Comments on: Little Fish In A Big Pond - The Business Of Foreclosed Property http://www.chicagohomeestates.com/agent_view/2007/05/02/little-fish-in-a-big-pond-the-business-of-foreclosed-property/ Chicago Real Estate weblog Fri, 25 Jul 2008 01:35:35 +0000 http://wordpress.org/?v=2.0.6 by: edward balcsik http://www.chicagohomeestates.com/agent_view/2007/05/02/little-fish-in-a-big-pond-the-business-of-foreclosed-property/#comment-6645 Tue, 13 May 2008 03:33:12 +0000 http://www.chicagohomeestates.com/agent_view/2007/05/02/little-fish-in-a-big-pond-the-business-of-foreclosed-property/#comment-6645 As a real estate attorney, I have been asked this same question many times. I have to say yes there is money to be made in foreclosures, but buying at a foreclosure auction is not for the inexperienced. There are a number of pitfalls and potential pitfalls. You must have cash. Auction sales require 10-25% at auction the remainder in 24 hours. There often are title issues, your attorney must research these issues before auction. After the auction is simply to late. It is already your property and hence your title problem. Access to the property is usually limited and you are buying the property as is. If the interior is a disaster, it is your house, your problem. For most purchasers a better option is to have their real estate agents investigate reos (real estate owned). These are the properties the lenders have acquired through foreclosure. With these you have time to investigate the property, get a loan and due your due diligence. If you decide to buy at auction, get a good agent and attorney to advise you. It will definitely prove worth it. As a real estate attorney, I have been asked this same question many times. I have to say yes there is money to be made in foreclosures, but buying at a foreclosure auction is not for the inexperienced. There are a number of pitfalls and potential pitfalls.

You must have cash. Auction sales require 10-25% at auction the remainder in 24 hours.

There often are title issues, your attorney must research these issues before auction. After the auction is simply to late. It is already your property and hence your title problem.

Access to the property is usually limited and you are buying the property as is. If the interior is a disaster, it is your house, your problem.

For most purchasers a better option is to have their real estate agents investigate reos (real estate owned). These are the properties the lenders have acquired through foreclosure. With these you have time to investigate the property, get a loan and due your due diligence.

If you decide to buy at auction, get a good agent and attorney to advise you. It will definitely prove worth it.

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