Foreclosures in Illinois, U.S. Increased in May; Chicago Bankruptcy Offers Relief
For every step the housing market takes forward, it seems to take two steps back.
Despite previous signs of recovery, foreclosure activity jumped 9 percent in May, according to recent data from RealtyTrac.
That means that 1 in every 639 homes in the U.S. received a foreclosure filing last month. In Illinois, roughly 1 in every 325 housing units went into foreclosure.
For the most part, the homes entering the foreclosure process would have been repossessed sooner had lenders not been tied up in the robo-signing scandal, in which the nation's largest banks were accused of sloppily preparing or falsifying mortgage documents.
Now that a settlement has been reached - and lenders have reevaluated their processes - banks are eager to take care of delinquent properties.
However, the downward effect on prices may not be as pronounced as in previous years because many foreclosure starts will end up as short sales or auction sales, not bank repossessions, say RealtyTrac experts.
That's good news for underwater homeowners who have a handle on mortgage payments. But for the many Americans still struggling to cover costs, the rise in foreclosures is understandably unsettling.
Ultimately, it's personal finances - not the state of the housing market - that leads to foreclosure. With credit card debt, home equity loans, and medical bills to worry about, mortgage payments can wind up on the back shelf. However, missed payments will catch up with you eventually.
For many families, Chapter 13 bankruptcy offers a way to rearrange finances so that it's possible to make up missed payments and stay in your home.
In addition to being better able to pay the mortgage, filing for bankruptcy in Chicago relieves the pressure of unsecured debts.
The housing market may still be spiraling downward, but bankruptcy can offer the freedom your family needs to get back on your financial feet.
To discuss your debt or mortgage with an experienced Chicago bankruptcy attorney, call the DebtStoppers Bankruptcy Law Firm at 800-440-7235. Contact us today for a complimentary one-on-one personal debt analysis.
More Blog Entries:
Foreclosure Activity Jumps in Troubling Sign for Housing Recovery, by Allison Lin, MSNBC.com