Illinois foreclosures rise 29 percent in May

Associated Press

CHICAGO (AP) — Illinois home foreclosure activity rose 29 percent in May compared to the previous month and is 54 percent higher than May of 2011.

A report released Thursday by Irvine, Calif.-based RealtyTrac shows Illinois with 16,318 foreclosure filings last month. Filings include default notices, auction-sale notices and bank repossessions.

The filings represent one in every 325 housing units in the state, fifth highest nationally.

RealtyTrac says the jump signals a "bumpy ride" but that new foreclosure starts are likely to end up as short sales or auction sales rather than bank repossessions.

Georgia posted the nation's highest foreclosure rate. Other states with rates higher than Illinois are Arizona, Nevada and California.

Foreclosure rates in Chicago worsened to one in every 252 housing units, fourth-highest among the nation's 20 largest metro areas.