Recent foreclosure activity reveals a bifurcated trend, with residential foreclosures continuing to decline while commercial foreclosures are on the rise, reflecting divergent pressures in the housing and commercial real estate sectors.

Residential Foreclosure Activity is Decreasing

ATTOM, a leading provider of real estate data, recently published data revealing a 2% decrease in residential foreclosures from the previous quarter and 13% decrease year-over-year. Residential foreclosures remain at a historical low, with a total of 62,380 properties beginning the foreclosure process in Q3 2024. Among the fifty states, Illinois had the highest number of foreclosure starts in Q3.

Commercial Foreclosure Activity is Increasing

In contrast, commercial foreclosures have seen a significant spike, staying well above pre-pandemic levels. After a notable rise starting in June 2023, commercial foreclosures peaked at 752 in May 2024 and recently settled at 695 in September 2024, indicating ongoing stress in the commercial real estate market and shifts in underlying economic conditions.

What does this mean?

The divide between the residential and commercial real estate sectors has become more and more pronounced since the pandemic began, and it remains to be seen whether the strain in one market will have any significant impact on the other in the long term.

Regardless of whether one is facing a residential or commercial forecosure, there are options. At The Law Center, we are a team of specialists that are passionate and up to date about the foreclosure process from start to finish and helping businesses and owners at the highest level. Our staff and attorneys approach each client and each property as a new challenge, one that requires thorough analysis, zealous representation, and thoughtful strategy. It’s your investment, let The Law Center help you defend it.

Call us now and speak with a foreclosure expert on how you can make the foreclosure process work for you -- not against you. (312) 600-8815

‍