Foreclosure in Naperville>Question Details

Donald, Home Buyer in Naperville, IL

Is a severly upside down-soon to be bank owned property a lost cause?

Asked by Donald, Naperville, IL Sun Dec 21, 2008

I am hoping to purchase a house that is currently in pre-foreclosure in the Naperville area. The house is currently unoccupied and not yet completed. There are several loans/liens outstanding on the property and far more is owed on it than its current market value. I tried to negotiate a short sale thru a 3rd party that represented the owner, but the bank rejected the offer because there are so many apparently un-resolvable liens. I am told that the easiest path for the bank is to foreclose. I don’t see the property listed on the Dupage county Sherriff’s sale website yet. The lis pendens notice was filed a few months ago, but is there any way for a private home buyer to establish a foreclosure timeline on such a property? I am not in a hurry and willing to wait for the bank to foreclose, but what is the likelihood that I will get the house at a discounted rate given the outstanding debt situation? Are banks ever willing to negotiate prior to actually foreclosing? Should I move on?

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4
Dear Donald,

The timeline for the foreclosure process generally takes about a year or longer from the first missed payment. I have posted a picture of that timeline on my blog for you. Please let me know if you have any questions. Buying a home through a short sale or as a bank owned home can be trying it you don't have the right guidance. Make sure that you work with a buyer’s agent familiar with distressed homes that will be looking out for your best interest. Persistence is the key to getting those great deals.

Sincerely,

Bob Little Jr.
0 votes Thank Flag Link Mon Dec 22, 2008
Hi,

It can take time however this property may be worth the wait. If you want, I can watch this property for you. I also can provide a list of foreclosure/shortsales. Contact me @ 630-202-8189, rknapp9@hotmail.com or http://www.RichKnapp.com.

Thanks
Web Reference: http://www.RichKnapp.com
0 votes Thank Flag Link Mon Dec 22, 2008
Donald,

Absolutely not.......

There can be many reasons why a "short sale" does not work out. You have been introduced to why many buyers and agents are steering a wide circle around these transactions. multiple loans, liens, divorce, taxes etc.

It is very unlikely you will be able to make any progress with the bank prior to "foreclosure." If this is the home of your dreams, ou might try waiting until it goes into foreclosure. You may be able to purchase it for less than you would have with a short sale.

Our recommendation is to work with a local Naperville RE agent that has the capacity to inform you as soon as the property becomes public as a foreclosure. Your wait could be weeks or months..........
If this doesn't sound reasonable of appealing, our suggestion is to "move on."

Good luck & Happy Holidays
0 votes Thank Flag Link Mon Dec 22, 2008
A GOOD LIKELY.
BANKS WILL TAKE A LOSS ON A SHORT SALE.

THEY SURE DON'T MAKE OUT IF IT IS SOLD AT A SHERIFF'S SALE.
0 votes Thank Flag Link Mon Dec 22, 2008
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