Illinois Foreclosures for Sale

Posted in Foreclosures For Sale, September 26th, 2008 |

As with any investment process, there are advantages to purchasing Illinois foreclosures for sale directly from the lender or bank, and there are also some disadvantages. Fortunately the advantages outweigh the disadvantages, but it is important to take a look at both of these to be aware and able to make an educated decision.

The chief advantage of purchasing Illinois foreclosures for sale directly from the lender or bank, means the property has already changed hands into the ownership of the bank. It no longer has liens or judgments against it and the banker or lender has taken care of any and all legal work pertaining to the property. This includes property taxes, attorneys fees, and basically all matters relating to the sale of the property.

As all the legal work has been done and paid for by the bank, the risks associated with buying Illinois foreclosures for sale is minimal. It is also possible to negotiate better interest rates, lower down payments, discounts from the market value, and reduced closing costs. All these factors taken into consideration makes for a better, cheaper purchase of the property, and this has a certain advantage attached to it. Saving money is a very attractive prospect in this day and age.

It is not that you will be able to “steal” the property from the bank. Don’t fool yourself on this matter, but you will certainly be able to purchase a discounted property, and you will be the envy of the neighborhood, with your low purchase price, monthly repayments and interest rate. This is the perfect opportunity for both investors and people who are in the market to purchase their first home, the more money you can save, the better.

The disadvantages of buying Illinois foreclosures for sale directly from the lender or bank, particularly for the first time home purchaser or investor, is that rewards follow risks in the industry. The payoff in terms of this method of investment, is generally lower than it would be when buying pre-foreclosures or buying off auction.

REO investors purchasing Illinois foreclosures for sale should easily be able to achieve a 10 – 20% discount, compared with the market price of comparable property. Bigger discounts are much more difficult to find. Discounts in the area of 25 – 35% are possible, and bigger discounts of 40 – 60% are still possible, but are becoming rarer by the day.

Banks and lender are not generally speaking in a huge hurry to get rid of Illinois foreclosures for sale, although they should be, they are in the banking industry, not the real estate industry. However, this being said, they often move at a snail’s pace and sell the property “as is”. This means they do not cooperate in terms of making much needed repairs, allowances or reparations. And although this is extremely rare, there may be a problem evicting a homeowner or tenant. If you are prepared to take the risk however, buying pre-foreclosures for sale might be the wiser option.