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» Illinois rank: 7 90+ Day Delinquency Rate Foreclosure Rate April 2013 2.8% Unemployment Rate 5.1% 9.3% year ago 3.0% 7.0% 8.8% year-over-year change -6.7% -27.2% 5.7% Top County Logan CounTy 90+ Day Delinquency Rate Foreclosure Rate April 2013 3.5% 7.7% year ago 3.3% 12.7% year-over-year change 4.9% -39.2% Top Core-Based Statistical area 90+ Day Delinquency Rate LInCoLn, IL Foreclosure Rate April 2013 3.5% 7.7% year ago 3.3% 12.7% year-over-year change 4.9% -39.2% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the April 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary April 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. Illinois Angela Robinson REO Team Leader A Division of Elite Properties Chicago 100 Saunders, Suite 150 Lake Forest, IL 60045 847.714.4457 (c) ar@reoelite.com www.reoelite.com IN THE NEWS Home Sales in Illinois Soar 25% from Previous Year Illinois home sales jumped in April, as prices also made big leaps. The Illinois Association of Realtors (IAR) reported sales were up 25.3 percent year-over-year throughout the state. According to the association, statewide home sales—including single-family homes and condos—totaled 12,621 in April, the best performance for that month since 2007. For the same period, the statewide median price was $145,900, up 7.7 percent from $135,500 in April 2012, IAR reported. "The spring numbers are very encouraging, especially as we see substantial tightening of the numbers of homes on the market," said Michael D. Oldenettel, CRS, GRI, IAR president and managing broker/ owner with RE/MAX Results Plus. "While prices are inching up slightly due to strong demand, the interest rates continue to be a powerful lure for those who want to own a home and the spring housing market looks to be a strong one." Out of the 102 counties reporting to IAR, 55 showed year-over-year home sales gains, while 42 showed yearly median price improvements. Meanwhile, the inventory of Illinois homes for sale in April was 62,503 units, a 30.6 percent drop compared to last year. The time it takes to sell a home in the state has also fallen, with days-on-market averaging 89 in April, down from 111 days just 12 months earlier. "The housing market is exhibiting signs of a more stable recovery with an anticipated strong early summer led by strong sales gains and more modest but still positive gains in median prices," said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. "Average time on the market, the growth in the pending sales index, and an increase in the share of total sales captured by more expensive properties point to a return to greater stability in the market." High Delinquency Rate the Result of Long Cure and Foreclosure Timelines While the national mortgage delinquency rate might seem "stubbornly high," it would actually reflect normal levels seen 10 years ago if cure or foreclosure timelines were shortened, according to TransUnion. The Chicago-based credit bureau says the first-quarter national mortgage delinquency rate—counting 60-plus-day delinquencies— was 4.56 percent, which is more than double the pre-crisis norm. However, if aging, 180-plus delinquencies were taken out of the equation, a new TransUnion analysis found the delinquency rate would actually drop to around 1 percent. VISIT US ONLINE @ DSNEWS.COM The credit bureau also reported newer mortgages are performing well and avoiding delinquency, with only 2.5 percent of loans originated in 2010 rolling into delinquency status within their first three years. On the other hand, 14.5 percent of mortgages originated in 2007 became delinquent at least once within their first three years. As of February 2013, mortgages originated before 2009 accounted for 86 percent of all delinquent mortgages. This suggests the issue with the high mortgage delinquency rate is not new loans that are falling behind on payments. "[E]ven the older vintages, at one time deteriorating quickly, are now contributing new delinquent borrowers at rates nearly identical to the good-performing newer mortgages," said Tim Martin, group VP of U.S. housing in TransUnion's financial services business unit. Rather, the real culprit leading to an elevated delinquency rate, according to TransUnion, is the long timeline for handling problem loans. "It's no longer a credit quality or home price depreciation issue, and we are not adding many new delinquent mortgage borrowers into the pool these days," Martin explained. "Instead, it's an issue of the timelines to cure or foreclose. We are simply not draining the pool very fast; and the size of the 'drain' varies significantly by state." To make its point, TransUnion analyzed the impact of increasing cure and foreclose timelines on delinquency rates. After excluding borrowers who have remained in delinquency status for 180 days or more, TransUnion determined the mortgage delinquency rate would have peaked in 2009 at about 3.05 percent compared to the actual peak of 6.89 percent. And, the current delinquency rate of 4.56 percent would actually be 1.68 percent, which is the lowest level since the second quarter of 2003 when the delinquency rate was 1.67 percent. STAT INSIGHT 10.7% Share of investor purchases in Chicago as of the end of last year. Source: CoreLogic and Wells Fargo Securities 75

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