Burst Pipe + Mold = It Finally Goes Under Contract: 1928 W. Diversey in West Lakeview
We actually chattered about this newer construction 4-bedroom duplex down short sale at 1928 W. Diversey in West Lakeview back in March 2010.
See our prior chatter here.
Back then, no one had much to say about the actual property. Instead, everyone fought over what neighborhood this would acutally be (North Center? Roscoe Village, West Lakeview? Hamlin Park? South Lakeview? None of the Above?)
Let’s just call it West Lakeview.
Since March of last year, not only has the property been reduced $115,900 but according to the listing “time is of the essence” because…
“MOLD IN LOWER LEVEL DUE TO RECENT WATER DAMAGE FROM SHORTED PUMP. NEW PUMP HAS BEEN INSTALLED. REMIDIATION ESTIMATE AVAILABLE. DAMAGE IS VERY RECENT.”
Two of the bedrooms are on the main floor and two are on the lower level.
There is also a family room on the lower level.
Additionally, the unit has a rare 3 full baths.
We know from the prior listing last year that the floors are cherry and there are granite counter tops in the kitchen, but no appliances. (Although with the water damage now, who knows about the floors.) There are no longer interior pictures with the listing.
Central air, an in-unit washer/dryer and 2 car tandem parking were included in the prior listing.
The unit recently went under contract.
Was the reduced price THAT good?
Patricia Pereyra at Keller Williams Lincoln Square still has the listing. See the exterior picture here.
Unit #1W: 4 bedrooms, 3 baths, duplex down, 2 car tandem parking included
- Sold in September 2006 for $515,000
- Lis pendens foreclosure filed in November 2009
- Originally listed in February 2010 for $474,000
- Reduced several times
- Was listed in March 2010 as a short sale for $439,900
- Reduced
- Currently listed as a short sale at $324,000
- Burst pipe and mold in January 2011- remediation estimate available
- Assessments of $165 a month
- Taxes of $7697
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 13×12 (main level)
- Bedroom #2: 12×10 (main level)
- Bedroom #3: 13×9 (lower level)
- Bedroom #4: 11×9 (lower level)
This is in North Center.
http://en.wikipedia.org/wiki/File:US-IL-Chicago-NorthCenter.png
Mold! No lender will touch it.
The neighborhood discussion is irrelevant. What is important is that it has water damage, mold, and no appliances! Is there really a washer and dryer or just the hookup? Tandem parking is a nice bonus, but without seeing the inside and the extent of damage I would be a little weary at this price.
i’ll see YOU as an REO later!
Geez if i had this kinda cash i would have found a better deal than this.
“Mold! No lender will touch it.”
Plenty of people with enough cash to buy it – but my question is: what is this neighborhood like? It seems rather west to be considered lakeview…
“i’ll see YOU as an REO later!”
If the lender is smart, they approve *any* reasonable (ie, not tree-fitty) short sale offer. Don’t want to assume potential liabilities like that.
Mold = deal killer!
“Mold = deal killer!”
For some = not for smart, flippers and developers….
yes clio is the new donald trump, ha. some unemployed loser talking big.
Mold is a deal killer if a mortgage is involved…I’ve spoken with several lenders about this. Might be able to get a rehab loan but not sure if mold remediation is OK with something like a 203(k).
“If the lender is smart”
when have 7 layers of buerocracy ever worked out in a smart fashion?
totally off-topic, but does anyone have any info on the development at dearborn and burton in the GC? i drive by it all the time and there are no ads, etc.
My understanding is that a 203k loan is fine with mold, but would that complex meet FHA requirements? 203k is VERY difficult to get on condos
gesco – this is where you can get a GREAT deal if you have cash. There are very few buyers w/ cash and I am sure you could talk down the price (upper 200s).
Clio, I would call it west lakeview… the problem is that no one has really mentioned here is that you are right by the Lathrop homes, which likely isnt going anywhere anytime soon, as the buildings have historic value.
I dont see short term or long term value here, a cash buyer could do alot better than this.
I showed this property two times, about 2 weeks apart. The first time I showed it, the mold was pretty evident. The second time I showed it, the mold had gotten significantly worse (in just 2 weeks!), covering almost the entire front half of the basement, up to about a foot or more up from the floor. It was very abundant, very pungent, and there was still some sitting water on the floor (who knows how long it had been there or how often it was coming back!). Someone is in for a fun remidiation with that project. However, at the right price, someone may have just gotten a good deal.
For those who don’t know Lathrop homes is one of the oldest affordable housing complexes in the city. There is a well established preservation effort to keep them from being demolished.
However there has been alot of big box development around diversey just west of damen, but i just dont see any long term significant appreciation in this area.
