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Illinois is one among many states that are planning legislation in response to the rising number of defaults associated with subprime mortgages. With tens of thousands of Illinoisans poised to lose their homes in the collapse of the subprime mortgage industry, Illinois Attorney General Lisa Madigan called for a coordinated statewide effort to assist homeowners facing foreclosure and curb abuses in the mortgage lending industry.

"We are in a crisis of potentially large proportions," said Madigan, noting that foreclosure filings statewide jumped 55 percent in 2006, totaling 72,455, and are projected to spike even higher in 2007. "As the outlook for many Illinois homeowners turns grim, it is critical that everyone with a stake in the problem – state and local government, lenders, regulators and housing advocates – come together now to implement solutions."

Madigan said she would spearhead a statewide strategy that includes working with State Rep. Dan Burke to pass legislation to enhance protections for homeowners who are already – or soon-to-be –in foreclosure and to impose duties on mortgage lenders and brokers to ensure future borrowers have the ability to repay their loans and keep their homes. Additionally, Madigan will convene two statewide "summits," one to develop a blueprint for expanding financial assistance for homeowners trapped in bad loans, the other to coordinate legal assistance resources for homeowners in distress. Madigan is working with Burke to introduce the legislation during the current session and plans to convene the two summits this spring and summer.

The incidence of subprime refinance lending in Illinois and the surrounding region is higher than the national average. Nationwide, one in four refinance loans made in 2005 was subprime, according to the Consumer Federation of America, a watchdog and policy group that tracks mortgage lending trends. By comparison, in the Midwest, subprime loans accounted for nearly one third (32.1 percent) of refinances originated that year. The numbers in some Illinois communities are even more unsettling.

In Peoria, for example, subprime loans made up 45.4 percent of the refinancings done in 2005.

According to IAR's latest report, total home sales (single-family and condos) were up 36.2 percent in March 2007 to 11,979 homes sold compared to 8,792 homes sold in February 2007.

Sales were 20.3 percent below the all-time high for March of 15,024 homes sold in March 2006. The Illinois median home price was $198,000, up 0.1 percent from $197,900 a year earlier.

“In March we experienced the usual jump into the spring season with sales up well over February but we’re definitely in a market that is still finding its legs. The severe weather in February and March certainly took a toll on housing activity in Illinois,” said IAR President Robert Zoretich. Read more.

The Real Estate Journal.com says: "These are tough times for home sellers. If you're one of them, it can be tempting to launch into a series of home renovations to make your home more desirable."

But be discerning about your choices -- certain renovations can actually decrease the value of your home. Money magazine suggests avoiding these four renovations at all costs:

1. A swimming pool. If you don't know this already, a swimming pool is a liability, not an asset. (Unless you live in a hot climate; in the Southwest, a pool can increase a home's value by 11%.) But if your home is in Oregon or Illinois, the cost of insurance and pool maintenance is a buyer turn-off. Families with small children especially avoid homes with pools.

2. Home addition. Sure, an addition to your home will add inside space. But how will it look from the outside? Many home additions can look boxy or unnatural with the rest of the house. If you do go for an addition, make sure it is well designed.

3. Trendy finishes. Don't fall for the latest style or trend when it comes to renovating. As soon as it's out of style, it will stick out -- and look bad. One trend that will probably last for a while is custom paneling in maple or mahogany for home appliances. Otherwise, stick to timeless, classic renovations.

4. A Jacuzzi. Nothing beats a good soak after a long day. But not everyone loves a giant tub with multiple jets. Instead, try a rain showerhead if you want to add some luxury to a bathroom