Foreclosure Rates are Falling

foreclosure rates Maybe it is because April showers bring May flowers? Or maybe not, but Foreclosure rates have finally started to fall.  Rates in the U.S. peaked in January 2010 at 8.07 percent according to the
Equifax Personal Finance Blog and now they have dropped to 6.80 percent. The real question at this point is can we expect them to fall further?
Credit expert Janet Dedrick notes that the housing market is in the midst of a five-year housing correction. By this she means we are only five years into the correction so far.  In her recent Equifax post, “
Credit Trends: When Will Foreclosure Levels Start to Fall?” she discussed how housing prices had skyrocketed in  many markets prior to 2006, so now they have a long way to fall.
Foreclosure starts, however, have remained pretty stable at more than 3 percent over the last year, according to Dedrick. Of course, that’s up from less than half a percent five years ago.
While foreclosure is final, homeowners can choose bankruptcy to stall and take extra time to get current on their mortgages. Dedrick further explains that unpaid mortgages can be written off through foreclosure or bankruptcy.
So here’s a questions for our readers in Chicago: Are you still seeing lots of Chicago real estate foreclosures? Or do you think rates are finally  falling here? Take a look at Dedrick’s full report at the
Equifax Personal Finance Blog, then share you thoughts with us.