Chicago Foreclosure Activity Returning To Pre-Pandemic Levels

Chicago Foreclosure Activity Returning To Pre-Pandemic Levels

Chicago foreclosures are returning to their normal

ATTOM Data Solutions came out with their March and Q1 Foreclosure Market Report on Thursday. The headline from that report sounds scarier than it really is. All that it boils down to is that foreclosure activity is gradually returning to pre-pandemic levels now that the foreclosure moratorium has ended. The month over month and year over year percentage increases are rather meaningless, given how artificially depressed activity was. However, it’s still a little more complicated than that because the forbearance programs continue and that may be depressing foreclosures – but more on this later.

Foreclosure activity is gradually increasing and likely to return to the pre-pandemic trend line

As Rick Sharga, executive vice president of market intelligence for ATTOM, pointed out “even with the large year-over-year increase in foreclosure starts and bank repossessions, foreclosure activity is still only running at about 57% of where it was in Q1 2020, the last quarter before the government enacted consumer protection programs due to the pandemic.”

Of course it’s always entertaining to see just how long it takes to complete a foreclosure – and it’s still a long time – 2 1/2 years! But it varies dramatically by state, depending upon local laws. So it only takes 133 days on average in Montana while it takes 2578 days in Hawaii. So you can basically live free in your house for around 7 years in Hawaii before you get kicked out.

It still takes about 2 1/2 years to complete a foreclosure

As for Chicago, yeah, foreclosure activity ticked way up again but if you look at the graph below closely you’ll see that the current level is no worse than it was around February 2020 before that nasty Covid hit us. Chicago currently has the 6th highest foreclosure rate among major metro areas while Illinois had the highest rate among states.

After a dramatic plunge following the pandemic foreclosure moratorium Chicago foreclosure activity has just now begun to resurge now that the moratorium has ended.

So the question that has been floating around is how high will foreclosures go now that the foreclosure moratorium has ended and is no longer keeping a lid on foreclosures? I like to look at delinquencies as some indication of what the future holds for foreclosures. So check out the graph below from Black Knight’s February Mortgage Monitor Report. It shows how the delinquency rate has recovered to almost historically low levels, though it ticked up slightly in February.

The nation’s mortgage delinquency rate continues to improve and seems to have recovered from the pandemic

But what about those forbearance programs? Aren’t those just delaying the inevitable for hundreds of thousands of past due homeowners? Well, I checked with Black Knight and they confirmed that, although forbearance is technically not counted as delinquent, it is included in their delinquency numbers which look pretty good. So this is not the ticking time bomb that some suspect.

Chicago Shadow Inventory

The number of Chicago homes that are in some stage of foreclosure has been very modestly ticking up for about 8 months. March had a 91 unit increase but, as you can see in the graph below, it’s not making a dramatic impact.

The number of homes in foreclosure in Chicago declined with the moratorium during the pandemic and doesn’t seem to be rising since.

#Foreclosures #ChicagoForeclosures #Coronavirus

Gary Lucido is the President of Lucid Realty, the Chicago area’s full service real estate brokerage that offers home buyer rebates and discount commissions. If you want to keep up to date on the Chicago real estate market or get an insider’s view of the seamy underbelly of the real estate industry you can Subscribe to Getting Real by Email using the form below. Please be sure to verify your email address when you receive the verification notice.

Enter your email address:Delivered by FeedBurner

Welcome to ChicagoNow.

our bloggers,

post comments, or

pitch your blog idea.

Getting Real On Facebook

Subscribe To Getting Real

 RSS Feed

Enter your email address:

Delivered by FeedBurner


Meet The Blogger

Gary Lucido

After 20 years in the corporate world and running an Internet company, Gary started Lucid Realty with his partner, Sari. The company provides full service, while discounting commissions for sellers and giving buyers rebates.

Featured Posts

How Realtor’s Lie To Get Your Business
The #1 Myth About Selling Your Home
The #2 Myth About Selling Your Home


market conditions (582)
Chicago home prices (237)
Case Shiller index (151)
Chicago foreclosures (137)
industry issues (92)
Chicago monthly real estate market update (90)
real estate agents (66)
Chicago real estate market (64)
foreclosures (60)
Neighborhood news (58)

Monthly Archives

April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010


Getting Real’s favorite blogs

Crib Chatter
Real Estate Decoded
Smart Mortgage Advice
The Real Deal – Chicago

Read these ChicagoNow blogs

Cubs Den

Chicago Cubs news and comprehensive blog, featuring old school baseball writing combined with the latest statistical trends

Pets in need of homes

Pets available for adoption in the Chicago area


It’s like the couch potato version of Mr. and Mrs. Smith.

About ChicagoNow



Recent posts RSS

Privacy policy (Updated)

Comment policy

Terms of service

Chicago Tribune Archives

Do not sell my personal info

©2022 CTMG – A Chicago Tribune website –
Crafted by the News Apps team

Read More

Leave a Comment

Your email address will not be published.