Foreclosure in 60601>Question Details

D, Home Buyer in Chicago, IL

how do you buy bank owned property in Chicago?

Asked by D, Chicago, IL Thu Nov 8, 2007

Do you know a REO agent and how do you contact them.

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Hi D,

You've already been given great advice, so I'll just give you some links to banks' REO sites. Many banks have them; you can try Googling the bank's name + REO, and it will often pull up the site.

Before I provide the links, I want to say that you should take to heart what my fellow Trulians have told you about foreclosures. I know the "foreclosure frenzy" of right now has many people thinking they are going to strike it rich with bargains of the century, but a majority of the foreclosures right now are the result of adjusted ARMS and upside down mortgages. The banks are already holding loans that are larger than a property's market value, so getting them down to bargain prices won't always be the easiest thing to do.

Anyway, here are the bank links I have:…
2 votes Thank Flag Link Fri Nov 9, 2007
Websites like Realty Trac and provide the very latest foreclosure listings for those who are currently looking for a new home to buy that went through foreclosure proceedings. For a comprehensive list, read foreclosure website reviews on our site -
2 votes Thank Flag Link Tue Aug 18, 2015

Most foreclosures are in WORSE condition and have HIGHER list prices than equivalent motivated owner homes. This is why you should want to compare regular listings with Bank REO's. If you look only at Bank homes, you are likely to overpay
1 vote Thank Flag Link Sun Nov 18, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
Hi D.,

Lots of ways.

Many banks list their homes with Real Estate agents for sale. Lots of those properties DO make it into the MLS. Experienced agents know what brokerages specialize in the sale of bank owned properties. I know that I keep a prospecting search for properties that come on the market from these agencies so I can get quick notice of properties that come up for sale.

For example, the most recent property to catch my attention was a new listing that I received notice of this morning. It's a single family home in the West Loop - three beds with one bath - listed for $149,900. Before being taken back by the bank, this house was listed for $325,000. Could be a great deal if it's not in too bad condition.

A year ago, I sold a condo owned by Chase Bank to a home buyer in a well known high rise in Edgewater. This condo was purchased by a rehabber who ran out of money and couldn't make the payments on the condo. My client bought the condo for a nice discount and renovated it completely and he has a spectacular and comfortable home in a desirable lakefront location now.

These homes are not always a bargain, however. But careful examination of the listing data and a tour of the property will usually reveal a few diamonds in the rough. Do hire an experienced agent to guide you. A good agent will be able to sift through the mountains of data and suggest properties that represent good values as well as point out the pitfalls that may be present in other properties.

Keep in mind that the foreclosure process takes a long time. By the time a bank actually owns a property, it could have been neglected for many months. Some properties are in good condition, but others are waiting their date with the wrecking ball.

The process of bidding on a foreclosed home takes guidance and patience. Many levels of bureaucracy can be involved in the sale of a bank owned property. If you submit a bid on a property, the paperwork goes through a maze of bank departments and mid-level administrators before a decision can be made. It often takes weeks to hear about the status of an offer. These nerve-wracking waits are not for the faint of heart.

One last reference for the determined do it your selfer: Check out the Chicago Foreclosure Report at This website offers a web and magazine subsription to properties that are just entering the foreclosure process. You'll be doing all the legwork yourself, however. No experts are guiding you here, so be very careful. But if you can get a jump on a property before everyone else does, the effort could be worth it. Lots of Realtors read the foreclosure report, too, because it's a great prospecting tool. Properties listed in the Foreclosure Report are not yet bank owned and are often still in good condition. The owners usually still live in the properties. Smart sellers who are in financial trouble are wise to list their homes for sale with a broker at this stage in order to perhaps sell the property at full retail price.

Good luck hunting down your great deal!
Web Reference:
1 vote Thank Flag Link Fri Nov 9, 2007
There are a few agencies in the Chicagoland area that do nothing but foreclosures and REOs and do not list them in the MLS. However, when I learned that these are NOT good deals, I deleted my bookmarks and don't remember any of their names.

How a REO is listed actually depends more upon the bank that owns it. I went though a list of REOs about a year and a half ago and got phone numbers and a few websites of the different banks and Fannie Mae. If you would like my Excel spreadsheet on that, just email me and I'll send it to you. But as Ute said, don't limit yourself to REOs. You are better off finding a motivated seller listed through a Realtor.

Just click on the picture to link to my profile to email me if you would like.
Web Reference:
1 vote Thank Flag Link Thu Nov 8, 2007
Ruthless, Other/Just Looking in 60558
Hi D. I most parts of this country, banks list their REOs (real estate owned) with local real estate brokerages and they are marketed through the local MLS. I would get in contact with a real estate agent in your area and ask the agent to provide you with regularly updated lists of bank owned properties. Ask the agent to set you up with an automatic e-mail alert that will send you new REO listing information at least once a day. One word of caution. Do not limit your search to REO listings as they are not always the best deals. Many people think that REOs must be a bargain, but that's not so as many REOs are in need of repairs and banks try to get market value. Good luck to you.
Web Reference:
1 vote Thank Flag Link Thu Nov 8, 2007
Ute Ferdig -…, Real Estate Pro in New Castle, DE
I work for a Real Estate Broker that deals only in bank owned properties in the Chicagoland area, we currently have around 200 listings, I am responsible for giving opinions of value, and reports of recent sales and active properties on properties every day throughout the Chicagoland area, so I have a huge knowledge of the market, way more than most agents, because I actually get paid just to look at and report on the data. I recently realized I have this advantage so I'm looking to start making myself available as an "REO" Agent, I recently registered the web site currently under construction, depending on when you are reading this. You can contact me by clicking my name.
Web Reference:
0 votes Thank Flag Link Mon Oct 20, 2008
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