain on a credit report for seven (7) years from the date of the first missed payment. It can seriously bring down your credit score as well, which can compromise your ability to get a loan in the future. Typically, a default notice arrives in 60 or 90 days when you fall behind on your mortgage payments. An Illinois foreclosure attorney will tell you the process initiates when the complaint to foreclose is filed by the lender.

How a Foreclosure Affects Credit

A foreclosure can knock your score by as much as 400 points, but there isn’t a consensus on the exact amount that is deducted. Each crediting agency has its own scoring algorithm, which it keeps secret. Even if your agency has notified you of your score, it may not be the score the three main credit agencies maintain. In other words, even if your history is the same on all three, your score may not be the same.

That’s because each company has its own rules and regulation for every piece of information that is present on a credit report. One may focus on open collections while another may focus more on missed credit payments.

Whichever company or lender you go with, if you face foreclosure, bouncing back from it should be your priority. It is not the end of the world, but it can be a nightmarish experience nonetheless. The first thing you need to do is to see if your reports had any mistakes in them. If you spot several, you can file a dispute and have it corrected. By doing so, you can ensure a loan application doesn’t get rejected later and help you get your life back on track.

Hire an Illinois Foreclosure Attorney

Receiving a foreclosure notice can be one of the most devastating events anyone can go through. This is where our foreclosure attorneys can prove invaluable. At Covert Marrero Covert, LLP, we provide moral and legal support to clients who are facing this issue and help them find real solutions. Get a ‘foreclosure attorney near me’ in Naperville, Schaumburg, and Warrenville, IL today by getting in touch with us for a consultation.