SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s numbers ain’t good, either

Thursday, Jan 9, 2014

* AP

A new report says almost one-third of Illinois homes are “deeply underwater” meaning that they’re worth at least 25 percent less than what’s owed on the loans.

The report released today by Irvine, Calif.-based RealtyTrac says that represents almost 775,000 Illinois homes. The report is based on data from December.

Only Nevada and Florida fare worse, with 38 percent and 34 percent of homes deeply underwater, respectively.

Ugh.

Perhaps less talk about cartoon characters and more action on the economy is in order, governor.

- Posted by Rich Miller        


15 Comments
  1. - wordslinger - Thursday, Jan 9, 14 @ 11:50 am:

    Here’s a link to a Forbes map of underwater mortgages around the country.

    http://www.forbes.com/sites/erincarlyle/2013/12/17/6-4-million-still-have-underwater-mortgages-as-of-q3-2013-says-corelogic/

    Check out the deep blue in Texas. Though it may seem counter-intuitive, the state has some of the toughest laws in the country regarding predatory and home equity loans.

    In Illinois, they were passing out refis and home equity loans over the phone, without even an inspection.

    In Texas, those strict regulations helped protect homeowners from the ravages of the bubble.

    http://www.nytimes.com/2012/05/26/business/texas-lending-law-shielded-many-homeowners-from-housing-bust.html?_r=0


  2. - Excessively Rabid - Thursday, Jan 9, 14 @ 11:55 am:

    A third of Illinois homes? That doesn’t sound plausible. A third of mortgages, maybe.


  3. - Wensicia - Thursday, Jan 9, 14 @ 12:07 pm:

    The value of my house has reduced 38% since 2008. I’m grateful the loan was paid off before this crash, but it’s still trending down with each yearly assessment.


  4. - Cook County Commoner - Thursday, Jan 9, 14 @ 12:17 pm:

    A trend that would be interesting to see is the credit levels in home equity lines of credit for those that didn’t get caught in the bubble, especially for the Cook County area. A before and after property tax payment view could be informative as to whether those with equity are drawing against it and at what rate.


  5. - Formerly Known As... - Thursday, Jan 9, 14 @ 12:28 pm:

    This is sad news.

    This also bodes ill for property tax collections in the near future.


  6. - Pot calling kettle - Thursday, Jan 9, 14 @ 12:46 pm:

    I went to RealtyTrac’s web site and the trends are good. Compared to a year ago, preforeclosures are down 34%, auctions are down 54%, and bank owned are down 43%.

    http://www.realtytrac.com/statsandtrends/foreclosuretrends/il


  7. - thechampaignlife - Thursday, Jan 9, 14 @ 1:08 pm:

    According to Census data (http://quickfacts.census.gov/qfd/states/17000.html), there are 5.3M housing units in Illinois and 68% of those are owner-occupied (3.6M). 775K deeply underwater is 22% of owner-occupied homes and 15% of all housing units so that 33% figure has to be just for mortgages. Still, not good but on the bright side, those figures suggest that 1.3M own a home with no mortgage.


  8. - Loop Lady - Thursday, Jan 9, 14 @ 1:11 pm:

    Rich, it is patently unfair to only call out the Governor on this issue…he should be part of the solution, but is not singularly responsible for it…c’mon…


  9. - OneMan - Thursday, Jan 9, 14 @ 1:16 pm:

    Wordslinger….

    Thanks to something that happened back when it was the Republic Of Texas the Texas state constitution made home equity loans illegal until it was amended in the 90’s…


  10. - ChaiseLounge - Thursday, Jan 9, 14 @ 1:29 pm:

    I don’t argue home values are low, but breaking down RealtyTrac’s reporters is trivial. Look at their numbers for foreclosures, then look at the raw number of chancery cases at a county clerk’s office or even county POPULATION numbers that exist for those same years and it will become clear that RealtyTrac’s numbers are balderdash. A responsible reporter can’t even call them rough estimates. I’ve called them to talk about this and they have no explanation for why their numbers don’t align (even remotely) with counties’ own. They’re a business that thrives on scare tactics and has made a living the last eight years sending inaccurate and melodramatic numbers and analysis to the AP and other newswires. Please stop citing RealtyTrac, people. They’re a crock. If you don’t believe me, it’d be worth your time to verify their numbers with your clerk’s office (and possible reviewing hundreds of cases by hand, like the old days) and see for yourself.


