Rising Rate of Foreclosures Cause Of Concern

July 24th, 2008

The number of foreclosure homes are on the way to increasing substantially more in 2008 as compared to 2007 in Boone, Ogle and Winnebago counties. The officials recorded the number to be 631 homes until June this year and this is supposed to cross 938, the total of 2007 easily. Among these three counties, the situation is the worst in Boone County. Boone County Circuit Clerk’s Office reported that till June this year, 257 cases of foreclosure have already been filed, while the number was 394 throughout last year. The total number of housing units in this county was only 15,414 according to the 2000 census. According to Debbie Carlson of Coldwell Banker Premier’s Belvidere office, rapid growth in the real estate market in the last 10 years is responsible for this foreclosure crisis.

Carlson added that many commuters had moved to this county during the time of Interstate 90, and that increased the real estate values. That fact also has made a big difference between the markets of Boone County and Winnebago County. In 2007, an average value of a home was $ 208,465 in Boone, while in Winnebago the price was about $133,295. In Winnebago County, number of houses heading towards foreclosure is about 302 until June this year.

The rising rate of foreclosure is not only affecting the borrowers but also the local governments. Along with these mortgage holders, the governments also have to bear some financial responsibilities, even more than that of borrowers. Government’s responsibilities include police and sheriff costs, unpaid utilities, trash removal, and inspections. Moreover, those foreclosed houses become dens of anti-socials and criminals. They keep on removing costly construction materials; be it aluminum siding, copper wiring, doors or windows.

However, Carlson is happy to see a change among the neighbors of those foreclosed real estate properties. They are trying to keep their eyes out on those abandoned houses. It helps many people stop pilfering them.

Rising number of foreclosures may have an impact on those having a house in the market but it not so terrible. According to Keith Kelly of Dickerson & Nieman Realtors Inc, selling houses for over 21 years, if it is urgent for somebody to sell his house then it’s alright, but if he just wants to test his home-value, then this may not be the right time.

Real buyers are not interested in foreclosed houses as they can get houses with owners in a much better condition. However, the investors opt for these abandoned properties as they do not plan to live in them.