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 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

A standard foreclosure process usually starts with the lender sending a notice of default but in states like Massachusetts, the first step involves the lender filing for a “petition to foreclose”. The foreclosure situation in the state can thus be predicted based on the number of foreclosure petitions filed. If there is a considerable increase or decrease, the number of repo homes could follow such trend.

Based on a report released by The Warren Group, there were 4,737 foreclosed home for sale from the period starting January to June 2009. Comparing the figure to that of last year’s, there was a considerable 29.4 percent decline.

Industry experts believe that the decline can be attributed to the new state legislation that encouraged mortgage lenders to agree to a loan modification option for the troubled borrowers. With a loan modification, borrowers can choose to lower their monthly mortgage payments or lengthen the loan term. Either way, they will be able to have a fighting chance of keeping their property from foreclosed home for sale listings.

But, according to the same report, there was also a 6 percent increase in foreclosure petitions for the same year. To be exact, lenders petitioned for 13,813 foreclosures up from 13,076 in 2008.

Foreclosure petitions for June also jumped by 800 percent, from 350 last year to 2,835 and 21.7 percent from May 2009. The number of foreclosure petitions for June is actually the highest in the last 13 months.

It is, therefore, not surprising, that local industry experts are worried especially since the recent foreclosure petition figures were taken after the recorded increase in the state’s unemployment rate. Joblessness is currently at its peak since September of 1992.

Based on all these figures, it is possible that the number of foreclosed home for sale in the state will soar once again unless mortgage lenders and troubled borrowers start communicating and finding a common ground so that the foreclosure will not proceed.

Massachusetts Foreclosed Home for Sale Down, Experts Still Worried is a post from: Foreclosure Homes Investing