URBALO

The number of foreclosures reported in the U.S. last month jumped 93 percent from July 2006 and rose 9 percent from June. This is an again an obvious sign that homeowners are having trouble making payments and finding buyers during the national housing downturn. The average time of properties on the market has increased also and this makes it even more difficult for people that find themselves in a bind and need to sell fast.

According to the report, there were 179,599 foreclosure filings reported during July, up from 92,845 during the same period a year ago. The number of foreclosures for June was at high as 164,644.

According to Mary Umberger, a Chicago Tribune columnist, some other factors that have contributed to this jump in the foreclosures numbers, are the rise in the real estate taxes and assesments, along with an interest rates increase. But the main reason for the situation a lot of homeowners are in, are the subprime and adjustable-rate mortgages.

In the Chicago area, the situation is a little less dramatic with the foreclosures numbers for the first half of the year are up 42 percent from a year earlier.
To minimize their losses, the banks are willing to take less than what’s owed to them, on average about 20 percent.
The current situation is hurting the real estate agents as well who are often faced with a situation where the lenders change their mind before closing.