Adventures in Chicago Real Estate is about the daily issues that I see the consumers facing in this financial crisis.  That being said, let's get talking about what's happening out there in Chicago, Illinois.

In Rogers Park, a northern community that butts up against Skokie, Evanston and swings around with Lincolnwood, has just seen an increase in pre-foreclosure activity.  There are roughly 345 pre-foreclosure properties that are not even on the market, that may have or have not considered some options besides foreclosure (and I'm not talking bankruptcy!).  Most of the foreclosure activity is seen within the condominium portion of Chicago Real Estate.

South Loop - This is truly amazing and I about flipped when I saw this.  There is a low in available condominiums in the $280K to $300K range in this neighborhood and those are the condominiums that are selling!  While there is 439 active listings, there are only 189 pre-foreclosures in the Chicago, IL 60605 zip code and a small portion of bank owned properties. 

Freddie Mac REO Incentive Ending - If you have a contract dated October 30, 2009 and will close by December 31, 2009 and it is your PRIMARY RESIDENCE, Freddie Mac's SmartBuy program pays closing costs of up to 3.5% of a home's purchase price.  BUT and I say, BUT, Freddie will still continue to provide two years of home warranty coverage on homes it sells from it's REO inventory. 

Don't make an assumption that Freddie Mac is just going to hold out their hand and say ... "Hey, here it is!"  You'd better follow up  to make sure that the home you are buying qualifies under this program and if it isn't, there are other programs out there in the REO inventory world. 

Oh, BTW, you have no options on the Product Service Provider for Home Warranties.  It is provided by Cross Country Home Services but I bet it doesn't cover pre-existing conditions. 

BPO'S:  I had a call from a bank in California this week to discuss an exterior BPO, done on a short sale listing that I have at 7505 Keeney in Niles, IL  60714.   That call lasted 45 minutes with me explaining that while the brick looked great on the outside, the inside needed alot of attention.  "How much attention?", asked the bank.  IN the area of roughly $60K - $100K and that's the prices I get.  As I told the bank, "the costs could be higher because I go to Walmart with coupons." 

Value Wise:  There is some good product value out there but you need to understand what you are buying and don't go in blindly.  When looking at 2-3 Unit properties, what are they getting in rent?  Will that rent support the mortgage payment, insurance, real estate taxes, and replacement costs for furnaces, water heaters, roof, windows, etc.  If you are considering a condominium - for pete's sake, look at the association and see what is on their by-laws for the last couple of meetings.  Are they professionally managed (not all management companies are created equal), self-managed (sometimes good, sometimes bad), are there any short sales or foreclosures in the building that has left the association "hanging" with some unpaid assessments? 

Inspections:  If you are buying a condominium - just don't inspect the unit itself, but do a forensic inspection of the common elements.  Look for deferred maintenance instead of Cinderella. 

Until next Sunday, I hope this helps guide you just a tad.  If you have questions, then reach out to me at 773-746-5395.