Foreclosure-related sales are up in Illinois

As the year draws to a close and many are anticipating the expiration of several homeowner friendly tax breaks, there appears to be an increase in shorts sales and other foreclosure-related sales in Illinois. The third quarter saw an increase in foreclosure-related sales of 39 percent. More and more homeowners with delinquent mortgages are turning to shorts sales and foreclosure to get out of their home.

Most homeowners in Illinois would rather arrange a short sale of their home than face foreclosure. However, with time possibly running out on tax exemptions, some homeowners just don't see the benefit in trying to hang on to their home. This can be seen by the fact that 43 percent more homes were sold in foreclosure-related sales this year than this time last year.

Along with homeowners, lenders are also seeing the benefits of short sales versus foreclosure. Lenders don't really want to own the properties. Short sales allow lenders the chance to get some money out of the home without ending up with an asset they have to maintain and sell.

Even with the increase in short sales, there are still thousands of homeowners struggling to save their homes from foreclosure. For these homeowners, bankruptcy may be a good way to get another chance to save their home. Filing for a bankruptcy reorganization can give homeowners the breathing space they need in order to deal with their financial situation and perhaps even come to an agreement with their lender that will allow them to stay in their home. For others that opt for a bankruptcy liquidation, they can typically wipe the slate clean and work toward achieving financial stability all over again.

Source: STLBeacon.org, "Use of short sales to avoid foreclosure continues throughout the U.S.," Mary Delach Leonard, Dec. 5, 2012

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