Monday, March 31, 2008

Lenders optimistic about Chicago market rebound

There is a good article on the front page of the Chicago Tribune today about foreclosures.
It seems that lenders are looking at the Chicago market with optimism, which is a good sign. Below is a excerpt. For the full article, click here.

Lenders who take full possession of foreclosed assets, with all the attendant costs, probably are betting the housing economy is poised to improve.

"In some cities that have low property values, where there are dense concentrations of foreclosures, you see lenders who file foreclosure proceedings but don't actually take control of the properties, because the lenders have to maintain them and pay taxes on them," he said.

"There are areas in some parts of the country where property values are quite low, and there are no large-scale expectations of them going up. They don't know that they will ever recoup those costs," and so the lenders never re-take title to the properties, allowing them to become derelict, Smith said.

"If my scenario is true, it means there's some optimism about the future of the Chicago real estate market," he said.

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