March Madness
Did you complete your brackets? As soon as March rolls around, it has become an annual tradition for many people to fill in their brackets for the NCAA Division 1 Men’s Basketball Championship, predicting which teams will advance through the rounds and eventually win the single-elimination tournament known as March Madness, one of the most popular sporting events in the United States.
March is also traditionally a popular month for prospective home buyers to start looking for condos or houses now, as people shake off the winter blahs and plan their next move. More teams than ever before were in the NCAA tournament when it began on March 15—68 to be exact, up from 64 and then 65 in recent years. Just eight teams were involved when the tournament started in 1939. Similarly, in many cities, there are more homes on the market than ever before too. This is due in part to a flood of foreclosed condos and other residential properties caused by the downturn in the economy since 2008, which resulted in a buyers’ market that can cause another form of March Madness, as people fret over what and when to buy.
But there is no need to stress out. OwnACondo.com Realtors® are well-equipped to guide you through the process of finding your dream home or investment property.
Just think, if you start your quest now, you just might find your ideal abode in time to celebrate March Madness in a big way. Who knows, if you win a bundle on the Final Four, you might take care of the home financing too—for a while, anyway.
Foreclosed Condos
As the number of foreclosures steadily increases, so do the opportunities to take advantage of the slumping housing market and to take the leap from renting to owning. Foreclosed condos are affordable investments that can provide you with the potential for return in your future. Now is the perfect time to purchase your own property instead of throwing all of your money away paying monthly rent.
If you have been stuck in the viscous cycle of renting for a number of years now is the time to break the cycle. Monthly rents are on the rise in order to accommodate a number of rising costs. Energy prices are steadily increasing and so are property taxes as cash strapped cities and villages that are running out of other options. With monthly rents on the rise, how much longer will you be able to afford the cost of living?
Instead of throwing your money away every month you could be applying your monthly payments towards your own property. The money that you spend every month will be recouped when you sell your property. Instead of merely paying a price to live somewhere, you will be investing in property that you will be able to sell for a profit in the future. If you purchase a foreclosed property that is selling below market value and you hang on to the condo for a couple of years until the real estate market improves, you will see a significant increase in value.
Foreclosed condos are selling well below market value. Banks are requiring low down payments in order to get rid of the properties. There are many incentives currently available for buyers. You may find that the monthly payments on foreclosed condos may be even cheaper than the monthly rent payments that you were making. There are also a number of tax incentives that are being offered to first time buyers and anyone that purchases a personal residence.
With the high number of these condos available you can even be selective in which unit that you choose. Many complexes have several condo units that are being foreclosed on and you will be able to find a condo that has the number of baths and bedrooms that you would like. Many of the condos are new construction or have recently been remodeled. It is a complete fallacy that foreclosed condos are in a state of disrepair or are old and dilapidated.
Foreclosed Condos in Chicago
Foreclosed condos in Chicago are at an all-time high. There are so many foreclosures going on nationally that banks are having a tough time keeping up with everything. To get involved with buying these investment condos it's best to start out with a real estate agent that knows how to handle the foreclosure process.
The statistics on foreclosures in Chicago, whether for condos or homes is just staggering. There were over one million, five hundred thousand reported foreclosures nationally so far for 2009. We're only a little past half way. The numbers are overwhelming for banks.  Illinois had the eighth most foreclosures so far in 2009 nationally.  Nevada was first followed by Arizona as number two.
So how do you buy a foreclosed condo? There are numerous ways to get involved in the process. You can buy online courses, go to seminars and auction houses, but as I stated earlier, one of the best avenues, is to go to a real estate agent that specializes in foreclosures. There are a number of them out there and they can narrow down the properties that are ready to be liquidated now with very little hassle. They normally will be paid by the bank so their services are free to the buyer.
What's the difference between a short sale condo and a foreclosed condo? The short sale is a condo that is in a delinquency state. The seller usually is behind a few payments and the bank has decided to sell the condo short of the amount of the loan. It's really a crazy time when you see a bank allow a sale of a unit's mortgage and lose money, but the bank is losing so much more if they let it go into a foreclosure state where they end up taking over. The banks are not in the business of managing property When they take a foreclosure property over, they now have to manage it. They have to renovate it and either put a tenant in it or try to sell it. The longer it sits on the market, the more money they're losing.
The foreclosed condo game in Chicago is big right now. The numbers keep rising. If you're looking to get into it, now is certainly the time to start the process. Have we hit the peak yet for foreclosures in Chicago? They're talking about next year at this time, but what do they know?
Foreclosed Condos
Foreclosed condos seem to be the trend in today’s market place. Can you own a condo after being foreclosed on? How do you buy a condo foreclosure? If you’re being foreclosed on, who do you turn to?
Let’s start with the people that are being foreclosed on today. Foreclosed condos are popping up everywhere. The banks have certain guidelines and when the line in the sand is drawn and you pass that point, they begin the foreclosure process. If you’re behind on your mortgage payments, the first thing you’ll need to do is talk to your finance person. A banker or mortgage broker will help you with all your initial questions. The process to be foreclosed on is relatively extensive. Depending on the bank or institution, it can take as little as six months all the way to two years to be foreclosed on.
The normal situation if you fall behind on your payments, is to start with counseling at the lending institution. The lender will suggest a few things, but they normally give you some time if they see that there is a chance for you to get out of your situation. If the length of time continues and you still cannot pay your monthly mortgage payment, the next step is called the workout department. The workout department will normally be another advisor and they will be the last resort before going into a foreclosure mode.
The foreclosed condo from a bank’s perspective is not good. They do not want this product in they’re portfolio. They are in the business to finance real estate, not manage real estate. The foreclosed condo to a bank is an eye sore. It’s not good on their books and they do not want to handle it once they’ve taken it over, so they are going to try to do everything in their power to work with you.
In the end, you’re still going to have to find a way to pay for the mortgage. There are real estate investors out there that may consider loaning you part of the money in return for part of the equity in the property. If they see a nice return, you can stay in the condo and they can have you as a manager of the condo because you live in it. It’s a win-win scenario for both properties and you find a way of not being another foreclosure statistic.
Chicago Foreclosures
Chicago foreclosures are everywhere. How has this all happened? The foreclosures have doubled every year for the last three years and it doesn’t seem to be getting better. How can you take advantages of all the foreclosures in Chicago right now?
It starts with the owner of the real estate not paying his or her mortgage. As time goes on eventually the owner has to abandon to premises and the bank takes the property back. The bank tries to sell the property through an auction. This is where you or your real estate agent can take advantage of spectacular deals. The Realtor will have all the information you’ll need on the foreclosures going on in today’s market place. They’ll show you through the various methods for obtaining a condo through the foreclosure process.
Once you’ve identified the piece of real estate, the Chicago foreclosures you’d like to bid on, you’ll need to make sure you can finance the real estate. There are several financing firms that specialize in real estate. If you are focused on townhouses or condos, you can go to FinanceACondo.com and get a number of financing institutions that can help this process. Once you get the OK from a bank, the next step is to make your auction bid. The bid is an interesting experience. If you bid too high, you pay too much. If you bid too low, you don’t get the property you want. It all comes down to your due diligence and your needs. If you go through and analyze all the properties that are available and look through the sold properties that compare to your subject property, this will help you immensely. The second part of the equation is how bad do you want or need this property. If you don’t need to live in it right away and can wait, make offers that are extremely low. You never know when or if they’ll be accepted, but if they do, you may have one of the best investments you’ve ever made.
Once you own the Chicago foreclosure, who do you choose to manage the property. There are a number of real estate management specialists out there. RE Management is Chicago based and can help with all types of real estate management. If you plan on managing the Chicago foreclosure on your own, make sure you get yourself a good attorney to go over all aspects of property management. There are so many parts to consider when managing real estate, that in the end, it’s great to have the right advice from an attorney.
Foreclosed Condos
Foreclosed condos seem to be the rage and for very good reason. The opportunities to buy a Chicago condo, New York condo, Miami condo or Los Angeles condo have never been better than now. The prices have dropped so dramatically that it almost feels as if someone is giving them away. It’s absolutely crazy right now.
Foreclosed condos can be purchased many ways. The best way is to go to a realtor that specializes in condos. A condo realtor will have several choices in many areas and price ranges. The first thing you need to figure out is how to finance the condo. Once you’ve figured out the amount down you can afford and have a good idea on how to finance the condo, the choices are overwhelming. Foreclosed condos are usually auctioned off first and if they do not get sold on the first round, they go back to the bank that foreclosed on them. Many realtors have access to the banks inventory of foreclosed condos allowing them to sell a portion of their condo inventory.
There are several companies in today’s market place that specialize in selling lists of foreclosed condos. Be careful that you can get all the detailed information on the list or the list is really not worth it. Many of these foreclosed lists are more teasers than anything else. As recommended earlier, one of the best sources is going to a real estate firm that knows what they are doing when it comes to foreclosures. There a re thousands of foreclosures in the last twelve months and many more coming. The news is not getting better and the inventory is mounting. We’re expecting to see double the amount of foreclosed condos in 2009 that we had in 2008. And that number was doubled in 2008 from 2007.Â
When will the volume of foreclosed condos end? Only time will tell. Until then it’s time to go on a shopping spree. There are hundreds to choose from in just about any area of the country that you’re in. Chicago condos, New York condos, LA condos or Miami condos, studio condos, penthouse condos or your simple two bedroom condo are all in the group. The list is endless along with the price range. If you have cash right now, you are king.Â
Make sure to insure the condo once you buy. The more investment condos you buy today, the richer you will be five years from now. In twenty-five years of being in the real estate business, I’ve never seen a better time to buy.
