Chicago Bank Foreclosures – A Dream Opportunity for First Time Home Buyers
Data from the final quarter of 2008 indicates a 120% increase in nationwide foreclosure activity as compared to a year earlier. More than a quarter of a million homes across the US have been filed with some type of foreclosure activity. With figures like these, it is scarcely a surprise and more and more people are getting interested in the real estate market.
Although the number of Chicago bank foreclosures are not as high as some other states such as California, Nevada or Florida, it is still at a remarkably high, judging by historical levels. Lenders in the area eager to dispose of the foreclosed homes, which has led to a saturated market where buyers can dictate terms. It has been years, perhaps a decade, since the real estate market in the Cleveland area was a buyer’s market. Banks and other mortgage lenders are prepared to mark down foreclosed property by up to 60% in some cases, just to be rid of the property. First time home buyers and real estate investors alike are stepping up to take advantage of this rare opportunity.
In fact, experts estimate that about 60%-80% of foreclosed property are purchased by real estate investors looking to rent out the property or to resell it for a profit. Particularly, purchasing the houses at a significant discount to market price, investing a little money to rehab and renovate the house and then reselling it for a handsome is becoming more and more attractive to house flippers. A number of professional house flippers make a living this way. However, if you are considering flipping houses, you must be aware that the costs involved in repairing a house and bringing it up to the standard required by city inspectors can be quite steep. Banks and other lenders usually spend very little by way of repairing and upgrading foreclosed homes, so it is necessary to have some cash on hand before you can make money flipping houses.
For home buyers, there is a trade-off between the cost of repairing a house and the cost of acquisition. Houses that need only minor work done, will obviously be priced higher than houses that are in bad repair. In either case, foreclosed properties are usually priced below market value, so they are a great bargain whether or not they need a lot of subsequent repair work.
Banks are keen on moving the foreclosed properties and they are priced to be sold within 30 to 60 days. Properties that have been on the market for a longer duration can be bought for an even better deal. Lenders of a property that has failed to find a buyer for 150 days or more, are likely to be extremely aggressive in selling it.
Bank foreclosures are an ideal choice for first time home buyers or for cautious buyers willing to invest in some minor repairs. Any homeowner will tell you that no home is perfect, whether you purchase a brand new home or build your own. Foreclosed houses are no different. If you are a little flexible about the condition of the house and the amount of repair work needed, the Chicago foreclosure market can help you buy your dream house at a great bargain.
Illinois Bank Foreclosures by Top Cities
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