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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

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$59,900

530 Bowen Avenue, Chicago

Great opportunity! Residential lot available in the bronzeville area. One of several lots available for sale! Permits issued or in progress. Architectural plans can be pu...

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  • MLS 08792595

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$59,900

535 41St Street, Chicago

Great opportunity! Residential lot available in the bronzeville area. One of several lots available for sale! Permits issued or in progress. Architectural plans can be pu...

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  • MLS 08792578

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$29,000

4240 St Lawrence Avenue, Chicago

Development opportunity, great location, close to highways, Lake Michigan and train station. Motivated Seller! New Construction SF Home sold next door for $380K June 201...

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  • MLS 08792577

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$59,900

610 41St Street, Chicago

Great opportunity! Residential lot available in the bronzeville area. One of several lots available for sale! Permits issued or in progress. Architectural plans can be pu...

  • Beds
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  • MLS 08792569

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$59,900

612 41St Street, Chicago

Great opportunity! Residential lot available in the bronzeville area. One of several lots available for sale! Permits issued or in progress. Architectural plans can be pu...

  • Beds
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  • MLS 08792558

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$59,900

616 41St Street, Chicago

Great opportunity! Residential lot available in the bronzeville area. One of several lots available for sale! Permits issued or in progress. Architectural plans can be pu...

  • Beds
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  • MLS 08792541

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$59,900

616 43Rd Street, Chicago

Great opportunity! Residential lot available in the bronzeville area. One of several lots available for sale! Permits issued or in progress. Architectural plans can be pu...

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  • MLS 08792532

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$250,000

1523 Fairfield Avenue, Chicago

Perfect RT4.5 lot ready to be developed. Lot is vacant, nothing to tear down. New construction all around. Ideal location only 2 blocks from the new Chicago 606 Bloomin...

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  • MLS 08792439

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$50,000

Chicago

Beautifully renovated townhouse. Brand new appliances, ss refrigerator & stove. Custom mocha cabinets w/granite countertops & back splash. New hardwood floors, windows, w...

  • Beds 2
  • Baths 1.1
  • MLS 08792875

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$59,900

9327 Wallace Street, Chicago

Great opportunity to own a modern 3 bedroom, 1 1/2 bath in Washington Heights! Hardwood floors in main areas, ceramic tile in kitchen and lower level. Located on nice blo...

  • Beds 3
  • Baths 1.1
  • MLS 08792864

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$559,000

2626 Wayne Avenue Unit FRONT, Chicago

Sunny & bright front unit brick town home on tree-lined lincoln park street. 3 Bedroom plus nursery/library/office. Hdwd flrs, wood-burning fireplace, newer maple / grani...

  • Beds 3
  • Baths 2.0
  • MLS 08792863

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$420,000

845 Kingsbury Street Unit 615, Chicago

Great Opportunity for River North beautifullyl maintained 2bd/2ba w/full ofc/dining rm unit offering dramatic eastern city views. Great split bedrm floorplan w/oversized...

  • Beds 2
  • Baths 2.0
  • MLS 08792859

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$89,900

2020 69Th Place, Chicago

Newly rehabbed 2 unit duplex up/down available now! 1st fl has 2 beds/1 bath lower level has 3 addt'l rms/1 full bath. 2nd fl has 2 beds/1 bath upper level has 2 addt'l b...

  • Beds 6
  • Baths 3.0
  • MLS 08792849

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$410,000

3016 Troy Street, Chicago

Outstanding property invites your offer!! This is a Live/Rent opportunity rarely seen. MUST SEE!! Regular Sale!!!

  • Beds 10
  • Baths 3.0
  • MLS 08792840

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$69,900

11446 Wentworth Avenue, Chicago

Lovely Vintage Home in excellent condition. Hardwood floors on both levels with modern kitchen & formal dining room. "Clean, clean, clean and rooms a plenty". Credit a...

  • Beds 4
  • Baths 2.0
  • MLS 08792837

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