RealtyTrac just released their February foreclosure activity report and it shows Chicago foreclosure activity for February down 18% from January. The decline was manifest in all 3 foreclosure stages tracked by RealtyTrac: default, auctions, and bank repossessions.
However, you have to look at this decline in the context of the historic variability of these numbers, which is huge. Chicago might still be in a general upward trend in foreclosure activity. Therefore, I wouldn't get too excited about this "decline". According to RealtyTrac Chicago is still #5 among the largest 20 metropolitan areas in the country.
RealtyTrac is still talking about the impact of various legal resolutions that are paving the way for a higher processing rate of backlogged foreclosures so they are anticipating higher foreclosure activity going forward.
If you are interested we maintain a page of on our Web site that contains this foreclosure data along with numerous other Chicago real estate market data all in one place.