Home Buying in 60654>Question Details

dis111sid, Home Buyer in Chicago, IL

What is the average number of foreclosures in the buildings in River North?

Asked by dis111sid, Chicago, IL Fri Jan 18, 2013

Buying a non foreclosure condo in a building with 4% current foreclosures and 2% units behind on assessments with healthy reserves be a good buy? Owner occupancy of the building is about 45%.

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11
"averages" can be deceiving. A few years back 2-5% default in a building was common although today that number has been reduced by about 2/3 if not more in some buildings.

In a white-hot neighborhood like River North opportunities are being snatched up as fast as they hit the market, and often before.
0 votes Thank Flag Link Fri Dec 6, 2013
If your lender is willing to lend, it's probably OK.
0 votes Thank Flag Link Fri Sep 20, 2013
Every building is different so hard to really answer your question. If your buying into a high rise with a lot of units I would be worried if a few fell into foreclosure or people were late.

The higher the owner occupancy the better. Buildings tend to fall into the foreclosure area when the owner occupancy falls below 51% since buyers can not get loans and the building becomes cash only.
0 votes Thank Flag Link Thu Mar 21, 2013
Our Team | United Equity Mortgage Corp.
http://www.unitedequity.us/our-team.html15+ items – Wieslaw (Wesley) Jura Vice President. NMLS ID 225274 ...
Wieslaw (Wesley) Jura Vice President. NMLS ID 225274 773-304-3412
Paul Gondek Senior Loan Originator. NMLS ID 226276 773-304-3414
0 votes Thank Flag Link Wed Mar 20, 2013
Every building is different but you're wise to avoid potential issues by checking into percentages up front.

A good rule of thumb is- if your lender is ok with it you should be too. Lender's standards are still so tight that they're looking for reasons to deny your loan.

If they look through the financials of your building and give it their blessing then it's a safe bet in an overwhelming portion of situations.

Best,

Scott Newman
Newman Realty
0 votes Thank Flag Link Wed Mar 20, 2013
best to call Wesley for your best options with this one

http://www.unitedequity.us/our-team.htmlWieslaw (Wesley) Jura Vice President. NMLS ID 225274. Direct: 773-304-3412. Fax: 773-283-2788. Cell: 312-405-2404. wjura@unitedequity.us
0 votes Thank Flag Link Tue Jan 22, 2013
Many people have pointed out the possible lending problems. If you are buying as an owner occupant and putting 20% down, the loan should not be a problem. Aslong as there is a high rental ratio, the values will be held down.

All the best,

Ivan Sagel
312.515.7823
Ivan@atproperties.com
0 votes Thank Flag Link Sat Jan 19, 2013
Thanks for your reply.

Here I am refering to another American Invsco building 33 W Ontario. Being a first time buyer, I wanted another opinion on the health of the building.

I believe I should be able to manage a loan, but does low owner occupancy and number of foreclosures could affect the future valuation in some other way? I plan to convert this unit into an investment property few years down.
0 votes Thank Flag Link Sat Jan 19, 2013
I dont think there is an average, but 45% owner occupied will result in not being able to get a quality loan. You will have to get a portfolio loan. Those arent good.
0 votes Thank Flag Link Sat Jan 19, 2013
It depends on many factors like what the comps are for other units in the building and nearby area. Are the REO's within 6mo time frame? Those numbers are not bad except the owner occupancy and many lenders will not make loans, yet I can name other buidlings with much worse statistics that have been fantastic buys if you could get a loan or had cash........10 e Ontario/440 Wabash/345 Lasalle/400 Lasalle 1-3 yrs ago. What is the address of the building you are referring to??
0 votes Thank Flag Link Sat Jan 19, 2013
Thanks for your reply.

Here I am refering to another American Invsco building 33 W Ontario. Being a first time buyer, I wanted another opinion on the health of the building.

I believe I should be able to manage a loan, but does low owner occupancy and number of foreclosures could affect the future valuation in some other way? I plan to convert this unit into an investment property few years down.
Flag Sat Jan 19, 2013
It may be difficult to get financing in a building with < 50% of owner occupants.
0 votes Thank Flag Link Sat Jan 19, 2013
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