You’re scouring the ILFLS website and you come across a home you think might be right for you. You’ve looked at the pictures, clicked on the details and found out the estimate from Zillow. You’re prepared. But then you see that it is listed as something called pre-foreclosure and you’re stumped. Or maybe you have a vague idea of what you think it means to be in pre-foreclosure? Well, we’re here to help clear some of that confusion away.
The first full week of August (5-9th) shows 696 pre-foreclosure properties listed for Cook and the surrounding counties. But what does that mean? A property is listed as pre-foreclosure once a Notice of Default has been sent to an owner who has missed a payment. In many cases, the owner of the home will make up the missing payment and the property will not continue down the track toward full foreclosure. So, though these properties are listed on many sites, only a handful will actually come onto the market and officially transition into being for sale.
However, because pre-foreclosure serves as a sort of limbo for the property owner, they may decide to try to sell the property themselves before it is repossessed. If that’s the case, the owner could list the property as a short sale, which means they are looking for someone to buy the property from them on short notice, usually at a price lower than the estimated value of the home or what they paid for it originally.
Pre-foreclosures are an interesting, and often volatile, part of the real estate markets. It’s important to remember that, though they are listed on many sites, they are not necessarily properties that you can buy right away. Best advice? Stay sharp and informed on what is going on in the Chicagoland foreclosure market and do your research on each pre-foreclosure home.
What else is new this week in Chicago foreclosures? Cook County sold 51 properties to investors and the surrounding counties sold a combined total of 39. The surrounding counties took a slight dip from last week’s combined total of 44 properties sold, while Cook County saw a two point increase.