Chicago sees rise in foreclosure auctions

A recent article in the Chicago Tribune revealed that during the first six months of 2012, the Chicago area saw the number of auctions of foreclosed homes more than double. The source explained that this rise puts a strain on the resources of the city's courts system and possibly delays the housing market recovery. However, people looking at homes for sale in Chicago could consider investigating foreclosure auctions in order to snatch up a deal.

During the first six months of 2012, there were 17,432 homes in the six counties of the Chicago area that were auctioned off. The Tribune further revealed that 91.3 percent of these homes were repossessed by lenders and became bank owned, according to data from the Woodstock Institute, a research and public policy organization.

While a rise of foreclosures could signal an ideal buyer's market for many looking at real estate in Chicago who are hoping to take advantage of these auctions to find a deal, this does leave the city concerned. The Chicago Sun Times reported that City Council Alderman Edward M. Burke is holding a joint committee hearing on August 14 to discuss the controversial idea of government seizure for underwater mortgages.

According to the source, "Burke's resolution noted that Illinois has the nation's fifth-highest foreclosure rate and that Chicago alone had 4,747 new foreclosure filings during the first quarter of this year."