Thousands to Re-Enter Foreclosure Pipeline, Illinois Among Most Affected States

It’s been nearly six months since the foreclosure moratorium for federally backed mortgage loans expired on July 31, 2021, and foreclosure activity has been on the rise ever since.

The end of the moratorium cleared the way for the Department of Housing and Urban Development (HUD), the Department of Veteran Affairs (VA), and the Department of Agriculture (USDA) to resume the foreclosure process on thousands of homes and properties, leading to a 27% jump in foreclosure filings in August 2021 and a 49% increase from the previous year.

As expected, these percentages continued to rise through the end of 2021. According to ATTOM’s Year-End 2021 U.S. Foreclosure Market Report, 17,971 foreclosure filings were initiated in December 2021—a 65% increase from December 2020.

Illinois has been among the hardest-hit states in the country, with the highest number of repossessed properties through foreclosure and the second-highest foreclosure rate in 2021.

As 2022 rolls on, what should homeowners in Illinois—and across the country—expect?

“Although I don’t anticipate that the number of foreclosures will approach the levels seen in the Great Recession of 2008, there is a big wave of default activity coming out and we will continue to see foreclosure activity increase as loans that were in default before the pandemic moratorium re-enter the foreclosure pipeline,” says Bardia Fard, principal attorney of foreclosure defense firm The Law Center in Chicago.

In addition to a reemergence of pre-moratorium default mortgages, states face a backlog of foreclosure filings that were submitted but never processed during the pandemic.

“Lenders are gearing up for battle,” warns Fard. “Now more than ever, if you are at risk of going into foreclosure or struggling to make your mortgage payment, it’s important to have a competent and aggressive attorney in your corner.”

About The Law Center: We are a team of specialists that are passionate about foreclosure defense and helping homeowners at the highest level. Our staff and attorneys approach each client and each property as a new challenge, one that requires thorough analysis, zealous representation, and thoughtful strategy. It’s your home, let The Law Center help you defend it.

Contact Information

Bardia Fard

Attorney

The Law Center

(1) (312) 600-8815

info@lawcenterllc.com