BY MIKE CETERA
Aurora saw a nearly 73 percent increase in foreclosures in the first half of 2007 compared with the first half of 2006, the Sun-Times reports. In the city of Chicago, the foreclosure rate was 40 percent higher.
Among suburban communities, Aurora ranks 32 in the number of foreclosures per square mile. Overall, Aurora had 586 foreclosures during the first half of the year.
The Kane County community with the most foreclosures per square mile is Carpentersville, which ranks 19th overall among suburban towns, according to data from the National Training and Information Center.
Other communities:
* Elgin saw a 61.8 percent increase in foreclosures.
* North Aurora -- a 94.1 percent spike, from 17 to 33.
* Batavia -- a 70.4 percent spike, from 27 to 46.
* Sugar Grove -- a 214.3 percent increase, from 7 to 22.
* Montgomery -- a 100 percent increase, from 11 to 22.
The National Training and Information Center calls on Congress to enact reforms of the mortgage industry to protect homeowners from escalating interest rates. Read the group's full report here.
To me what is important is why are people being forclosed on. Are all these people overextended? Did they all lose their jobs? If you are employed and you have a fixed rate mortgage escalating interest rates shouldn't be a factor. If you purchased a mortgage that put your budget on the edge shame on you. You have to know that the cost of living fluctuates. Now if you purchased a mortgage with a variable rate to me that is like playing Russian Roulette. Once again if you took a variable rate mortgage you should have prepared for the worst case scenario. Without having statistics on the causes of the foreclosures it's difficult to comment on the government enacting more laws to protect citizens who shouldn't have to be protected if they relied more on common sense.
This recent wave of foreclosures is an incredible opportunity for investors. Owners typically don't love having renters live near them, but nobody likes to see abandoned homes on their street. It tends to invite all the wrong elements. Aggressive lenders allowed nearly everyone to buy a home or simply buy too much home. In 2005, it was more difficult to find solid tenants and it was harder to cash flow for investors. Prices and rates are falling simultaneously, which is rare. Investors need to take advantage of this opportunity. Rents are up, rates are down and prices are falling. Don't let this opportunity pass you buy. Maximize this opportunity and remember, occupied homes are better for the community than abandoned homes.