Know Before You Buy: Chicago Real Estate Foreclosures

July 01, 2011

Buying a home for the first time is an exciting, yet stressful time. For families moving on to their second or third home, the process may not be quite as demanding. However, even for Chicagoland real estate veterans, buying that first foreclosure can bring those “first-time” feelings rushing back. Whether you plan to buy a home that is already in foreclosure or has been repossessed by the bank (REO or “real estate owned” property), here are some things you may not know:

Does the home you’re looking at need repairs? Normally, you might be able to negotiate with the homeowner to pay for the repairs or reduce the price of the home. However, if you’re dealing with a bank, getting a better deal is highly unlikely. Also, you cannot put a financial contingency on a foreclosure.

A recent post on the

Equifax Personal Finance Blog by Ilyce Glink ecplains some of the other major differences in buying foreclosures.

In “

Buying an REO or Foreclosure: What You Can Expect and What Can Kill the Deal,” Glink reveals that attitude is one of the major discrepancies between buying from a homeowner and purchasing a foreclosure. Negotiating with a homeowner who is emotionally invested in the sale is a bit tricky. They naturally want to make money off the sale in order to support themselves or family. Offering too little for a home may be seen as offensive.

On the other hand, banks are not emotionally invested in the properties they sell. They simply want to minimize losses. Don’t expect any favors or helping hands when dealing with banks and foreclosures.

To learn about more differences, read the full post on the

Equifax Personal Finance Blog. Have you purchased REO properties before? What was your experience like?

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

Leave a Comment