Property Q&A in Chicago>Question Details

Dippedin67, Home Buyer in Chicago, IL

Is it REALISTIC & WORTH THE EFFORT to make an offer on a REO in River Forest, IL for almost 80g< than the asking price?

Asked by Dippedin67, Chicago, IL Sat Jan 9, 2010


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Although I would normally agree with Mark's answer, in THIS case, I'm going to say "no." The reason being is that I looked for this property on the MLS and couldn't find it. (Granted, I'm a lender, not a Realtor, but if it ain't listed, it ain't listed.)

I'm thinking that you're using Trulia to search for foreclosed properties, and that is NOT a good idea. Get yourself a good buyer's agent and have them help you with your search. Trulia posts a lot of properties through RealtyTrac, which lists every property where a Lis Pendens (foreclosure proceeding) has been filed. These properties may or may not be for sale, because the owners have the legal right to try to save their property by bringing their debt up to date. This process could take about 11 months.

Only after every option has been exhausted is the home truly foreclosed upon, sold at a Sheriff's sale, and THEN offered by sale an REO. (So basically, the homes "listed" by Realty Trac actually show properties with a lis pendens and the recorded amount of their last mortgage, NOT a list price.) And if the previous owners trashed it on their way out and the bank is not willing to invest any money in the property by making it habitable, you may not be able to find the financing necessary to fix the place up.

I've looked at your profile and I see that you've been burned before. Once again, you need a good Buyer's Agent who knows what they're doing with short sales/foreclosures. It looks like you've been TRYING to find a deal for over six months, and with the Tax Credit deadline being only 3 months away, you really can't afford to spend months waiting for an answer and then having that answer be "No."

If you'd like a referral for a buyer's agent, let me know. If you're wondering what your financing options are (since they vary WILDLY on distressed properties) definitely give me a call.

Matt Bukovy
Sr. Mortgage Consultant
Wintrust Mortgage
3317 W. Irving Park Rd.
Chicago, IL 60618
Cell 773-416-7107
Phone 773-654-2498
eFax 773-409-5558
0 votes Thank Flag Link Sat Jan 9, 2010

I know that there has been some conflicting claims as to whether this property is listed or not, or has been sold or is still on the market.

According to the MLS, as of Jan 11, 2010, this property is not on the market. It was sold on Dec. 31 2009. Since it was a recent sale, it has probably not updated on Trulia or ReMax yet. Sorry if this is a disappointment.

As for you question, it can never hurt to make an offer so long as you are ready and willing to pay the amount, even if it is significantly less than the listing price. However, properties that are short sales or bank-owned (in foreclosure) will often take weeks or even months to accept or reject your offer, even if it is reasonable.

On this specific property, the banks would probably not have accepted an offer on $114,000 because there were multiple lenders with leins on the property far in excess of of that amount, so the secondary mortgages would not have accepted an amount that wouldn't repay the amount due to them.

If you are looking for great deals on foreclosures and short sales in Forest Park/Oak Park, that is one of my areas of expertise. Please give me a call and I can help you find the right home.

My services are free because the seller pays my commission, so don't hesitate to call.

Brendan Kottenstette
DMD Chicago Realty
Web Reference:
0 votes Thank Flag Link Mon Jan 11, 2010
I've only used trulia to ask questions and the property in question, is still on the market. I've found that Remax not is the best site with the most up to date info. Thanks much!
0 votes Thank Flag Link Sat Jan 9, 2010
This house sold last month. It was only on the market for 22 days. Trulia is a poor site to use.....too much out dated & incomplete information and it's not in 'real time'. Try or just about any web site from any mine, if you are not ready to work with an agent.
It's not so much the $$ amount under the list price, but the % below that matters and also how long the proeperty has been on the market and who the bank is and other things unique to the situation. There is no rule book on this. WIth the Internet it is sooooo easy to write up and submit an offer it really is not much of an effort for us agents.
0 votes Thank Flag Link Sat Jan 9, 2010
I would say it probably wont go through, but you have nothing to lose. The worst they can say is no!

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
0 votes Thank Flag Link Sat Jan 9, 2010
You should know that if in fact it is an REO (bank owned property) the bank has pretty much made up it's mind on what it wants (around 85% of fair market value) and, normally, room for negotiations is limited. However, like Mark pointed out the "worst" that can happen is they say NO, but more than likely they will counteroffer.

The wait/response time on an REO is not as long as that of a short sale (pre-foreclosure). REO's usually respond within weeks where a short sale takes upwards of 90 days+

I'm an accredited distressed property Realtor if you need further assistance feel free to contact me. Good luck!

Evelyn S. Fred
0 votes Thank Flag Link Sat Jan 9, 2010
Of course it is. All they can say is NO!
0 votes Thank Flag Link Sat Jan 9, 2010
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