Clio: “There are very few buyers w/ cash”
Hey Wha’ Happened?
I thought the Groupon billionaires, bsd traders, and Citadel ballers were plentiful and cash was everywhere?
Where did all the cash go, Clio?
you’re close to costco, I guess
“For those who don’t know Lathrop homes is one of the oldest affordable housing complexes in the city. ”
Lathrop is a public housing complex. Don’t try to put lipstick on a pig.
chicagobull: I am speaking in relative terms when compared to the general population – but for some reason I think you know that.
“yes clio is the new donald trump”
Eric I think clio is more of a Ken Shodeen than the donald.
Also there IS NO WAY that clio would have that donald hair style…….
Interesting that the previous chatter already has a comment in April 2010 about mold at that time. It’s obviously not just a recent issue and has been there for a while. That said, this is probably a steal for a cash buyer with the means to evaluate mold remediation. If you know what you’re doing, mold remediation is easy enough.
Ok – 2 comments here –
– You say no lender will touch a house with mold. I think you are all making a big assumption that the appraisaer sent by the bank will even have a clue. Assuming the mold isnt all the way up the walls and very apparent…which it wouldn’t be if recent…I would bet the appraiser wouldn’t even notice. Last I checked you could get certified to appraise a house from a cracker jack box.
– Regarding Lathrop Homes…. I agree that they aren’t the prettiest but I’ll be damned if that community doesn’t do a nicer job of maintaining their landscaping that 90% of people living in “the green zone”. I drive by there regularly and there are ALWAYS people outside cleaning up leaves, salting sidewalks, etc. Sure it may be part of some community service program, but at least they are doing their best to keep it looking nice. When I lived in a condo I could barely get people to clean up after themselves in common areas. Goes to show money can’t buy class.
“Goes to show money can’t buy class.”
True. Also the majority demographic of Lathrop homes do not commit nearly as much crime as the demographics of Cabrini Green or Robert Taylor homes, assuming each sub-population roughly approximates broader statistics.
Um…Cabrini Green stats going down as Cabrini Green doesn’t exist anymore….
Mold on the inside, a leaking heating oil tank across the street that was never cleaned up. Air quality in this place must be GREAT!
IEMA # 20051147 LPC # 0316075034 IEMA Date: 8/16/2005
——————————————————————————–
Site: Lynn, David
——————————————————————————–
Address: 1909-1931 West Diversey Parkway
Chicago, . 60614 County:
Regulated by: P.A.
Products: Other Petroleum
——————————————————————————–
20 Day Rpt: 45 Day Rpt: Heating Oil Letter: 2/26/2008
Project Manager: Lizz Schwartzkopf
Phone: (217) 557-8763 Email: Lizz.Schwartzkopf@illinois.gov
Tank Operator General Title XVI TACO Claims Search
“Cabrini Green stats going down as Cabrini Green doesn’t exist anymore….”
Actually it does so if you don’t know what you’re talking about you look rather dumb.
Really, than what is all of this about….
http://yochicago.com/the-end-of-cabrini-green/19090/
http://www.chicagotribune.com/news/columnists/ct-met-schmich-1210-20101210,0,276957.column
Only a small strip of rowhomes (which are mostly empty b/c they are being remodeled) remain. The neighborhood called Cabrini Green as it was known in the 70-90s is no longer in existence. Its been replaced by mixed income housing, affordable (75K for family of 4) and market rate housing (some of which is in the 1 million dollar range.) Show me last year’s crime stats for these populations if your so knowledgable.
“totally off-topic, but does anyone have any info on the development at dearborn and burton in the GC? i drive by it all the time and there are no ads, etc.”
jfmiii,
That project has been going on forever. It was a old hotel converted into rental apartments and the owner got Condo Conversion fever in 2005 and went ahead with the project. He ended up tearing down 75% of the building once it became structurally compromised during demo work and went ground up on the new portion. Due to his control freak nature the project has progressed painfully slow and I wouldn’t be surprised if he has lost it all by now after being under construction for over 5 years.
Being said, unless anything has changed, it is a 8 unit building with indoor parking for each unit, square footages range from the mid 3000s to 6000+ for the penthouse (top floor, north wing), finishes are appropriate for the area and if I remember correctly ceiling heights range from 10-16′ depending on the unit.
“He ended up tearing down 75% of the building once it became structurally compromised during demo work and went ground up on the new portion.”