  11. - Federalist - Thursday, Jan 9, 14 @ 1:50 pm:

    Wensicia - Thursday, Jan 9, 14 @ 12:07 pm:

    The value of my house has reduced 38% since 2008

    Has your assessed valuation dropped by 38% or anything even close?

    We have the same issue in downstate rural Illinois
    but the assessed valuations are rarely if ever reduced.

    But no politician at the state or local level will even begin to investigate and analyze this issue.


  12. - Formerly Known As... - Thursday, Jan 9, 14 @ 2:29 pm:

    === Please stop citing RealtyTrac, people. They’re a crock. ===

    The RealtyTrac numbers are close to the CoreLogic numbers reported in 2013.

    Either they’re both in on the conspiracy, or both their numbers are fairly accurate.

    Then again, this is Illinois. Maybe the county numbers and our record-keeping are the numbers that are off.


  13. - Judgment Day - Thursday, Jan 9, 14 @ 2:50 pm:

    “This also bodes ill for property tax collections in the near future.”

    No, local property tax collections will probably do just fine. But property owners, not so much. As taxable values of the properties decrease (and they are), the tax RATES (in property tax cap counties - which is most of Northern IL) are skyrocketing. We are seeing all sorts of places where tax rates are now well in excess of $9.00 per $100 of taxable value.

    Btw, a tax rate of $9.00 per $100 of taxable value translates into an effective tax rate of 3 percent of the market value of your property.

    Basic formula is:
    Step 1: (Assessed value - exemptions (if any)) = taxable value.
    Step 2: (Tax rate / 100) = millage rate
    Step 3: Taxable value x Millage Rate = *Property tax bill amount.

    * = Calculations change if property is located in a TIF District, Enterprise Zone, or Special Service Area.

    But the short story is that IF you are in a tax capped county and your assessed value decreases because your house is worth less, your tax rate increases so the tax capped local tax districts get the same amount of money requested as they got last year. And maybe a slight increase on top of that.


  14. - Judgment Day - Thursday, Jan 9, 14 @ 3:04 pm:

    “I went to RealtyTrac’s web site and the trends are good. Compared to a year ago, preforeclosures are down 34%, auctions are down 54%, and bank owned are down 43%.”

    Well, they’re ‘better’, but not really. I’m certainly no defender of the ‘crooked, lying, thieving banksters’, but in this case, they’re caught in a storm and they have no real out.

    The report doesn’t really address the ‘elephant in the room’, which is that the banks really can’t afford to take all those non-performing loans back onto their books. They don’t dare, because then they would actually start to have to ‘mark to market’ on all the ‘failed’ mortgages that have been issued since the early 2000’s, and taking THAT step has consequences nobody anywhere (including the fed’s) want to get anywhere near.

    If the banks are forced to take this stuff back onto their books, imagine what it does to their capital base if they have to take an average 20% reduction on all mortgages being carried on their books, or worse, having been packaged and sold to the fed’s.

    The numbers are down, because they simply can’t be allowed to go up.


  15. - Wensicia - Thursday, Jan 9, 14 @ 4:10 pm:

    ==Has your assessed valuation dropped by 38% or anything even close?==

    Yes. I live in Waukegan.


Sorry, comments for this post are now closed.


