How to Purchase a Foreclosure Property in Chicago

Buying a Chicago foreclosure can be a good investment.

In Chicago, foreclosed homes can be great investment opportunities. According to RealtyTrac, Chicago is a growing foreclosure market, with 134,704 foreclosure filings as of September 2010.

Locating an Area

Evaluate Chicago neighborhoods that entice you. It is important to narrow down your radius. Decide which area interests you the most. Some people prefer to be right in the heart of the city, while others prefer to stay away from the hustle and bustle. If you are new to Chicago, you may want to tour the area before deciding on a location.

Finding Foreclosures

There are several foreclosure purchasing options such as short sales, REO (real estate owned) properties and auctions. You can even consider locating loans in default. Some investors contact homeowners in default to negotiate buying the home before it is foreclosed. Others drive through neighborhoods looking for vacant homes or homes for sale by the owner.

Inspections

Hire an inspector. Banks usually want the foreclosure property to sell fast. In some cases, there is little time for an inspection. Buyers should not purchase a home without a proper inspection. Foreclosure properties are usually sold as-is. You would assume all responsibility for the home repairs once you sign the contract.

References

• RealtyTrac: Chicago Foreclosures
• Chicago Tribune: How to Buy Foreclosed Property

Resources

• Bank of America: Find a Bank-Owned Property