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Foreclosures Heat Up Cold November

For those with a wandering eye, they may have caught sight of the foreclosure market heating up as the temperatures drop.  Yes, in areas like Chicago and the suburbs, temperatures are quite chilly.  Yet for those who buy investment real estate, invest in foreclosures, acquire short sales or bank-owned properties, and in general focus on distressed real estate, the temperature is definitely rising as activity is increasing.  In the past month, there has been a resurgence in activity in the foreclosure sales of real estate in Cook County, Lake County, DuPage County, Will County, McHenry County, Kane County and Kendall County.  Likely this trend has continued across the state of Illinois, but information from Cherry Picker Investments only tracks Northeast Illinois activity.

"We have seen a number of our clients identify and acquire excellent real estate properties so far this month and based on their feedback, we expect this to continue," said Bardan Azari of Cherry Picker Investments.

Already in November, the activity, as measured by the number of properties going to auction, has seen a significant rise and is not forecasted to change between now and the of the year.  Additionally, banks are already preparing their balance sheets for year-end reporting both for the financial markets and the FDIC.

"Should be some very interesting opportunities for serious rehabbers, developers, investors and flippers," said Bardan Azari.

Michael Hobbs, November 11, 2011

 

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November starts out with a Bang! Great news for investors!

According to Northern Illinois Foreclosure Listing Service (NIFLS), a top rated foreclosure reporting service, 12 properties were purchased on November 1st by 3rd party bidders in Cook, Lake and Dupage counties alone. Cherry Picker Investments, LLC clients were among them! The below is a list of the properties sold, the zillow estimate, the balance due on the mortgages that were foreclosed upon, and the purchase price at the respective auction.

4444 S. Washtenaw Chicago, IL 60632     Balance due: $177,000              Zestimate: $ 90,300    Winning Bid: $ 17,050

1542 N. Laramie Chicago, IL 60651           Balance due: $225,239             Zestimate: $134,000   Winning Bid: $ 30,100

2107 S. Austin Cicero, IL 60804               Balance due: $218,724             Zestimate: $108,100    Winning Bid: $ 60,001

6151 S. Kolin Chicago, IL 60629               Balance due: $212,528             Zestimate: $129,600    Winning Bid: $ 69,200

6049 N. Talman Chicago, IL 60659           Balance due: $136,951             Zestimate:  $ n/a          Winning Bid: $ 29,467

222 Timbercrest Dr, Schaumburg, IL 60193 Balance due: $319,374           Zestimate: $278,200    Winning Bid: $180,500

230 Rainier Way Fox Lake, IL 60020         Balance due: $109,504             Zestimate: $138,500    Winning Bid: $ 70,525

4334 N. Albany Chicago, IL 60618            Balance due: $284,827            Zestimate: $292,700   Winning Bid: $161,501

568 Fairview #2i Wheeling, IL 60090        Balance due: $ 88,843             Zestimate:  $ 78,900     Winning Bid: $ 14,818

309 Bridgewater Bloomingdale, IL 60108   Balance due: $288,660            Zestimate: $269,500    Winning Bid: $186,401

1381 E. Evergreen #6 Palatine, IL 60074   Balance due: $153,600           Zestimate: $120,400    Winning Bid: $ 58,501

1527 Goldenrod Terr. Round Lake Beach, IL 60073   Balance due: $ 83,83 8  Zestimate: $100,900 Winning Bid: $28,087

 

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The World Series Might Be Over but the Government is still swinging.

Yesterday, HUD came out swinging. This time it was against Allied Bank.

From the sound of it, you might think that someone is actually being held responsible for their actions. Once billed as the largest privately held mortgage lender, Allied Bank is being sued by the federal government. HUD led the suit on account of its $834 million loss in insurance claims for bad and reckless loans. Loans that should never have been made in the first place were then further corrupted by false testimony that the loans qualified for federal insurance programs. Everyone but the mortgage originator, Allied Bank, got hurt. You didn't think the government was doing this out of the kindness of their hearts for the little guy? Well, they have to start somewhere. Maybe now that the government is seeing first hand the actual pain caused by the bad loans they will be more inclined to work with the victims at all levels.

 

 

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Using a lifeline...Help or more False Hope?

If you are one of 4 million homeowners foreclosed upon in 2009 and 2010, you are being given an additional lifeline. Resulting from the Federal Reserve, among others intervening last April, you are able to request an independent review of your foreclosure process. Better yet, it is FREE to you. The banks bear the burden of cost. Chances are your bank is one of the 14 lenders targeted for enforcement. These include Chase, Bank of America, Wells Fargo, etc. They must undergo these reviews as part of compliance measures aimed to purify the foreclosure process.  A second tier of robo-signing seems to be emerging. Consumed by the sheer number of foreclosures and being ill-equiped to handle the volume, mortgage companies subverted quality control processes and authorized documents without reading them or handing them off to lower level employees. Sound familiar?

Foreclosures will be reviewed individually, by request. You can only request a review on your primary residence. If it was found that you suffered "financial injury" as  a result of deficient procedures or inappropriate parties authorizing or supervising any aspect of the procedure, a claim can be made. The cap per claim is uncertain. However, maybe with all these individual measures, there is some hope for the little guy, after all.

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Coming soon to a County Auction near you...