* Quinn, Rauner head downstate
* SUBSCRIBERS ONLY - HRO responds to Proft
* Emptying out my in-box
* Vast Majority of Illinois Voters Support Renewable Energy, Energy Efficiency
* Inducement or just a party?
* Question of the day
* UPDATE: $580 MILLION EXELON RATE HIKE?? Do They Really Need a Bailout After Making Nearly $1 BILLION In The Last 90 Days?
* Very late Rauner oppo
* *** UPDATED x2 *** And speaking of abortion...
* GOP defends Rauner on "employer-provided birth control"
* SUBSCRIBERS ONLY - Friday morning fundraising report
* It's not anything new, but that doesn't make it Kosher
* Polling averages, models, projections, etc.
* Today's number: $3.5 million
* Rauner makes "Top 10" robocall list
* SUBSCRIBERS ONLY - Cable TV buy report and a spending update
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Battleheart Legacy signals Mika Mobile’s return to Android
        * Smash Champs lets you become a legendary trainer
        * Poynt pad tries to be all-in-one payment system for business
        * Truedialer app helps you manage contacts and calls
        * An app a day helps a teacher stay sane: How your iPad can keep kids on track
        * Underworld: Drug Lords updated with police chases
        * Trent Reznor’s Apple Special Project Is In “The World” Of Music Delivery

        * This Video Explains Four Psychological Terms You May Be Misusing
        * See How Much Candy You or Your Kids Should Eat with This Calculator
        * Late to the party, Amazon finally publishes its diversity numbers
        * 5 top social media campaigns of 2014
        * Craft a Better Presentation with Zombie Apocalypse Principles
        * New Docker release helps users avoid the Poodle bug
        * Reboot Your iPhone Before Being Detained by Police to Disable Touch ID

        * White Sox opt to decline Paulino's '15 option
        * White Sox have flexibility to pursue multiple upgrades
        * White Sox offseason plan roundup: Third base
        * Minnie Miñoso belongs in the Hall of Fame
        * Development of young core in '15 can define Chicago's future
        * Abreu leads White Sox GIBBY hopefuls with five noms
        * Allen, Wills among new faces on Hall's Golden Era ballot


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * How to Get a Government Job in Gov. Pat Quinn's.....
        * After murder suspect is caught, a sigh of relief..
        * Illinois governor's race still a close call..
        * Illinois contributes $10M more to I-74 bridge..


        * Woman charged with defrauding Illinois couple
        * Quinn, Rauner talk jobs, early voting Friday
        * Judge won't close hearing in Islamic State case
        * Cook County Jail guard faces theft charge
        * Sun-Times owner sells suburban papers to Tribune
        * Chicagoan sentenced for robbing, beating 78-yr-old
        * Sun-Times owner sells suburban papers to Tribune
        * Former Northwestern researcher settles fraud suit
        * Off-duty Chicago police officer beaten, robbed
        * AbbVie hikes forecast, tops Street expectations

        * Former Gov. Edgar to campaign with Rauner
        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Inmate freed from Jacksonville prison in landmark Illinois case
        * Cross opposes income tax hike extension
        * Gay marriage, abortion issues take back seat in governor’s race
        * Madigan’s office seeks clarifications from former Topinka nonprofit
        * Cross says no to income tax hike extension, sales tax on services
        * Gay marriage, abortion issues take backseat in governor’s race
        * Illinois inmate freed in landmark capital punishment case
        * Rauner says women will decide governor's race

        * SEC examines Caterpillar's accounting for Bucyrus
        * Cubs hire Maddon as manager, fire Renteria
        * A stormy Lake Michigan swamps Lake Shore Drive – and sinks Chicago's mood
        * A stormy Lake Michigan swamps Lake Shore Drive — and sinks Chicago's mood
        * Chicago Marathon champion fails doping test, agent says


        * Garcia: I'm a serious mayoral candidate, not just a protest vote
        * A higher standard of criminal justice
        * Ex-Northwestern doctor to pay $475K to settle fraud claims
        * Sad day  when  Catholic  schools  close
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Durbin, Oberweis square off for final time
        * State’s attorney investigating alderman’s prize offer to voters
        * Face it: Animator has found a great way to pass time on his commute
        * Refund those unfair yellow-light tickets


