Receive Chicago Foreclosures Daily via Email

Just click the sign up button on the right and once you set up a search we will set you up to receive properties the day they hit the market.

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

7403-05 Euclid Avenue, Chicago Illinois 60649

$210,000

7403-05 Euclid Avenue, Chicago

Incredible opportunity to own 6-unit brick building. Fully occupied! Huge dining rooms, nice size bedrooms, enclosed back porches and balconies! PROPERTY IS SOLD AS-IS/...

  • Beds
  • Baths
  • MLS 08760388

6900 Sheridan Road, Chicago Illinois 60626

$2,977,000

6900 Sheridan Road, Chicago

Luxury one of a kind brick and stone 6 residence historic building, completely gutted and rehabbed. Walking distance to lake michigan,loyola university, and northwestern ...

  • Beds
  • Baths
  • MLS 08759693

12551-53 State Street, Chicago Illinois 60628

$41,000

12551-53 State Street, Chicago

Attention builders! Two chicago vacant lots side by side to build two brand new single family homes! Seller is selling lots as a package or willing to sell each lot seper...

  • Beds
  • Baths
  • MLS 08760443

2447 Clybourn Avenue, Chicago Illinois 60614

$479,900

2447 Clybourn Avenue, Chicago

25 Foot wide and extra long 150 foot deep lot in highly desirable clybourn corridor.

  • Beds
  • Baths
  • MLS 08760376

1542 Augusta Boulevard, Chicago Illinois 60642

$454,999

1542 Augusta Boulevard, Chicago

None

  • Beds
  • Baths
  • MLS 08760139

2933 25Th Place, Chicago Illinois 60623

$4,500

2933 25Th Place, Chicago

VACANT LAND. PROPERTY SOLD IN AS IS CONDITION AND AS A VACANT LOT. PURCHASE IS SUBJECT TO HUD GUIDELINES 24 CFR 206.125 (see additional info for explanation)

  • Beds
  • Baths
  • MLS 08563313

1930 Hubbard Street, Chicago Illinois 60622

$2,195,000

1930 Hubbard Street, Chicago

40,600 sq ft land available on two stories in the West Town/Kinzie Corridor area. Property is ideal for any creative office user of light industrial warehousing/distribut...

  • Beds
  • Baths
  • MLS 08760022

$99,000

3308 Oriole Avenue, Chicago

Contractors opportunity! Needs extensive renovation! Large frame residence attached to original neighborhood storefront space. Cash offers only! Sold "as-is"

  • Beds
  • Baths
  • MLS 08759977

5634 Calumet Avenue, Chicago Illinois 60637

$21,000

5634 Calumet Avenue, Chicago

Double vacant lot ready for development. Lot is zoned rm-5. Developer's dream! Close to university of chicago, parks, & transportation. Please verify all data. This is a ...

  • Beds
  • Baths
  • MLS 08759849

6325 Marshfield Avenue, Chicago Illinois 60636

$10,999

6325 Marshfield Avenue, Chicago

Land right in the mix of renovation area. Near shopping, transportation, new housing and more coming up especially the new whole foods store.

  • Beds
  • Baths
  • MLS 08759607

849 Franklin Street Unit 406, Chicago Illinois 60610

$219,900

849 Franklin Street Unit 406, Chicago

Great Value in Convenient River North Location. Parc Chestnut Full Amenity Luxury Highrise. Monthly ASM Includes Everything Except Electric! Extra Clean 1BR/1BA w/Bright ...

  • Beds 1
  • Baths 1.0
  • MLS 08760462
  • Bldg. Parc Chestnut

Chicago Illinois 60637

$185,000

Chicago

Just a couple blocks from Cottage! Nice Block Great Professional Rehab Top To Bottom! Newer Kitchen Cabs, Counter tops, Sink, Faucets, GFI's & Ceramic Tile Back Splash! N...

  • Beds 6
  • Baths 3.0
  • MLS 08760460

3611 Sacramento Avenue, Chicago Illinois 60632

$155,000

3611 Sacramento Avenue, Chicago

Brighton Park single family. Total of 6 bedrooms, 2 baths, new a wood deck, new baths, new laminated hardwood floor, freshly painted. finsished attic, finished basement. ...

  • Beds 6
  • Baths 2.0
  • MLS 08760459

616 43Rd Place, Chicago Illinois 60609

$260,000

616 43Rd Place, Chicago

Transformed Rehabbed Bldg. Legal 2 Flat but 1st & 2nd Floors are all 1 unit, used as a Single Family Home. Basement can be related living or Rental. Zoning still legal...

  • Beds 7
  • Baths 3.0
  • MLS 08760457

10411 Forest Avenue, Chicago Illinois 60628

$145,000

10411 Forest Avenue, Chicago

None

  • Beds 3
  • Baths 1.1
  • MLS 08760418

Free Daily Email Updates

  • Automated home searches
  • Favorite properties
  • Email updates
  • And much more…