Homes for under $10,000!

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A recent purchase is great to the buyer but bad news for the lender.

On October 2006, someone buys a home for $100,000 and takes on a mortgage of about $95,000.  The buyer cannot afford the payments and the home goes into foreclosure.  So far this is pretty normal.  You don’t pay you lose.  Ok.

Well the bank now owns the home and wants to sell it.  But it is not worth anywhere near the $95,000 that is owed on it.  So the bank lists it with a local real estate agent and hopes for the best.  Now a new buyer looking for a great deal comes along and offers a low ball offer of around $5,000.

You’d think the bank would just laugh and say, “no thanks.”  Instead they counter and end up settling for $8,000!  No, not $80,000, just a mere $8,000!  Now that’s a bargain!

So a great success story for our new buyer and the bank got a little money back right?  Not so fast.  Because of prior issues with the property, the city of Chicago had placed leins on the property totally thousands.  This is the seller’s problem or in this case the banks problem.

So the bank agrees to sell the property for an incredible low price of $8,000 and has to pay off the old liens on the property.  The end result is the bank not only recieves nothing but has to pay over $1,200 to sell the property.

Figure about $5,000 in attorneys fees to foreclose in the first place and the $1,200 they paid out to sell the house, it would have been better just to let the old owners keep it!

So it’s a great time to be buying!  Homes for under $10,000 in the Chicagoland area are commonplace.  So if your looking for a home for yourself or a great investment, check out the available properties that are on the MLS.  You can view them on our website or by clicking on www.illinoisrates.com/mls.