Despite the fact that RealtyTrac just released their August Foreclosure Market Report showing a 24% increase in foreclosure activity in Chicago from July it's probably not as bad as it seems. As you can see from the more than 2 years of foreclosure activity in the graph below, fluctuations of this magnitude are not that unusual. Besides, activity in 2011 remains below 2009 and 2010 levels for the most part.
Nevertheless, this "significant" increase was pretty typical across the country and the folks at RealtyTrac offered this explanation:
"The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems," said James Saccacio, chief executive officer of RealtyTrac. “It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process.”