        * Cops release photos in robbery and attack of police sergeant
        * Cops warn of armed robberies at South Side businesses
        * Mom, 3 kids killed in crash heading to Halloween parade
        * Doctor in indecency case can open door to trick-or-treaters
        * Widow of officer killed in crash speaks out for first time
        * Snow showers, temperatures in 30s for Halloween night
        * Rough waves on lake closes floating haunted house at Navy Pier
        * Defendant held on $500K bail after Maywood court judge attacked
        * Cook County Sheriff: Man missing near south suburban forest preserve
        * Workers' comp claim against Bears complicates Avellini DUI case


        * Cook County posting indigent burials in 'virtual cemetery'
        * Whom do you trust when it comes to nutrition advice?
        * Zombie barge sinking in storm at Navy Pier
        * The digital afterlife
        * Making Buildings Healthier From The Inside Out
        * Scary Story: Planes By Ted Morrissey
        * Listen to State Week - October 31, 2014
        * "Monster Mash" Celebrates Halloween With Classical Music
        * The difficulties of getting voters invested and informed about elections
        * The Study Guide: Top issues in the candidates' own words


        * Former Gov. Edgar to campaign with Rauner
        * Esther Cepeda: Elizabeth Pena: Trailblazer on the big screen
        * Andy Shaw: Voter turnout instrumental to reform
        * Ty Fahner: What if the Court rejects pension reform?
        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Quote of the Day: Friday, Oct. 31
        * Inmate freed from Jacksonville prison in landmark Illinois case
        * Cross opposes income tax hike extension
        * Gay marriage, abortion issues take back seat in governor’s race
        * Illinois inmate freed in landmark capital punishment case


        * Halloween events
        * With McClintock project finished, city looks to fix Prairie Avenue
        * Road closure in Williamson County
        * Illinois weather summary 10-31-14
        * Cubs hire Maddon as manager, fire Renteria
        * PHOTOS: Reptile Program at Muffley School
        * Local home sales remain consistent amid falling foreclosure rate
        * Mother, three children die after she drove around rail crossing
        * Boil order lifted for residents in Carbondale
        * One confirmed dead in Beardstown


        * Michigan athletic director resigns
        * Cubs make it official: Rick Renteria out, Joe Maddon in
        * Giants players mug for crowd during parade
        * Iowa to host Northwestern in pivotal league matchup
        * O'Toole leads 1 upset for Illini, hopes for a 2nd

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Jeanne Shaheen says Scott Brown voted to r......
        * Jeanne Shaheen says Scott Brown voted to r......
        * Jeanne Shaheen says Scott Brown voted to r......
        * Oberweis gearing up to take on Durbin in m......
        * Quinn, Rahm thank Safe Passage workers...

        * Sen. Mark Kirk questioned by Triton students...
        * If Republicans Take Senate, Why It Won’t Last...

        * Report: Higher Minimum Wage Would Help One-in-Five Illinois Kids
        * The Beachwood Radio Sports Hour #24: The Maddoning Is Happening
        * Evelyn Sanguinetti
        * Surviving The In-Laws At Thanksgiving
        * EXTRA: The Curse of Rick Renteria?
        * Windy Wavy Weather
        * Increasing number of college students support post-birth abortion, infanticide
        * Rock Island Clerk says early voting issues are attempts to suppress voting
        * Chicago Chavez Voting Machines
        * Lake County sets new early voting record for mid-term elections


        * Editorial: Governors, raining taxpayer $ on Illinois
        * Governor Quinn and Mayor Emanuel Thank New Safe Passage Workers - Nearly 700 Additional Workers Hired This Year to Serve 133 Schools, 69,000 Students Across the City
        * Editorial: Rauner best choice as governor to begin to reverse Illinois’ fortunes
        * Quinn to celebrate Rauner’s UI Labs accomplishment
        * Another Democrat Runs Away From Pat Quinn




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller