How does purchasing a Chicago Fastrack Demo building work?

Joseph
Home Buyer
60622

Does the city sell these properties in lieu of destroying them?

Answers (1)
Karin Robison
Broker
Gurnee, IL
FIRST ANSWER

Joseph: the city doesn't own these properties--in most if not all cases they are bank-owned foreclosures. The city, whether Chicago or any other city with such a program, contacts the owner in writing who is vested on the deed as well as the lender, advising them of pending demo action. Oftentimes, there is a communications disconnect until this correspondence reaches the right bank department that handles city violations, and that's how many end up on the Fastrack list in the first place--the original violations are not addressed promptly and the city escalates the matter.

If a property is not yet on the MLS, which is usually the case with Fastrack properties (the agent who receives the listing checks with the city for violations, especially if the property was not secured properly prior, which is the red flag that brings the city into the equation in the first place), it can be difficult for a buyer to determine how to contact the proper party.

My best suggestion is to work with an experienced REO agent who has resources at hand to find that party before it is listed, whether it's the servicer or the foreclosure attorney. Consumers can subscribe to websites and get the attorney info on their own, but in the end still needs to purchase with an agent, even if it's the list agent and not their own buyer's agent. Also, there is no cost savings to doing it on your own, so finding the right agent for you will the most streamlined way to get the info you seek.

Hope this helps!

Sun Jul 12 2009, 07:53

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