//-->
The fall of property prices in Chicago has largely been attributed to the rise of foreclosures in Chicago. With stern measures being taken by the government to control the ongoing crisis, this is being viewed as a good period to buy a home.
Before a house is foreclosed upon, the home owner is given time to, both try and sell the home, or to take care of the non-payment on the loan. If neither of these happens, the home is foreclosed on and is put up for sale at a publicly notified auction.
In cases where homes do not sell at the auctions, their deeds are transferred to the lenders with whom the mortgages are placed. This is when the home becomes a Real Estate Owned property. Also referred to as REO properties, these homes are owned by lenders, and are known to sell at substantial discounts.
Since this is being looked upon as a good time to buy a home, there are good chances that the home you wish to buy, also has other interested home buyers vying for it. The possibility of numerous offers being made on a single home increase all the more when the price listed by the lender is lesser than the property’s valued market price.
For homes that are in good condition and are being sold cheaply, getting ten to fifteen offers is not uncommon. In these situations, banks can either accept the best offer amongst the initially received offers, or alternatively ask two or three buyers to resubmit their final offers, before making a decision.
In cases of multiple offers, the listing price of the home holds little significance. In multiple offer scenarios, you should always keep in mind, the home’s valued market price. Where the listing price is lesser than the valued price, almost all the offers made would exceed the listing price. Following comparable sales figures in neighborhoods you are interested in, is a good idea. This would give you a clearer picture of how much the home would actually be worth.
Going through a buyer’s agent is suggested, and in a large number of the cases, the lender pays the fees for the buyer’s agent. So while the agent would get paid by the lender, he/she would actually be working for you.
Various lenders/banks are known to approach the selling process in different ways. While some hire real estate firms to handle their selling, some others do it themselves. In both cases, the decisive power stays with the lender.
If handled correctly, a bank foreclosed home can be a great opportunity for you to buy a home. Remember, discounts are the norm.