Previews for the upcoming week

Tuesday Nov. 1

6 Rockgate Glencoe, IL 60022 Cook County Balance due: $6,625,000 Zestimate: $1,931,600

7852 Sq. Ft. Waterfront property on 1/2 acre

140 Linden Lake Forest, IL 60045 Lake County Balance due : $358,053 Zestimate: $533,400

2380 Sq. Ft. 2 story single family home with pool in Elite Lake Forest.

 

Wednesday Nov.2

21459 Brittany Frankfort, IL 60423 Will County Balance due: $749,600 Zestimate: $487,800

5291 Sq. Ft. Waterfront single family home adjacent to Forest Preserve

14 Spring Lane Barrington Hills, IL 60010 McHenry County Balance due: $994,129 Zestimate: $454,900

3433 Sq.Ft.  4 Bedroom single family home with fully finished basement on 4.86 acres

 

Thursday Nov. 3

10 S. Julian Naperville, IL 60540 DuPage County Balance due: $315,985 Zestimate: $343,500

1579 Sq. Ft. single family in ever- popular Naperville

5801 S. Grant Hinsdale, IL 60521 Dupage County Balance due: $1,343,481 Zestimate: $1,519,200

French manor built in 2009, never lived in with 4 bedrooms and 3 1/2 baths above grade.

 

Friday Nov. 4

505 N. Lake Shore Drive #4908 Chicago, IL Cook County Balance due: $453,000 Zestimate: $512,300

High floor condo in prestigious Lake Point Tower on Lake Shore Drive in full amenity building with lake and city views

1939 N. Sheffield Chicago, IL 60614 Cook County Balance due: $559,561 Zestimate: $953,400

3 unit with 1000 Sq. Ft unit apts in highly sought after rental area of Lincoln Park

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GOING ONCE, GOING TWICE...SOLD! 3 GEMS That Sold in Dupage Today

The auctions can be an exciting place. It's not every day that elite properties are available in even more elite locations.

Originally carrying a price tag of $3,150,000, 510 N. Clay in Hindsdale, Illinois went to auction today. Bidding began at a mere $532,000. Public records indicate the single family home contains 4,460 Sq. Feet with 4 1/2 Baths with almost 14,000 sq. ft. lot. The NIMLS shows a limestone county home with 5 bedrooms above grade, 4 fireplaces and 3 car garage. The basement houses an additional bedroom and bathroom, exercise room and great room, complete with wine cellar. The selling price today..................$656,000

Another new single family home. Originally listed in 2006 for $2,799,000, the home hadn't been yet been completed. The stone and stucco home was finished and listed at $2,599,000 in 2007. The 4,411 sq.ft. 3-story home sits on almost 1/3 an acre and houses five bedrooms and four and 1/2 baths above grade. The full finished basement, like the above property has a finished basement with guest quarters. Bidding started at $516,000.  Today's selling price...............$600,000.

In this economy, practicality is important. This next property sits in a highly sought after Naperville school district. The 2316 sq.ft home contains 4 bedrooms and 2 1/2 baths. Original list price = $429,000. Zilllow estimates this property to be worth $334,400. Today, the property sold for...................................... $217,001.

If your willing to wait and do your due dilligence, your dream home awaits!!!

 

 

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Peek a BOO! A Look at Chicago declining markets

You might be surprised to learn that some of Chicago's hottest neighborhoods are in decline. Foreclosures are known to rise when markets are falling. The more declining the market, the higher the probability for foreclosure. If you want to live in a hot neighborhood, your time may still come to get the deal of your lifetime. Information below is based on statistics comparing Feb. - April, 2010 to Feb. - April 2011. Percentages are based on medians of total sales provided by the Chicago Tribune.

Albany Park                Decline 15.5%

Beverly                      Decline 7.4%

Hyde Park                  Decline 20%

Lakeview                   Decline 7.6%

Lincoln Park                Stable

Lincoln Square            Decline 16%

Logan Square             Stable

Loop                         Decline 33%

North Center              Stable

Uptown                     Decline 26%

 

You may be able to get your dream home sooner than you think.

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Another empty offer? HARP offers help to a mere drop in the bucket!

MSNBC announced Monday that federal programs aimed to help underwater borrowers have been revamped. With these changes, the program plans to target 1 of the 11 million homeowners gasping for air. Will it really make a difference?

The main gist is relaxing the terms of HARP, the Home Affordable Refinance Program. This program had gained some ground due the fact that it dealt with borrowers who were actually ON TIME with their mortgage payments. As many homeowners have found, it was difficult to garner attention of lenders and other programs until they were at least 90 days behind on their monthly payments.

The main change to the HARP program is that it is casting a wider net. It discards a cap that "prohibits any homeowners whose mortgage exceeds 125 percent of the property's value from participating in HARP". It will also waive fees for the borrowers who shorten the terms of their loan during the refinance. It even encourages banks to participate by simplifying the process as well as scrapping the need for appraisals in most cases.

Estimates range from 600,000 to 1 million of those who could actually benefit. Earlier federal programs, such as modifications discussed a few days ago, have reached less than 1/2 of their goals.  Taking the middle road, this could toss life preservers to 800,000 homeowners. However, half of 800,000 is 400,000. So, if history is destined to repeat itself, these changes will help only 3.6% of those in need. I suppose every little bit helps but is it really worth all the red tape to help this drop in the bucket. What about the other 96.4%?

Only time will tell.

 

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