Digging For Diamonds In Foreclosure Mines

Posted in Foreclosures, July 1st, 2008 |

Those who are planning to buy a house today should get set to hard digging for diamonds in foreclosure mines. The first requisite is a good credit history. There is much talk going on about the mounting number of foreclosed houses begging to be sold at discounts but before being carried away it is well to consider some basic points – the potentials of the properties and the resources of the buyer. The two must match.

In May the number of foreclosed houses shot up to 9,670 in Illinois according to RealtyTrac. It calculated to a 15% hike from April and a jump of about 42% from April 2007. The figures include the properties in various stage of foreclosure starting from default to court auction notices and ending with bank repossessions.

The list of foreclosure postings is practically unending – there is so much going around that the buyer and easily afford to pick and choose. But Susan Sirles Fidler a realtor working with Re/Max had a word of caution. The stuff seems to be almost free but the condition is such that perhaps the arms and legs of the units have been amputated and have to be put together to make it viable – no mean job. So the buyer has not only to be wary but has also to be smart to be sure that the joints of the house are not falling apart before pitching in.

Among the many first time nest builders is 22-year-old Krystina Pratt of Chicago. She was surprised going through the inventory at the sheer contrast before her. Some houses were in superb condition while many others were covered with mould and leaking water – could hardly stand up straight. The shattered windows and graffiti were clear indications that squatters had played ball with it. Many of the fittings and fixtures had been yanked off. Finally she waited till winter was over to start searching again. This time she decided on an 1878 house in Grand Central Crossing.
Although it had been lying vacant for over a year this one had not been boarded up. There were neither broken windows nor graffiti. The plumbing was missing but the some items like water heater, kitchen cabinets and other woodwork were in shipshape condition. She offered $45,000 against the asking price of $44,900 to be sure that she was not refused. Here experience helped her because previously she had lost on two bids because others made cash offers.