The study was designed to determine the factors that could help an area recover from the foreclosure crisis and to examine how federal, state and private sector regulations affect various metropolitan areas.

According to the study, the number of distressed foreclosure houses in Chicago was somewhat controlled due to the effectiveness of some of the city’s consumer laws.

These laws provided protection to consumers against predatory lending, gave distressed homeowners ample time between notices of defaults and foreclosure sales and created collaborations between public and private organizations.

The study concluded that Chicago is one of the most resilient cities when it comes to the foreclosure issue. It noted that policies initiated in the state between 2001 and 2002 helped protect homeowners from predatory lending.

Furthermore, the state also enacted a law that gives a 265-day grace period to distressed homeowners between the filing of notices of defaults until foreclosure sales, double the amount of the national average of 120 days.

The study explained that the entire foreclosure proceedings can take up to one year or longer, including the filing of notices of defaults to auctions or foreclosure sale. This gap, the study said, can help homeowners find ways to avoid foreclosures such as negotiating with their lenders for loan modification or refinancing.

Furthermore, the study noted that the city of Chicago benefitted from various organizations that are committed to help homeowners avoid foreclosures and for neighborhoods to recover from the impact of the crisis.

The study cited the city’s Housing Department and policy and advocacy group, Woodstock Institute in using data to draw attention to the foreclosure problem. Additionally, the study also praised the Home Ownership Preservation Initiative which allowed regional collaboration among nonprofit and financial organizations. The study pointed out that collaborations between nonprofit organizations and public groups have helped boost foreclosure counseling services in Chicago.

But the study noted that even if foreclosure counseling services have helped a great number of distressed homeowners in the city, the effort needs to spread to suburban areas where foreclosure activity is reportedly on the rise.

Consumer Laws Helped Stave Off Foreclosed Homes Foreclosure is a post from: Foreclosure Homes Investing

Data from the National Association of Realtors showed that 50 percent of sales generated in the first quarter of this year were attributed to first-time homebuyers. And 50 percent of these sales consisted of repossessed homes.

Repossessed properties that have become popular to first-time homebuyers are foreclosed homes and short sales, private deals in which the distressed homeowner sells his house for less than the total amount he owed on his mortgage.

The unabated foreclosure crisis has created a glut of distressed homes on the market and pushed down property values. And first-time homebuyers are quick to take advantage of the below market value properties, a trend that benefited neighborhoods and housing market.

RW Real Estate Advisors principal Lance Ramella explained that the first step towards the housing market recovery is selling below market value properties and those are foreclosures. He pointed out that the real estate industry will not see any sustainable price increase until foreclosure properties will be taken out of the inventory list.

However, industry experts believed that zeroing out foreclosure properties on the inventory will take some time as lenders are once again initiating foreclosure proceedings following the lifting of the industrywide foreclosure moratoriums.

They also believed that efforts to modify or refinance troubled loans could not help the increasing number of homeowners who are unable to make mortgage payment because they have lost their job.

Based on RealtyTrac data, 38,966 properties in Illinois received foreclosure filings during the first three months of this year, a 32 percent rise from the last quarter of 2008 and 68 percent higher from figures in the first quarter of 2008.

One out of 135 houses in Illinois received foreclosure filings during the first quarter. This means that the state has the fifth highest foreclosure rate in the nation. For March of this year, foreclosure filings were received by 15,398 homeowners, representing an 8 percent rise from February and 79 percent increase from the total March 2008 figures. James J. Saccacio, chief executive officer of RealtyTrac, said that Illinois lost over 230,000 jobs since 2008 and experienced a significant decline in home sales. He also added that these factors helped drive the number of foreclosed home for sale at peak levels.

First-Time Foreclosed Home for Sale Buying in Illinois is a post from: Foreclosure Homes Investing

Foreclosure homes filings in DuPage County increased to 4,470 last year from 1,886 two years ago, reflecting a whopping 137 percent increase.

In Will County, foreclosure homes filings reached over 2,000. The county was the fastest growing area in the state during the peak of the housing market.

Meanwhile, foreclosure homes filings in Kane County increased to 3,451 last year from 1,614 filings in 2006, a staggering 114 percent jump, according to nonprofit Woodstock Institute which collects and compiles the foreclosure data.

Woodstock Institute’s data do not include distressed homeowners who are struggling to remain on their properties and avoid foreclosure homes.

Distressed homeowners in Illinois may now have allies on their fight to save their homes from foreclosures. Contacting a counseling group is considered to be the best defense for distressed homeowners to avoid foreclosure.

Borrowers facing the threat of foreclosures may ask assistance from local resources that are available for free. Non-profit counseling groups are there to help troubled homeowners avoid foreclosure by negotiating with lenders, providing paperwork assistance and offering explanation on homeowners’ rights.

Non-profit organizations Community Service Council of Northern Will County and Will County Center for Community Concerns are offering their counseling services for free to distressed homeowners. These nonprofits exist on federal and state grant funds and private donations.

Joliet-based Will County Center provides financial-related counseling services to distressed homeowners and funds to pay for overdue utility bills, improve home insulation and repair a furnace. A onetime emergency fund of $500 is provided to eligible families with combined income of not more than $27,500. This fund will be used to pay overdue mortgages and other household needs.

Meanwhile, the DuPage Homeownership Center provides assistance to families facing foreclosures. In 2006, the center was able to help 54 families. It increased to 272 families in 2008 and for January and February 2009, the center has already assisted 56 families.

On the other hand, Joseph Corp. in Kane County has noted a significant rise in the number of families it assisted when information about foreclosure prevention services in the area was included in water bills of residents.

Experts agree that the best way for distressed homeowners to prevent foreclosure is to seek help early.

Services to Help Prevent Illinois Foreclosure Homes is a post from: Foreclosure Homes Investing