Lovely 1 bedroom 1 bathroom condo w full kitchen, eat in area, hardwood floors, & in move in condition.  Come and see today!  Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds.  View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

By Dan Levy

June 30 (Bloomberg) — Homes in the foreclosure process sold at an average 27 percent discount in the first quarter as almost a third of all U.S. transactions involved properties in some stage of mortgage distress, according to RealtyTrac Inc.

A total of 232,959 homes sold in the period had received a default or auction notice or were seized by banks, RealtyTrac said in a report today. That’s down 14 percent from the fourth quarter and 33 percent from the peak a year earlier, the company said. The average price of a distressed property was $171,971, according to the Irvine, California-based data seller.

“The discount will probably stay between 25 percent and 30 percent as lenders carefully manage the number of new foreclosure actions in order to avoid flooding the market,” Rick Sharga, RealtyTrac’s senior vice president for marketing, said in an interview.

“We’re clearly creating more properties that will be sold at distressed prices than the market is absorbing,” Sharga said. There were more than 250,000 new bank seizures in the first quarter.

The discount reflects the average sales price of homes in the foreclosure process compared with the average sales price of properties not in distress. About 31 percent of all U.S. sales in the quarter were of homes in some stage of foreclosure, RealtyTrac said.

Rising Seizures

Home foreclosures set a record for the second straight month in May, with increases in every state, as lenders stepped up property seizures, RealtyTrac said earlier this month. Bank repossessions climbed 44 percent from a year earlier and will probably set a record in the second quarter, the company said.

Distressed sales totaled more than 1.2 million last year, a 25 percent increase from 2008 and a more than four-fold rise from 2007, according to RealtyTrac.

Such transactions accounted for 29 percent of all sales last year, up from 23 percent in 2008 and 6 percent in 2007. The average foreclosure discount was 25 percent in 2009, 22 percent in 2008 and 26 percent in 2007.

A “normal” market would show foreclosures accounting for less than 2 percent of sales, Sharga said.

Bank-owned properties sold for an average 34 percent discount in the first quarter, up from 32 percent both in the previous quarter and a year earlier. Such properties accounted for 19 percent of all U.S. home sales, up from almost 16 percent in the fourth quarter and down from 21 percent in the first quarter of 2009, RealtyTrac data show.

Short Sales

Properties in default or scheduled for auction sold for an average discount of almost 15 percent, up from almost 14 percent in the previous quarter and down from 16 percent a year earlier. These homes are often sold in short sales, where lenders accept less than the outstanding loan amount for the property, RealtyTrac said. Sales of properties either in default or headed for auction accounted for 12 percent of all sales.

The average price was $154,740 for bank-owned properties and $199,950 for homes in default or scheduled for auction, RealtyTrac said.

“The competing forces will be bank-owned properties and short sales,” Sharga said. “The more short sales, the lower the average discount is likely to be.”

Nevada had the highest proportion of distressed sales of any U.S. state, with 64 percent of all transactions involving properties in mortgage distress.

California ranked second, with such sales accounting for 51 percent of all sales and Arizona was third at 50 percent.

Discounts on distressed homes were highest in Ohio, Kentucky and Illinois, where they sold for an average of at least 39 percent less than non-foreclosures.

RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population.

–Editors: Daniel Taub, Sharon L. Lynch

Businessweek.com

2 bed, 2 bath spacious corner unit with hardwood flooring and storage .Come & see today!  Buyer responsible for any/all compliances, escrows etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof funds. Buyer to verify room count, PIN#s, zoning, schools etc. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This listing is exclusively represented by the Helen Oliveri Team of Keller Williams Realty.

Solid Brick Bi level Home with 2 bedrooms and 2 bathrooms. Home features carpeting throughout and a finished lower level. Home has side drive to 1 car garage, large backyard, patio and storage as well. Close to transportation and shopping. Come see all this home has to offer today! No survey or disclosures. Buyer responsible for any/all compliances, escrows etc if required. All inspections including systems tests are at buyers expense. All offers require pre-approval & EM due in certified funds at acceptance. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

With the first-time homebuyer tax credit deadline having come and gone, you may be asking yourself, “What now?” Fortunately, the door is now open to a new wave of savings: distressed properties.

For many buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices.

According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time buyers in 2009. 50 percent of all short sale buyers were first-time buyers.

By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.

If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:

Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.

Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.

You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.

Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.

Your best ally when purchasing a distressed property is an expert. Always have a professional REALTOR® by your side to help you make informative decisions.

