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Stages of Forclosure

Pre-Foreclosure (short sale): There are some fantastic opportunities to purchase properties under market value prior to them going into foreclosure. A home owner that is headed into foreclosure may elect to sell the property prior to the bank or government forcing the issue.

Sounds like a good idea but what happens if similar homes in the area are selling for $200,000 and the seller owes $275,000 to the bank to clear the mortgage? A short sale is where the home owner gets the bank to forgive part of the mortgage in order to enable the sale to go through. 

Why would the bank do this? It costs them a lot of money to sell a home through the foreclosure process. If they believe that the homeowner will default on the mortgage anyway and it makes financial sense the bank will proceed with a short sale. We can help you navigate this process. If you have questions please call us at 708-434-1165.

Auction: The next stage of a foreclosure is an auction. The bank does not own the property but it is forcing the property to be sold so that it can recoup some of the money that they are owed. There are some additional challenges to buying real estate this way. 

The first is that here in the Chicago land area they require 25% of the total purchase price at the auction followed by the rest within 72 hours (or something close to this).  So really you need cash to buy these homes. 

The second issue is that the buyer is responsible for all liens (past taxes, mechanics liens, code violations, etc) associated with the property whether they are disclosed or not.  Additionally and more importantly if the property is occupied then the responsibility to evict lies with the new owner.  Because of the way the laws are written this process can take a year or longer in cases when the squatter knows how to plays the eviction game in court to his or her advantage.

Foreclosure (bank owned, REO): If the property does not sell at auction then the bank takes possession.  They evict anyone living in the property. They clean up outstanding liens and they put the home on the market looking to sell it quickly (30-45 days). The bank does not want to be a landlord.  They want to unload the home so they price it to sell. Of the 3 stages I have listed this is probably the easiest one for the average buyer to complete a purchase.

Newest Real Estate Listings

9121 Cottage Grove Avenue, Chicago Illinois 60619

$575,000

9121 Cottage Grove Avenue, Chicago

Very solid 11-Unit Building (all two-bed/one-bath). Continuously improved. Part of a three-building (38-unit total) portfolio. Will sell as a package or individually.

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5436 West Ferdinand Street, Chicago Illinois 60644

$419,000

5436 West Ferdinand Street, Chicago

None

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9117 Cottage Grove Avenue, Chicago Illinois 60619

$495,000

9117 Cottage Grove Avenue, Chicago

Very solid 11-Unit Building (all two-bed/one-bath). Continuously improved. Part of a three-building (38-unit total) portfolio. Will sell as a package or individually.

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1475-79 Huron Street, Chicago Illinois 60642

$5,099,999

1475-79 Huron Street, Chicago

Attention investors - sold in combination with 1453 w huron & 2501 n kimball *completely rehabbed! *Dishwashers *hdwd flrs* ss appl* granite countertops* located minutes ...

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6046 Giddings Street, Chicago Illinois 60630

$735,000

6046 Giddings Street, Chicago

This six unit building features high quality finishes with stainless steel appliances, granite counter tops and laundry in building. Tucked away on a beautiful tree lined...

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8204 Drexel Avenue, Chicago Illinois 60619

$625,000

8204 Drexel Avenue, Chicago

3 Story Corner Walk-up Building consisting of 16-units (9-one/one, 5-two/one & 2-three/one). Continuously improved and great curb appeal. Part of a three-building (38-uni...

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432 83Rd Street, Chicago Illinois 60619

$320,000

432 83Rd Street, Chicago

fully occupied 8 unit six 2 bedroom two 1 bedroom

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4179 Lowe Avenue, Chicago Illinois 60609

$1,499,000

4179 Lowe Avenue, Chicago

Gorgeous 8,500 square foot mansion. 4 floors of ultimate luxury. Open Kitchen / Living space featuring Brazilian cherry floors throughout. Chef's kitchen including viking...

  • Beds 6
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4826 Dorchester Avenue Unit 2W, Chicago Illinois 60615

$184,999

4826 Dorchester Avenue Unit 2W, Chicago

Beautiful! Bright, 3 bed/2 bath vintage condo, spacious entry, crown molding, brand new french doors, fireplace, resurfaced hdwd floors, new maple flooring in the dining ...

  • Beds 3
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4760 Shields Avenue, Chicago Illinois 60609

$9,900

4760 Shields Avenue, Chicago

Lot of potential - to fix up or tear down and build your dream home. Cash offers only.

  • Beds 4
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22 South West Seeley Avenue, Chicago Illinois 60612

$199,900

22 South West Seeley Avenue, Chicago

Attention developers ,a chance to own this spacious two flat,in prime locatoin one block from the united center. Never again worry about finding parking for the games,par...

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2323 Fullerton Avenue, Chicago

C1-2 zoning. Incredible potential. Condo conversion with a lower retail storefront. All brick 3 flat fully rented! Rents are below market for the area. So much potential ...

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2921 Glenlake Avenue Unit 4W, Chicago Illinois 60659

$289,900

2921 Glenlake Avenue Unit 4W, Chicago

Stunning penthouse w/ high end finishes throughout huge 2200sq.ft. sunny open floor plan condo. Floor to ceiling stone fireplace w/ bamboo hrdwd floors. Access to large c...

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7200 Lafayette Avenue, Chicago Illinois 60621

$15,000

7200 Lafayette Avenue, Chicago

Short Sale - Perfect starter home, nice brick bungalow comes w 2 bdrms plus a bonus den, 1.5 bths with full fin bsmnt, hardwood flrs throughout, nice sized yard for famil...

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1000 53Rd Street Unit 205, Chicago Illinois 60615

$189,000

1000 53Rd Street Unit 205, Chicago

Beautifully renovated soft loft at Renaissance Place features brand NEW SS appliances, NEW granite countertops, and NEW dark wood laminate floors throughout. Split floor...

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