Many times people lose their homes to foreclosure after missing out on several mortgage payments. Later the bank schedules an auction and the owners move out.
But in some cases now the foreclosures in Illinois are coming back to haunt borrowers even after they have moved out. How is this possible? These zombie foreclosures are the results of banks not holding auctions to sell the homes and hence the deed has not been transferred leaving borrowers still accountable for property taxes, fees and dues.
Ever since the slowing down of the real estate market 7 years back, about 12,030,564 homes for sale in Illinois have started the foreclosure process but have never completed it. About half of these are owners trying to get back into their homes and the rest are in some sort of suspension. That means many foreclosure properties in Illinois could be zombie foreclosures.
Many of these foreclosures in Illinois are din low income communities where foreclosures are so difficult to sell that sometimes lenders delay possession of property to save on taxes that stay under the name of the borrower. These debts remain undiscovered till many years and rise to such high values that they become insurmountable. The borrowers are blissfully unaware until it takes them by surprise and their takes another terrible hit.
This is the situation is making the life of foreclosure sellers in Illinois much tougher. While this does not affect buyers much this means to emphasize on how tough the situation is and how buyers are struggling with high mortgage rates.
It is a note for buyers to understand why banks delay possession on properties and make them wiser as to take possessions of their foreclosures properties in Illinois sooner.
But in some cases now the foreclosures in Illinois are coming back to haunt borrowers even after they have moved out. How is this possible? These zombie foreclosures are the results of banks not holding auctions to sell the homes and hence the deed has not been transferred leaving borrowers still accountable for property taxes, fees and dues.
Ever since the slowing down of the real estate market 7 years back, about 12,030,564 homes for sale in Illinois have started the foreclosure process but have never completed it. About half of these are owners trying to get back into their homes and the rest are in some sort of suspension. That means many foreclosure properties in Illinois could be zombie foreclosures.
Many of these foreclosures in Illinois are din low income communities where foreclosures are so difficult to sell that sometimes lenders delay possession of property to save on taxes that stay under the name of the borrower. These debts remain undiscovered till many years and rise to such high values that they become insurmountable. The borrowers are blissfully unaware until it takes them by surprise and their takes another terrible hit.
This is the situation is making the life of foreclosure sellers in Illinois much tougher. While this does not affect buyers much this means to emphasize on how tough the situation is and how buyers are struggling with high mortgage rates.
It is a note for buyers to understand why banks delay possession on properties and make them wiser as to take possessions of their foreclosures properties in Illinois sooner.
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