Buying Foreclosures in Chicago
Many homebuyers turn to foreclosures as an option when they’re looking to saving money on their home purchase. If you’re a savvy homebuyer who wants to find Chicago real estate at a reasonable price, you should consider looking at Chicago foreclosures, which are often listed at prices that are lower than other homes.
Types of Foreclosures
What is a foreclosure? Well, when an home owner is unable to make mortgage payments on a home for an extended period of time, then the lender will take legal measures to foreclose your home in order to recover the remaining balance that the homeowner still owes. There are several stages of foreclosure process and methods of sale for a foreclosure that you should become familiar with.
Homes that are in the pre-foreclosure phase haven’t been repossessed by the bank or mortgage company just yet. You may be able to find an excellent pre-foreclosure deal from a seller who wants to get rid of the home before the bank reclaims ownership of it. In these cases the purchaser usually takes over the old mortgage and becomes responsible for any previously owed payments the old owner may have accrued.
If a home gets far enough along the foreclosure process, the lender may put it up for auction. However, the process of buying Chicago foreclosures at an auction is somewhat risky, so this method of purchase is usually only recommended for investors, rather than people who want to buy a home as their primary residence. What's more you need to pay cash upfront in order to purchase a home at an auction.
Many homebuyers will purchase foreclosures after the mortgage lender or bank has taken ownership of the property. Lenders often want to sell foreclosures quickly, so they typically price them competitively, giving homebuyers the chance to secure great bargains.
Other Foreclosure Considerations
If you’re looking into Chicago foreclosures, you should keep in mind that the negotiation process for these homes can sometimes be more complicated and involved than the negotiation process for traditional home purchases. It’s best to work with a real estate agent who can not only help you locate property, but who can also guide you through the negotiations process.
When you set out to find Chicago real estate that has gone through the foreclosure process, keep in mind that you may find homes that are priced well but that have sustained some damage or that haven’t been properly maintained by the previous owner. While you should always get an inspection regardless of what type of home you’re looking to buy, this step is especially important if you’re purchasing a Chicago foreclosure.
Purchasing a foreclosed property doesn't have to be a challenging task. Being knowledgeable about the foreclosure process and working with an experienced agent can set you on the right path to find Chicago real estate at great prices.