We may be talking about a different place, but if this is the place I’m thinking of it actually collapsed. (Or, if it was an intentional demo, it was an announced Miegs filed style affair.) It was a Saturday or Sunday morning. Don’t remember which, but I was out walking my dog and came upon it about 10 minutes after it happened. The whole neighborhood was standing around shaking their heads, complaining about how the owner had been letting the place go to hell for years. The remains stood there for a few months. Then one day they started building around the section of the building that didn’t collapse. So it’s half of a building that collapsed plus half new construction. Seems like a strange framework for million dollar condos.
http://articles.chicagotribune.com/2005-11-20/news/0511200352_1_buildings-department-collapsed-gold-coast
It was a Saturday. And jfmii’s post was actually not off topic. Building collapsed due to a burst pipe.
alanon,
We are talking about the same place. Talking to the owner it started to seem like it was a case of what came first, the chicken or the egg. Regardless, he was in the process of converting it, so who knows whether it happened by itself or was a result of work being done. It has been so long I forgot that the place actually collapsed… and that they had to get the rest of the remaining structure tested for structural integrity. Building inspectors ended up green lighting the South wing of the building, ensuring that it was still technically a renovation/rehab rather than new construction.
JAB Realty and Development… feel free to read the horror stories on Yelp about his rental properties and his disgusting attitude.
“You say no lender will touch a house with mold. I think you are all making a big assumption that the appraisaer sent by the bank will even have a clue.”
I rarely see MLS descriptions with a discussion of mold…even in properties where the mold is quite obvious. Assuming it’s quite apparent, an appraiser will make note of it…though I agree with you that the appraisal is a joke because the management co hires the cheapest company possible and pockets the difference. Anyway, if mold is noted you will have a hard time getting that loan approved.
No one has convinced me that mold can be abated, once it gets a foothold in the concrete.
wow, thanks dude. have been wondering about that place for a while now.
I seem to recall that many home insurance companies are refusing to write policies for homes w/mold issues, due to prevalence of significant claims in South/Florida. Can anyone confirm? Given permanent nature of information posted on internet, it would seem likely that home insurance companies would now review on-line listing history and incidental goggle-discoverable postings about a home before underwriting a property. And since homeowner insurance policy must be in-place at closing to fulfill mortgage requirements, an insurance agent will tour property before closing to do insurance appraisal and inspection. If this home has a significant mold problem, I wonder how closing can occur if it’s not a all-cash transaction.
Good point…and appraisers also review the MLS listing, so they don’t need to visually identify the mold. It’s clearly disclosed in the listing and, as a result, will likely be noted in the report.
Please raise your hand here if you have a applied for a mortgage in the last 12 months? Lending standards have become incredibly rigid, no bank will do a conventional loan on a property. Sure sometimes they might not notice it, but this one has it in the description which they do read. (Also lender orders appraisal not management company).
Unless you are using hard money or have some kind of portfolio lender at a small community bank for which you have 3 million sitting in savings you won’t be able to get a loan on this property.
The only way to get a loan would be a 203k, but for Condos those are nearly impossible to get (maybe if it cost less than 35k to make livable you could do). If this was a house it would be different, a 203k, would take alot of time but go through.
Again if i had the cash there are alot better values than this
“Please raise your hand here if you have a applied for a mortgage in the last 12 months? Lending standards have become incredibly rigid, no bank will do a conventional loan on a property.”
I received a conventional mortgage commitment for the purchase of a property several months ago.
I closed on a 30 yr jumbo about six months ago. Process was more complicated than when I bought my last place in 2004. But it was still a lot easier than I was expecting. The biggest problem seemed to be that the bank couldn’t get their sh*t together. Paper work was done, they said they didn’t need anything else from me, but we still had to extend our mortgage deadline two times. Then they didn’t have the funds ready at the close and we had to sit around for three hours nervously waiting for the money to wire. So the process seemed more haphazard than “rigid.”
I previously had a HELOC opened in 2007. Within the last year, I closed one HELOC and replaced it with another. The documentation requirements did increase with respect to the Insurance binder. The lenders that I dealt with required that the insurance company list the lenders as having a 1st 2nd HELOC whichever on the insurance binder.
Yes, the fact that the listing says mold is probably a bad thing when it comes to the appraisal. So shame on the realtor. I mean it is nice to know…but could have held off and disclosed when a call was made for a showing. In addition …. most will just note that water damage was apprent and add clauses indicating that they are not an expert or inspector and that further investigation as to the extent of the problem would need to occur.
Also did a conventional 30 year with small HELOC in last 6 months. Was more difficult with more documentation being needed but the last couple times I just needed a signature and a bank account. So more documentation was likely the right thing!
Shame on you for blaming the realtor.
Gotta blame someone….the game of real estate has so many middle men its a wonder any house ever closes – buyer/ seller/ sellers agent/ buyers agent/ sellers atty/ buyers atty/ bank/ appraiser/ inspector/ closing company. Seriously…you would think that someone would come up with a much more efficient process for this. There is no need in today’s age to buy a home the same way you did 10 years ago.