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82 STATE OF AFFAIRS: MIDWEST » Illinois RANK: 7 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2014 2.43% 2.88% 7.9 YEAR AGO 2.75% 5.06% 9.2 YEAR-OVER-YEAR CHANGE -11.7% -43.1% -1.3 Top County HANCOCK COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2014 4.40% 8.75% YEAR AGO 2.66% 5.90% YEAR-OVER-YEAR CHANGE 65.4% 48.1% Top Core-Based Statistical Area LINCOLN, IL 90+ Day Foreclosure Delinquency Rate Rate APRIL 2014 3.69% 5.79% YEAR AGO 3.45% 7.71% YEAR-OVER-YEAR CHANGE 7.0% -24.8% 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 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary April 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. IN THE NEWS Chicago-Area Homes Sell Faster with Higher Prices in April Homes were selling faster and at higher prices in the metropolitan Chicago real estate market in April, according to a recent analysis of market activity by RE/MAX. However, sales of distressed homes, either through foreclosure or short sales, fell off steeply for the month as the housing market continued to work through the foreclosure process. e median price of all homes sold in Chicago and its surrounding seven-county metropolitan area was $190,000, 9 percent higher than the previous year. Average days on the market dipped from 128 days last year to 101 days in April, the shortest average mar- ket time for any spring month since 2006. RE/MAX found that a 20 percent decline in distressed property sales was a "major fac- tor" in the 9 percent drop in total unit sales as compared to last year. Distressed proper- ties made up 78 percent of the 859-property decline. "Rising home prices were evident in the three most populated of the metro counties, Cook, DuPage and Lake. e median home sales price rose 14 percent in Lake to $212,000, 10 percent in Cook to $190,000, and 9 percent in DuPage to $233,750. In McHenry County, the median price for April rose 11 percent to $165,000," the company found. Illinois Legislative Update: Senate Bill 2664 ere have been two bills of note that have been introduced and have passed both houses of the Illinois legislature that affect foreclosures and the subsequent REOs. e first, Senate Bill 2664, sponsored in the Senate by Sen. John Mulroe (D-Chicago) and Rep. Sam Yingling (D-Hainesville), is designed to prevent abuses by condominium associations by limiting the fees that can be applied to the buyer of a foreclosed property and to facilitate the sale of the property to the new buyer. Senate Bill 2664 stops the current practice in which purchasers of distressed condomin- ium units are stunned to discover at closing that they owe back assessments to the associa- tion—sometimes in sizable sums. ese back assessments may also be loaded up with spe- cial assessments and attorney's fees incurred and unpaid by the previous owner. Senate Bill 2664 protects innocent owners from being put in this position and eliminates the ambiguity that is causing sales of distressed units to be impeded or delayed, often resulting in litiga- tion or a threat of litigation. Senate Bill 2664 creates a clear and fair formula for calculating the amount to be paid by these purchasers and gives them notice of this obligation. It clarifies and caps the total amount the purchaser may be liable for—no more than an amount equal to the unit's unpaid regular monthly assessments for the nine-month period immediately preceding the judicial foreclosure. is maximum amount can include attorney's fees and costs incurred by the association prior to closing because of the nonpayment of these assessments. e new measure limits the fees that can be applied to the sale to nine months of "regular monthly assessments." is is a known amount. e mortgagee (if the successful bidder at the sale) has the obligation to pay monthly assessments commencing after the foreclosure sale, so it will already know how much the monthly assessments are at the time it hires a broker. e broker will include this amount in the listing sheet. A prospective purchaser can easily multiply the amount of the regular monthly assessment by nine to calculate the maximum exposure under the proposed amendment. e provisions of the bill will apply to distressed units in a purchase at a judicial foreclosure sale (other than by a mortgagee) and a purchase from a mortgagee that acquired title through a judicial foreclosure, a consent foreclosure, a common-law strict foreclosure, or the delivery of a deed in lieu of foreclosure. Senate Bill 2664 also improves the notice provisions to prospective purchasers to be more clear and timely by requiring the board of managers to produce for the seller and the prospective purchasers within 14 days information about the condominium unit. is would include a copy of the condominium instruments, amounts due, and any rules and regulations. If the as- sociation is self-managed, it allows 21 days. Current law allows 30 days that is often too slow, and the proposal allows the board the flexibility to do it either electronically or in writing. is bill easily passed the Senate but was lobbied hard by condo associations and passed the House by a narrow margin. It was to be certified within the next 30 days of that action and sent to the governor. e second Bill is SB 2730, Strict Fore- closure. ere are times when a foreclosure has been completed only to find that there is a junior lienholder who was not named in the foreclosure action. is can happen due to a mistake by the title company when reviewing the title for the foreclosure action. It could happen due to a mistake by the law firm in failing to name the junior lienholder. In either of these situations, the subsequent REO sale Illinois Re/Max Professionals 630.768.5175 Office 630.768.5175 Cell edjrsellsreos@wearepros.com 484 W. Boughton Rd., Suite C Bolingbrook, IL 60440 Follow my listing on Twitter: twitter.com/Ed_Lukasik_Jr Edward Lukasik Jr. Broker/ Owner

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