IL Made It on Yet Another List - Of Top Foreclosure States

Posted by Judy Orr on Tuesday, January 14th, 2014 at 10:52pm.

My last post was about IL being tops on Realtor.com's home search in 2013.  The specific search was for Chicago's Old Town real estate and you can click the link to read all about it. IL once again is featured in another list, 15 states where deeply underwater foreclosures still remain.

The Washington Post states the following:

"The data measure underwater status by comparing the value of a home loan to the value of the home itself. A foreclosure was defined as “deeply underwater” when the homeowner owed at least 25 percent more than the value of the property. (The loan-to-value was 125 percent or greater.) A foreclosure with equity was defined as one where the value of the loan was equal to or smaller than the value of the home. (A loan-to-value ratio of 100 percent or less.)

The states with the highest percentage of deeply underwater foreclosures were: Nevada (65 percent of foreclosures were deeply underwater), Florida (61 percent), Illinois (61 percent), Michigan (55 percent), and Ohio (48 percent)."

I am still showing and selling many foreclosures.  It isn't easy, even for an agent, to search specifically for foreclosure properties in the Northern IL MLS (multiple listing service).  That's because it isn't mandatory that listing agents specify that the listing is a foreclosure.  Some of the banks don't want it disclosed, although I'm not sure why.  I've had some buyers that only want to look at disclosures because they think they're the best values.  In many cases they are, but there's always a lot of buyer competition and they can sell for more than asking price if they're a decent property.

Although I can't confirm that this is 100% accurate, there are currently 16 Homer Glen homes that are foreclosures, 24 Orland Park foreclosures and 36 Oak Lawn foreclosures, just to give a comparison of 3 different southwest suburbs.  These are single family homes and don't take condos and townhomes into account.  As far as these figures go, you need to consider the ratios. For 2013, here are the sales of single family homes for each of these suburbs:

Homer Glen - 217 homes sold
Oak Lawn - 547 homes sold
Orland Park - 440 homes sold

Based on those figures, a ratio of current foreclosures against the amount of homes sold in each suburb last year shows the following:

Homer Glen current foreclosures vs. homes sold in 2013 = 7+%
Oak Lawn = 6.5+%
Orland Park = 5.45+%

Last year Oak Lawn was part of a program called CityLift because it had such a large amount of foreclosure properties.  It might have been because of the amount of foreclosures and not a ratio, since percentage-wise it falls below Homer Glen, which is not a suburb I would consider as having a high amount of foreclosures.  I show many more foreclosure properties in Oak Lawn than Homer Glen or Orland Park combined.  The difference could be the lower prices of Oak Lawn vs. Homer Glen and Orland Park and the fact that more first-time buyers and investors are attracted to the lower Oak Lawn prices.  Also, maybe the amount of foreclosures in Oak Lawn has been reduced since last year.

If you're interested in foreclosure properties please call The Judy Orr Team at 708-536-8200.  We have sold many foreclosures and know how the process works.

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