Foreclosure filings in Chicago area edge up in June

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Updated: July 20, 2011 4:39PM

The number of homes hit with foreclosure filings in the Chicago metropolitan area edged up 2.3 percent in June from May to 9,870 homes, and dropped 26.9 percent from June 2010, according to the latest report from RealtyTrac, which shows documentation problems continue to slow filings across the country.

Because of the problems as many as 1 million foreclosure actions nationally that should have taken place this year will be pushed into 2012, delaying the housing market recovery, RealtyTrac said.

Nationally, the number of homes receiving filings rose 3.6 percent from May to 222,740 and fell 29 percent from June 2010.

“It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market,” James Saccacio, RealtyTrac chief executive officer, said in a statement. “Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish this doesn’t appear to be the case.

“Processing and procedural delays are pushing foreclosures further and further out…This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number.”

In the Chicago metropolitan area in June, one in every 383 homes was in foreclosure. The number of bank-owned properties jumped 19.3 percent from May to 2,310, but dropped 24.5 percent from June 2010.

Statewide, 11,014 homes received filings last month, up 4.2 percent from May and down 25.2 percent from June 2010. One in every 480 homes in Illinois received a filing, giving the state the 10th highest foreclosure rate.

Nevada had the highest rate with one in every 114 homes receiving a filing in June.

Nationally, for the first half of the year 1,170,402 homes received filings, a 25 percent decrease from the previous six months and a 29 percent decrease from the first half of 2010. One in every 111 homes received a filing, RealtyTrac said.