The latest numbers on foreclosure brought both good and bad news for Chicago.
According to a feature story by the Chicago Tribune, the number of housing foreclosures in the Chicago area fell in July. But the state of Illinois still has one of the highest foreclosure rates in the country.
The Tribune cited numbers from online foreclosure site RealtyTrac, which said that 6,572 homes received a foreclosure notice in July in an area stretching from Kenosha, Wisconsin to Northwest Indiana. That area, of course, includes the city of Chicago.
In the same area during July, the Tribune story reports that 2,267 additional properties received foreclosure notices while court-supervised foreclosure auctions were held on 2,516 more properties. Also during July, banks repossessed 1,789 properties in the area.
RealtyTrac’s numbers show that foreclosure activity in the Chicago area fell 12% from June and dipped 7% from July of 2013.
In more sobering news, Illinois had the 4th-highest foreclosure rate in the nation in July, trailing only Florida, Maryland and Nevada.
What if you are one of those people in Chicago who received a foreclosure notice last month? You might be able to sell your home in a short sale, a sale in which your lender allows you to sell your home for less than what you owe on your mortgage loan. If your lender allows a short sale, you can list your home at a lower price and maybe sell your home quickly before your lender has to take over possession of your home. A short sale will still put a black mark on your credit report, but it will at least help you avoid the longer stress of a drawn-out foreclosure proceeding.
You might also be able to convince your lender to accept a deed-in-lieu-of foreclosure. In this arrangement, you agree to voluntarily turn your home over to your bank, without forcing it to go through foreclosure.
Again, this option will cause your credit score to drop. But you can at least avoid the long foreclosure process.