What Does the Chicago Foreclosure Market Look Like in the Midst of Covid-19?

As COVID-19 rates see a spike again, we are left with a lot of questions. Will this pandemic ever go away? If so, when? And what will the economy look like when that happens? 

No one can have a clear answer to any of these questions, and that makes these times very interesting for anyone looking to invest. While only you know how this pandemic impacts you and your assets directly, we can answer two common questions that many have been asking about the current foreclosure market for anyone looking to invest in real estate. 

Are there currently a lot of foreclosures on the market? 

Many families this year have felt significant financial pressures as people lost jobs and opportunities in the midst of this pandemic. However, because of different incentives and assistance offered during the most crucial times of this pandemic, there was not a significant amount of foreclosures. According to RealtyTrac, there was actually a significant decrease in the number of foreclosures this year, starting in April, which is where COVID-19 really hit its peak. Earlier this year, foreclosure numbers in the chicago-land area were up near the 800’s. However, in April, this number dropped down below 200. So, despite the current economic situation, the market for foreclosures is actually much lower than it was in a pre-COVID Chicago, and therefore, your selection may be limited in this area. 

How do interest rates impact the foreclosure market? 

Another way that this pandemic has impacted the real estate and foreclosure market is by the impact it has had on current interest rates. Throughout the majority of this pandemic, the interest rates have remained below 3.5%, which is a pretty rare occurrence otherwise. Many people who were not too impacted financially by COVID-19 saw these lower interest rates as an opportunity to buy a new home. However, many who were impacted financially by the pandemic also found benefits with these lower interest rates, as they were able to keep their current home by refinancing. Because of this option, they now have a lower monthly payment, and likely the opportunity to stay in a home that might have otherwise become a foreclosure.  

So is now the right time for you to invest in real estate? The true answer is that only you can know that. There is no clear idea on where things are going to go in the next few months. However, if you run the numbers and find that investing in a foreclosed home makes sense for you right now, we are happy to help. Contact Gurney Law Group today. Our attorneys have worked with a variety of foreclosure purchases over the years, including many in this current pandemic, and they will work diligently to help you navigate the legal logistics involved with the purchase. 

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