We are dedicated to publishing properties, located in the State of Illinois, which have been acquired by Private Lenders or Public Guarantors as a result of a homeowner’s default. It is our hope to present as many qualified and available properties as possible. We acquire our data from reliable sources to ensure complete, accurate, and current information.
As a first-time homebuyer or as a real estate investor, you can utilize this information to locate the home of your dreams. The key is knowing where these real estate opportunities are located. Foreclosure Illinois puts these opportunities within your reach, by identifying the location of the property, along with the identity of the licensed real estate agent responsible for selling the home.
At Foreclosure Illinois, we advocate sound financial counseling and making good decisions. If you, a friend or a family member is in need of information on foreclosure predicaments, we recommend an excellent article produced by the Department of Housing and Urban Development. (See How to Avoid Foreclosure)
Many people believe that if a property is a foreclosure, it may be purchased for less than full value or at deep discounts. This is not necessarily so. Distressed properties offer excellent opportunities to buy homes and other types of real estate at wholesale prices; however, it takes work to find and acquire these properties because not every distressed property is a true “bargain.”
To understand the opportunity that foreclosures present, it is helpful to understand what a foreclosure is, and its different stages of buying opportunities.
A foreclosure is a term commonly used to describe the “end result” of the process where a lender takes back a property from a borrower. In reality, a foreclosure is the actual process followed by a lender to enforce payment of a debt secured by a mortgage. This process, however, done in stages, usually ends with the lender taking and selling the property.
The first stage takes place before a formal foreclosure complaint is filed. This is commonly called the “pre-foreclosure” stage. There are a few well known purchasing opportunities at this stage ~ with varying degrees of risk.
In the first scenario, the lender and the homeowner try to work out the default by permitting the homeowner to sell the property at less than the total amount owed. This alternative is called a “short sale.” This is only permitted when the appraised value of the property is a certain percentage of the amount owed, and the potential sales price is a certain percentage of the appraised value. Because the lender is cooperating in the sale of the asset, a purchaser at this stage may gain equity, with limited (or known) risks.
In the second scenario, the homeowner sells their interest directly without cooperation from the lender. The homeowner usually will accept some percentage of the “equity,” which is the difference between what is owed and the home’s market value. The are, however, many risks at this stage, including: other liens of record; the inability to know market value; dealing with a distressed owner, etc.
The second stage begins after the court has awarded a judgment of foreclosure in favor of the lender. This is commonly called the Sheriff’s Sale. At this point, the Courts orders the property sold to the highest bidder. The sheriff, through an agent, conducts an auction sale of the property. If no one bids an amount equal to the judgment, then the lender will usually bid their judgment rights and be awarded the property. The auction is open to the public and anyone may bid at this time. This is usually a very risky stage, since there is usually no right of inspection, a requirement to put up the entire purchase price, and uncertainty as to governmental liens such as taxes and assessments. This is high risk.
In the last stage of the foreclosure process, the lender takes title in their name and sells the asset to recover as much of the bad loan amount as possible. The lender typically readies the property for sale by cleaning and performing minor repairs, as needed. These properties are typically sold “AS IS” and without warranties of any kind. Still, these opportunities offer the safest situation for inexperienced foreclosure buyers particularly if the buyer carefully inspects the house, the surrounding neighborhood, and is prepared to perform any necessary repairs. There is good upside for gain while the risks are minimized, since there are no back taxes or liens, and the property is vacant. These are the properties that Foreclosure Illinois presents to you.
If you are interested in becoming an owner of a foreclosure home within Illinois, and would like to view a property, you can search our database for your desired location and property type. If you see a property that is interesting you can contact the listing agent directly for a viewing, or if you have a real estate agent, have him or her contact the listing agent for the appointment.