However, with sales volume declining rapidly, there are fewer houses to be used as comparison to determine the market value for houses in foreclosure listings.

As of January 2009, new homes sales dipped to a 45-year low while sales of existing homes declined to a lowest level in 12 years.

The difficulty of appraising houses in foreclosure listings has made it hard for distressed homeowners to refinance and buyers to acquire homes.

Because appraisals are based on market value estimates at given time, a reliable baseline is hard to determine with prices of distressed properties in foreclosure listings falling rapidly.

Miller Samuel President Jonathan Miller pointed out that credible home values are hard to determine and closed sales are becoming irrelevant because they are lagging behind the market.

Some real estate appraisers who cannot use good sales figures opted to consider contract prices when appraising homes, especially those in foreclosures. These contract prices are the amount first agreed between the seller and the buyer. However, there may be flaws on this way of appraisal because many sales do not close.

According to Miller, foreclosure listings prices are not reliable because majority of sellers overvalued their properties.

This tendency of sellers to overestimate the market value of their properties is called by Eric Johnson, a Columbia business professor, as endowment effect. This so-called endowment effect causes homeowners to overprice their properties, and as a result, a big discrepancy between the sale price and list price is created.

With foreclosures wreaking havoc on the housing market and more and more homeowners finding difficulty refinancing their mortgages or buying a new home, appraisers are feeling the pressure to be conservative on their estimates.

Real estate appraiser Joni Herndon explained that lenders prefer appraisals to be at the lowest end of the price range.

In the event that lenders reject the appraisal, they can call for a second appraisal, or the seller can reduce the price of the property or the buyer could produce more cash.

Another appraisal option is automated valuation model that sets home values using a mathematical formula.

Finding the right appraisal is deemed important now that the federal government has unveiled its Homeowner Affordability and Stability Plan which offers refinancing and loan modification plans.

Appraisal of Properties in Foreclosure Listings is a post from: Listings Foreclosures

The state of Illinois already has programs that are helping borrowers who are part of the Illinois Foreclosure Listings.

FHASecure, the program run by the Federal Housing Administration has seen around 15,000 home owners from Illinois refinancing through them. This program lets home owners with good credit, who are expecting their interest rates to rise to refinance their loans. Borrowers who have ended up missing on even one of their payments do not qualify. Last month, the Department of Housing and Urban Development issued a ruling, which would allow into the program, borrowers with bad credit too. Only lenders who have been approved by the government can pass FHA loans.

Homeowners Assistance Initiative which began in February is along the lines of FHASecure, set up by the state of Illinois with a pledge by 8 lenders to generate three hundred and ten million dollars in FHA re-finances. Since inception about twelve refinances have gone through or are about to very soon. About 12 others who approached for help had loans with a lender who was part of the 8 who were in the program, and the terms of the loans were modified making them comparatively affordable.

Five of the lenders in the program are based out of Chicago. They are Townstone Financial Inc., Professional Mortgage Inc., Chicago Bancorp, Perl Mortgage and Guaranteed Rate. The Alliance Credit Union in Rockford, the National Bank of Commerce, 1st Advantage Mortgage LLC and Berkeley make up the remainder of the eight.

The Neighborhood Assistance Corp. of America, a non profit organization, works with borrowers and lenders to set up revised payment plans or modifying terms of the loans. Their Chicago office conducts workshops twice a month, attracting close to six hundred local homeowners.
For working on new loan terms, attending the work shops is a must.

Start your search for Illinois Foreclosure Listings by Top Cities:

• Chicago Foreclosure Listings
• Rockford Foreclosure Listings
• Springfield Foreclosure Listings

Illinois Foreclosure Listings – Local Help Helps is a post from: Listings Foreclosures

With increasing number of Illinois homeowners facing various stages of foreclosure, the Illinois foreclosure listings are looking more and more attractive to potential buyers and investors. In June this year, the state saw more than 8,150 homes finding themselves facing the gloomy prospect of a roofless existence. This figure indicates a rise of 41.7% from June last year, but a decline of 15.6% from May this year. The situation at the national level showed no sign of a slowdown. Foreclosure listings in Illinois and other states have been exploding what with the foreclosure activity growing every day. A marginal respite was experienced when the foreclosure filings rate fell by 3% from the previous month but jumped 53% from June last year.

As more and more people file for foreclosure, there is a perceptible gloom everywhere and some of the homeowners hit by foreclosures are those who have either lost their job, or facing some other form of financial crisis that has prevented them from keeping up with their payments. More foreclosures in Illinois mean more fodder for Illinois foreclosure listings and a higher ranking for the state on the national level for foreclosure filings. Illinois currently ranks on the #13 spot for the highest number of foreclosure filings in the U.S.

The states have been directed by the federal government to take all measures necessary to make things easier for borrowers to pay back their loans. And this effort seems to be working for Illinois foreclosure listings have seen lesser number of homes being foreclosed. And, if experts are to be believed, this year will find 2.5million homeowners entering the foreclosure process, which is an increase of around 1.5 million from last year.

Rising Number Of Illinois Foreclosures Leading To Stacked Illinois Foreclosure Listings is a post from: Listings Foreclosures