Illinois or as it is also referred to "Land of Lincoln" represents to many The Windy City of Chicago and little else. Chicago may be the third most populated city in America but Illinois is a far more diversified state than might be expected. Beyond Chicago, from the capital of Springfield to Peoria, Aurora, Rockford or anywhere in the great state of Illinios homes have been foreclosed on in greater numbers than even the great depression. Foreclosed homes dot the landscape sometimes in clusters around a particular part of the cities that make up the state or into the rich farm land that spread across the southern plains.
Since the mortgage crisis beginning in 2007 and the global financial meltdown that soon followed the people of Illinois have been hit among the hardest in the country. Currently the state ranks 6th overall for number of foreclosures per housing unit. Places such as Cook County, DeKalb County, Kane County, Lake County have all been hit especially hard through lending practices that are still being investigated by numerous legal divisions.
Adding to the number of foreclosed homes is the unemployment numbers in Illinois where they rank in the Top 10 for the entire nation. Since 65% of all the residents of the state live in or around the Chicago metropolitan area it is no wonder that the majority of all foreclosures are in fact located there. Yet no corner of the entire state of Illinois is free from the ravages of an economic global collapse and the mortgage meltdown that preceded it.
From Joliet to Naperville, Champagne-Urbana to the Bloomington-Normal metro area, all have seen the effects of the homes that have gone to foreclosure and what it can do to a neighborhood. Even though Illinois has an economy that is extremely diverse the global financial meltdown has affected Illinois through the very homes they live in.
With interests in agriculture, manufacturing, higher education, Medical Services, financial services, Coal, Wind, Nuclear energies and bio fuels Illinois would seem to be insulated from the ravaging of its real estate market.
The Sub-prime mortgage market was what did Illinois in financially. And the real estate market will most likely be what leads Illinois out of the recession that it currently experiences. Signs of the downside of sub-prime mortgages started showing up as a spike in foreclosures in 2006 and had become a full fledged epidemic by 2008 in the normally consistent state more known for its Chicago Bulls than its financial problems.
Today, no city or suburb of Illinois is free of the affliction of foreclosures. So what do you do if your house is not going to foreclosure? You should be buying foreclosure homes that are on the market (after doing the proper research to be sure that you will make a profit).
Foreclosures are in no short supply in Illinois even though the economy of the state appears to one of the most diverse in the nation. Illinois gross state product is greater than many entire nations at $634 Billion dollars annually. This $634 billion statistic combined with other indicators of financial stability show that Illinois will recover from the real estate recession sooner than most states.
Illinois is the most populace state in the Midwest and ranks #5 in the entire nation for total population and 12th for density of population. These two statistics indicate that there is still a lot of building that can be done in Illinois outside the Chicago metropolitan area. Regardless of the underlying strength of Illinois financially the state was decimated by an over abundance of sub-prime mortgages and this has caused a foreclosure ranking nationally of #6 overall.
All of these stats figures and hypothesis are not meant to make the reader concenered for Illinois or take pity on the people that live there and want to own their own home. To the contrary, these statistics are meant to illustrate the great opportunity that Illinois provides to the savvy real estate investor or home buyer that is capable of making smart fast decisions. Illinois is the very definition of "Buy low, Sell high" it is the meaning of the word opportunity.
When buying a foreclosure it is important to consider the employment situation in the particular area. For example buying a foreclosure on the south side of Chicago may prove problematic as the unemployment there is more than double the national average. Therefore your qualified buying or renting population is greatly reduced. The wise investor will look to homes in Dupage County, DeKalb County, Kane County, Kankakee County, Lake County, LaSalle County, Macon County, Madison County, Marion County, McHenry County, McLean County, Peoria County, Sangamon County, Will County and others. The savvy investor does not lock their search to a small corner of any one area. It is best to know the area that you are buying but this does not mean that you cannot learn about new areas around the primary focus.
Illinois has hundreds of little towns that offer foreclosure buying opportunities, it is the resale of the foreclosure home that must be taken into consideration as stated 65% of all Illinois residents live in the Chicago metro area while the state has the 12th highest population density in the nation. This indicates that the population is not evenly spread and that veering away from major population hubs could prove to be fatal to an investor.
With the size of the state of Illinois, ranking 25th largest state in the nation it is little wonder that the state also has the 18th highest household income of all US states at $41,400. This once again spells opportunity as the potential buying pool is much more capable of qualifying for a mortgage especially under the current restrictions being placed on qualifications as a result and possible over reaction to the mortgage crisis.
Regardless of the number of foreclosures Illinois offers smart Real Estate investors the opportunity of a life time as the number of potential buyers has not diminished greatly and there is an abundance of foreclosed homes at reduced prices that can be taken advantage of.
Population data is very important when it comes to making a purchase of a home, be it a foreclosure or not. You must have someone that wants to either buy it from you or rent it from you in the future. With a Real Estate investor the word future can mean later the same day as with an owner occupant "future" could mean 3 to 5 years. Either way, if you are buying a foreclosure in Illinois, anywhere in Illinois the population of the area must be taken into consideration. High population means a better chance for a quick and profitable sale. As long as that population is gainfully employed the foreclosure buyer is making a safe investment. The more rural the home the lesser the chances of getting the quick sale that can mean all the difference, especially in a troubled economy.
