The real estate market in cities around the country is facing one of the most difficult moments in recent memory. Recent data from the Mortgage Bankers Association shows that foreclosures are continuing to rise and hitting new highs.
According to the report, the proportion of all mortgages that were in some part of the foreclosure process rose to 0.83 percent during the fourth quarter, up from 0.78 percent in the previous quarter.
Also, from the data released by the Mortgage Bankers Association, it appears that the end is not yet in sight. The percentage of all mortgages that fell into delinquency rose to 5.29 percent during the fourth quarter. Delinquent payments over consecutive months lead to a foreclosure.
The foreclosure crisis is led by homeowners with a poor credit record that took out subprime loans that offer low introductory interest rates. After two years these rates rise to levels that many homeowners are unable to pay, leading to foreclosure.
Ben Bernanke, the Fed Chairman, called on banks and lenders to reduce the amount of money owed by homeowners facing foreclosure, a step that goes far beyond the recommendations made by President Bush and other government officials.
However, buyers looking for great deals on Chicago Homes For Sale may start to see lower prices, which could spur demand in the region.
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