RealtyTrac just released their April foreclosure market report and the data for Chicago indicates a continuing declining trend in foreclosure activity. Despite the headlines that auction activity was up dramatically from the previous month and previous year as you can see in the graph below these numbers jump around an awful lot. In addition, if you look closely you'll see that the bank repossessions declined quite a bit in April, probably because the auction activity had been much lower in the last couple of months. In total the foreclosure activity actually continued its downward trend of the last few months.
Also of significance is the fact that Chicago's shadow inventory declined in the last month, down from 37,473 to 36,510 units. Obviously we still have a long way to go.