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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.

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Attention Developers, Investors huge opportunity to build 2x 8 unit buildings in hot Area, Vacant Land !!!!

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3052 Cicero Avenue, Chicago Illinois 60641


3052 Cicero Avenue, Chicago

Bank OWNED/FORECLOSED REO Three lots 75 X 125 totaling 9,375 square feet zoned B1-1 for retail stores with apartments formerly used for auto sales. High traffic hot Cice...

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8350 Kolin Avenue, Chicago Illinois 60652


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Wow!luxury remodel!!brick 5 bedrooms 2.5 baths w/gorgeous kitchen w/granite/ss double sink/ss appliances/beautiful hw floors/modern baths/huge full finished basement w/we...

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Chicago Illinois 60611




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11309 Talman Avenue, Chicago Illinois 60655


11309 Talman Avenue, Chicago

Wow!!! This home is gorgeous!! Please bring your buyers!! Beautifully decorated&tastefully updated through-out. 3 Brs 2 full, newly updated baths. All new kitchen feature...

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1414 75Th Street, Chicago Illinois 60619


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2029 Division Street Unit 3, Chicago Illinois 60622


2029 Division Street Unit 3, Chicago

Excellent Wicker Park location- Extra Wide 2 Bed 2Bath built in 2007. Cherry Hardwood Floors throughout, Gas Fireplace, Shaker Cabinets, Granite countertops, SS appliance...

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7938 Yates Boulevard, Chicago Illinois 60617


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Professionally remodeled large custom built raised ranch with master bedroom & bath, new roof (w/skylights and custom ceiling), windows, furnace, water tank, electric, d...

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7151 Paulina Street, Chicago Illinois 60636


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Well cared, legal brick 2 flat, w/formal living rm & dining rm & enclosed back porch on each flr. Nicely updated 3 bdrm apartment on 2nd flr, new windows & cabinets with ...

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4849 Linder Avenue, Chicago Illinois 60638


4849 Linder Avenue, Chicago

*New construction* all brick raised ranch featrs 3 bdrms & 2 full baths. Beautiful hardwood floors thruout mainlevel, open floorplan with soaring vaulted ceilings w/skyli...

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1703 Waseca Place, Chicago Illinois 60643


1703 Waseca Place, Chicago

This is a rear find nice frame bungalow on a double lot in chicago. This is a must see. 1703 & 1705 W waseca, we have two pin numbers

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1514 68Th Street Unit 2, Chicago Illinois 60637


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Opportunity knocks in Albany Park. Brick 2-flat with long-term tenants on the 1st floor. New roof & windows in 2014. Separate water heaters. Close to shopping, restaurant...

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233 13Th Street Unit 2208, Chicago Illinois 60605


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Highly upgraded 850 sq ft 1 bed + den. Spacious flr plan boasts kitchen w/ granite, SS apps, customized closet space, expanded bath w/large shower. Hardwood floors, wash...

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Top floor unit w/private sunny balcony! Hdwd flrs thru out this recently renovated unit w/exceptional finishes. Kitchen complete w/granite counters & SS appls. Den perfec...

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