The "F" Word

Today, we begin a series of blogs about the "F" word. I'm talking about foreclosures, of course! What did you think I meant?

According to RealtyTrac.com, a website that follows foreclosures, and, for a fee, allows you access to that information, there was an 81% increase in foreclosure notices from December, 2007 to December, 2008. That is an incredible statistic, isn't it? An 81% increase in anything is enormous number. Think about it, an 81% increase in your grocery bill or time spent commuting or (heaven forbid) your weight is mind boggling!

But what does this statistic really mean? We are going to examine that, along with other issues relating to the effects of foreclosure in our hometown. There is no way we will avoid the scourge of foreclosure in our neighborhoods, but how are our Villages and school districts are planning for it will determine how we will handle the inevitable. We intend to explore this in future blogs.

But, for now, let's take a look at the actual foreclosures in Wilmette, Kenilworth, Winnetka, Glencoe and Northfield.

When we use the term foreclosure, it can mean one of three processes. There is preforeclosure: during this period a homeowner fails to make timely mortgage payments and is sent a notice of the lender's intention to foreclose. A Lis Pendis, a written notice is often filed in the Cook County Tax Assessor's Office, alerting those who may be interested in purchasing the home that they will have to obtain the Bank's approval as well as the seller's in any offer to purchase. The homeowner usually stays in possession of their home during this time, and will often attempt to modify the terms of the loan.

If the loan is not modified, then there will be an Auction or Sheriff's Sale of the property. This is the next phase of what we commonly think of as foreclosure. While anyone can buy the property, usually for the value of the outstanding lien (or mortgage), most often, the lender will buy its' own asset. During this time period, the homeowner is usually required, by law to move out of the home.

Finally, there is REO (real estate owned) or Bank owned property. The lender owns the property outright, and is responsible for upkeep, management and payment of taxes on it.

The different phases of foreclosure make a difference when we evaluate their effect on our hometowns. But, for the purposes of the following, foreclosure will mean all three phases.
At the present time, the following homes are in foreclosure: Wilmette, 36; Kenilworth, 2; Winnetka, 17; Glencoe, 20 and Northfield, 6. (source: Trulia.com, Zillow.com) These numbers, while unfortunate do not connote the same sense of catastrophe as the 81% statistic used by Realtytrac.com. Again, it pays to look closer at the statistics, rather than rely on the headlines.

It is a tragedy to be foreclosed upon, there is no doubt about it. In these situations, individuals lose much more than their homes. No one willingly wants to paticipate in this process. Many times there are life altering events, such as illness, death or divorce that precipitates the loss of a home. But, our community also suffers a loss when our friends and neighbors have their homes foreclosed. We intend to explore this in future blogs and help identify sources of assistance if you find yourself in this situiation. Stay tuned.

Make My Day Moment: for those of you who know this chick and my "second" son, Dan, I am proud to report that he was made squad leader of his Marine Boot Camp Platoon. He is the top shot expert on the rifle range, 1st class physical fitness and swim qualification 2 (the highest levels attainable in Boot Camp. The few, the proud, the marines!