If you’re interested in learning more about purchasing a distressed property please call us today at 847-967-0022.

2 bed, 2 bth unit in ready to move in condition, Community is filled w/amenities. Come by & see today! Buyer responsible for any/all compliances, escrows etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof funds. Buyer to verify room count, PIN#s, zoning, schools etc. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This listing is exclusively represented by the Helen Oliveri Team of Keller Williams Realty.

2 bedroom, 2 bathroom condo in need of completion of rehab. Great opportunity, building has no HOA currently. Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required.. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

2718 N Montclare Chicago. IL 60707

3 bedroom,1 bath solid brick home w/2 car garage. Bring your finishing touches. Come see this home today! ! Buyer responsible for any/all compliances, escrows etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof funds. Buyer to verify room count, PIN#s, zoning, schools etc. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This listing is exclusively represented by the Helen Oliveri Team of Keller Williams Realty.

One day in June 2005, a housing economist I was interviewing said he was starting to worry about large numbers of homeowners finding themselves “underwater.”

“What’s that?” I asked. It was a new term to me. At that time, Americans were practically drunk on housing, buying up real estate as fast as they could, and few voices, especially those in the industry, were willing to spoil the party by suggesting that a hangover was on the horizon.

Maybe you prefer the term “upside down” to underwater, but in either case, it means that you owe more on your mortgage than the house is worth.

Today, though, we seem to be sadly acquainted with the concept, according to a new survey by Harris Interactive, which claims that nearly one-fourth of all people who hold mortgages on their homes think they’re underwater.

That’s more than 27 million people, the pollster said.

And they’re worried, the poll reported. Among those who claimed underwater status, 42 percent say they’re “very concerned,” and another 38 percent are “somewhat concerned” about not having enough income to cover their costs.

All of this was announced at about the same time that the federal government said it was ramping up its Home Affordable Modification Program, or HAMP, to help some underwater borrowers. Participating lenders may now receive incentives to reduce the principal on loans that are more than 115 percent of the current value of the property, though that life preserver may be tossed too late to help some. The Treasury Department has said it might not have the incentive program fully operational until this fall — if it happens on a broad scale at all.

This week, representatives of the major banks appeared before Congress to talk about the voluntary program and expressed some strong reservations, even though many industry observers had earlier gauged the lenders to be onboard with the HAMP plan. David Lowman of JPMorgan Chase said the estimated $700 billion to $900 billion cost of principal forgiveness would have to be paid for somewhere, and it probably would be priced into the cost of future mortgage lending.

Then there’s the simmering-anger issue: U.S. Rep. Jeb Hensarling, R-Texas, wondered during the hearings about the fairness of it.

“It’s a policy that says to the citizens who work hard, who live within their means, who save for a rainy day, ‘You are a sucker.’ When you’re struggling to pay your own mortgage, you shouldn’t be forced to pay your neighbors’ as well,” he said.

The Washington report

The National Association of Realtors recently disclosed it spent $5.6 million lobbying the federal government in the fourth quarter of 2009.

That spending was about one-third more than the $4.2 million spent in the third quarter by the trade group, which is headquartered in Chicago.

Trading spaces, sort of

On the same day this month, two real estate sites separately announced they were going into each other’s territory. A popular site for listings of homes for sale announced it would expand into listings of rentals. And a popular site for finding vacation homes for rent announced it had created a marketplace for listings of vacation properties for sale.

The switches reflect a couple of realities in today’s market. Trulia.com, in announcing that in addition to homes for sale it would also offer search features for rentals, explained that it believes that Americans these days could go either way — buy or rent — and the company wants to accommodate.

Trulia might be right: Another rentals site, Apartments.com (which is partly owned by Tribune Co., which owns the Chicago Tribune), says it saw “unprecedented growth” early this year, with a spike in traffic to the site and in follow-through calls to landlords. The rental business has struggled mightily in this recession, but it’s not hard to picture more would-be homeowners deciding to stay on the sidelines as renters now.

And HomeAway.com, which dominates the vacation-rental market online, unveiled HomeAwayRealEstate.com on the same day. The company, based in Austin, Texas, cites National Association of Realtors data suggesting the market for second homes is recovering. That may well be true, but it’s also true that today’s economic realities have turned that once-beloved getaway home into a drain on the wallet for many people who are simultaneously trying to rent it and sell it.

In either case, see “underwater,” above.

Mary Umberger

An underwater world for many homeowners — chicagotribune.com