Despite positive results from the first quarter of 2010, McLean County foreclosure filings showed a depressing increase in the second quarter. Foreclosure filings rocketed up to 143 for the quarter – a full 83.3% increase over the same period in 2009. Looking at the first two quarters together, McLean County stands at 274 filings, higher than 2009 and just shy of 2008’s record total of 278 for the same period.

These results demonstrate the continued economic challenges persisting even as the country begins to flirt with economic recovery. As I have stated in the past, home foreclosures lag the overall economy in the sense that foreclosures follow job losses at a distance of some months. Foreclosures happening today are likely indicative of the job market from six to nine months in the past. Based on unemployment figures, I would expect to see a moderate-to-bad third quarter for foreclosures followed by a fairly-positive fourth. Overall, I predict that foreclosure filings will end 2010 just slightly below the 2009 figure.

Sources: McLean County Recorder’s Office, Bureau of Labor Statistics