Chicago Foreclosure Statistics 2024-2023

1. In January 2024, lenders initiated foreclosure processes on 21,770 properties across the U.S., marking a 6% increase from the preceding month and a 5% year-over-year rise​​.
2. Chicago recorded 763 foreclosure starts in January 2024, reflecting its significant share of foreclosure activities in major metropolitan areas​​.
3. The nationwide foreclosure filing rate for January 2024 was one in every 4,236 housing units, showcasing ongoing foreclosure activities​​.
4. Illinois demonstrated a high foreclosure activity, with 913 foreclosure starts in January 2024, contributing to the national trend​​.
5. The Cook County area of Chicago observed a decrease in foreclosure cases in December 2023, suggesting fluctuations in foreclosure activity over time​​.
6. Foreclosure filings on vacant, “zombie” properties accounted for approximately 3.8% of all U.S. foreclosures in the process during the fourth quarter of 2020, highlighting the issue of unoccupied homes facing foreclosure​​.

Key Illinois Foreclosure Trends 2024-2023

 

1. Foreclosure rates in major metropolitan areas with over 1 million population, such as Reno, Utah, and Vegas, showcase diverse foreclosure trends nationwide​​.
2. The foreclosure process duration has increased, with properties foreclosed in Q2 2022 taking an average of 948 days from the first notice to completion, illustrating the lengthy process of foreclosure​​.
3. Illinois has one of the highest foreclosure rates in June 2022, with one in every 2,096 housing units receiving a foreclosure filing, underscoring the state’s significant foreclosure activity​​.
4. Foreclosure filings in Cook County, IL, showed a decrease of 12.92% in December 2021, indicating variability in foreclosure rates over time​​.
5. Chicago’s foreclosure activities in January 2024 included 194 completed foreclosures (REOs), emphasizing the ongoing challenges in the housing market​​.

More about Chicago IL Foreclosure Stats and Facts

 

The recent trends and data on foreclosure activities in Chicago and the broader U.S. real estate market provide a nuanced perspective for buyers, sellers, and real estate investors as we navigate through 2024. The fluctuation in foreclosure rates, coupled with an increase in foreclosure filings in some areas while witnessing declines in others, signifies a shifting landscape within the real estate market.

For buyers, the scenario presents a dual-edged sword. On one hand, increased foreclosure rates could lead to more opportunities to purchase homes at below-market prices, particularly in areas like Chicago where foreclosure activities remain substantial. This could be particularly advantageous for first-time homebuyers or investors looking for value buys. On the other hand, the potential for buying homes in foreclosure might come with additional challenges, including competition from other buyers, potential issues with the properties themselves, and the complexities of navigating foreclosure auctions.

Sellers in markets with rising foreclosure rates might face downward pressure on home prices, as foreclosed properties typically sell for less than comparable non-foreclosed homes. This could make it more challenging to sell their homes at desired prices, especially in areas with high foreclosure activity. Conversely, in areas where foreclosure rates are declining and the market stabilizes, sellers might find it easier to achieve favorable sale prices, benefiting from a reduced inventory of distressed properties.

Real estate investors, particularly those specializing in distressed properties, may find the current environment ripe with opportunities. The increase in foreclosure starts and completions in certain areas provides a potentially lucrative pipeline of investment properties. However, this also means that investors need to be diligent in their due diligence, understanding the local market conditions, the condition of the properties, and the potential for return on investment. The variability in foreclosure timelines, which can extend the foreclosure process significantly in some states, requires investors to be strategic about where and when they invest.

 

Cited Sources:

 

• https://www.attomdata.com/news/market-trends/foreclosures/u-s-foreclosure-activity-continues-to-see-an-annual-increase/
• https://www.attomdata.com/news/foreclosure-trends/u-s-foreclosure-activity-sees-notable-increase-in-january-2024/
• https://www.prnewswire.com/news-releases/us-foreclosure-activity-continues-to-see-an-annual-increase-302087091.html
• https://www.prnewswire.com/news-releases/us-foreclosure-activity-sees-notable-increase-in-january-2024-302060436.html
• https://www.illinoisrealtors.org/wp-content/uploads/2023/12/SHDRE-annual-forecast-for-2024.pdf
• https://chicago.suntimes.com/money/2024/02/13/chicago-among-top-cities-rising-home-foreclosures-reos
• https://safeguardproperties.com/u-s-foreclosure-activity-sees-notable-increase-in-january-2024/
• https://www.housingwire.com/articles/u-s-foreclosure-activity-ticked-up-significantly-in-january-attom/
• https://athensceo.com/news/2024/02/us-foreclosure-activity-sees-notable-increase-january-2024/
• https://data.cityofchicago.org/Community-Economic-Development/Foreclosed-Rental-Property/yhcw-iu53/about_data