Illinois Foreclosures are Up, But There is Help

The latest U.S. Foreclosure Market Report was released today with an increase, a decrease and a new record.
RealtyTrac, an online marketplace for foreclosure properties, reported that for the third quarter of 2010, foreclosure filings, which includes default notices, scheduled auctions and bank repossessions, increased 4 percent from the previous quarter but decreased 1 percent from the third quarter of 2009.
Foreclosure SignThe report also showed that a record 102,134 bank repossessions were reported in September: That’s the first time it has surpassed the 100,000 mark in a single month.
According to RealtyTrac, Illinois posted the fourth largest foreclosure activity total in the country with 47,802 properties receiving foreclosure filings in the third quarter.
“We expect to see a dip in those bank repossessions — and possibly earlier stages of the foreclosure process — in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks,” said James J. Saccacio, CEO of RealtyTrac.
All 50 states and the District of Columbia have launched an investigation into the mortgage industry and are pushing for a halt on foreclosures.
The state attorneys general are looking into allegations that mortgage employees, dubbed robo-signers, signed thousands of foreclosure filings a month without reading them or verifying their accuracy, which is required by law in most states.
Illinois Attorney General Lisa Madigan said the companies could be in violation of the state’s Consumer Fraud Act. She is pushing for a moratorium on foreclosures in the state until specific loan companies can prove that their filings are accurate.
Madigan has also proposed legislation that would require mortgage lenders to make sure Illinois homeowners know:
*Exactly how much they owe
*Who owns their loan
*The specific terms of the original loan
*Resources they can contact for help
Madigan has also re-introduced legislation drafted by Illinois Senator Dick Durbin that would allow bankruptcy court judges to save homes by reducing principal amounts on mortgages.
If you are an Illinois homeowner in risk of losing your home, there are resources available, including the Illinois Mortgage Lending Guide, which offers advice for homeowners struggling to make their mortgage payments and resources for counseling services.
To get a copy of the guide, visit or call (866) 544-7151 to get the information by mail.