Foreclosures - Blessing in Disguise?

Everyone knows how dramatically prices of homes have been falling in the last 2 years. Some estimates indicate that an average American home lost 25-30% of its peak value. The recent wave of foreclosures makes price declines even more acute. For home sellers, having a bank foreclosed property in the neighborhood is their worst nightmare since this type of homes sell from 20 to 40% below the area average.

On the other hand, in times of tight credit standards, more and more homes become available again to first time buyers who would not afford jumbo loans. Foreclosures play important role in the market correction and when it finally reaches the bottom, it will be much easier for a greater number families to afford their first home. Sure, thousands of other families will loose their homes by then, but greater affordability will result in even more people being able to buy real estate property.

Foreclosures have yet another positive effect on our industry - they make people excited - again! Everybody likes a good deal and foreclosed properties are exactly the type of deals some home buyers just can't refuse. In certain price ranges, foreclosed homes make up to 50% of all sales in the area. They act like a magnet for those buyers who were just sitting on the sidelines and waiting for better times to buy a home. In Illinois, foreclosures are on the rise. Recently, my office listed a foreclosed home in Glenview that once was appraised at $1,100,000 and now is listed at $639,900. That's more than $450,000 in depreciation! Please visit our website where you can see the list of foreclosed houses for sale in Cook County. All of you bargain hunters - get ready!

More time for home owners facing foreclosures in Illinois

Illinois governor Pat Quinn approved the legislation that grants additional 90 days to people facing foreclosures. The new law gives home owners the right to credit counseling and creation of a payment plan to get out of the foreclosure proceedings. Together with President Obama's Affordability and Stability Act of 2009, this move is meant to stop the rise of foreclosures that expert predict, could soon reach in Illnois the 100,000 mark.

Foreclosures hurt home sales in every area of Cook County. Almost every neighborhood has one. On the other hand, foreclosures in Arlington Heights is the hottest group of properties home buyers are after these days.