Foreclosure Alert: 40% Under the 2006 Price: 1412 W. Division
This 2-bedroom unit at 1412 W. Division in West Town might be a little too close to the Kennedy Expressway for some people’s tastes, but it’s now bank-owned and on the market for about 40% less than it sold for in 2006.
See the exterior picture and the listing here (unfortunately- no interior pictures available).
Has anyone seen the inside?
This was on the market last year, and from what I can remember, it had fairly standard new construction finishes on the interior.
The bank has recently reduced the price by $27,100.
The listing says “Cash Only” and warns that there is “No HOA.”
Is this a deal?
Linda O’Donnell at Re/Max Signature has the listing.
Unit #2: 2 bedrooms, 2 baths, no square footage listed
- Sold in September 2006 for $435,000
- Bank-owned as of June 2008
- Was listed by the bank in October 2008 for $289,900
- Reduced
- Currently listed at $261,900 (1 car parking looks to be included)
- Assessments of $150 a month
- Taxes of $6596
- Listing seems to indicate no central air
- Bedroom #1: 13×14
- Bedroom #2: 11×12
- Living room: 13×15
- Kitchen: 5×8
I don’t care how nice this condo is inside, you have the ambience of 24 hour gas station lights and noise next door. I just don’t understand the thought process behind some of this construction. There was a builder asking 500k+ for 2-3 bedroom condos above the Mobil at Irving Park and Western…suprise, they are still for sale.
5 x 8 kitchen? $6600 taxes? LOL
Exposed concrete block construction, coupled with sloppy masonry work? Look for serious structural problems in near future, and quick deterioration of building itself.
Also, fair warning, a significant number of foreclosure properties are poorly maintained, vandalized, and often poorly constructed newer buildings. A “low” price doesn’t necessarily translate into a “good value” price. This particular unit is a bad purchase.
I hope that 5×8 is the floor area between the cabinets…. From the room sizes it’s tiny and totally overpriced AND a gas station next door and empty storefront in house. Not a good sign. And if it’s a condo storefront you could have food service in the building. Not a good deal.
convenient location for when the seller gives up and decides to torch the building for insurance money.
I think “revive” says it all. that patient is dead, time of death, some point in 2005.
could make a decent commercial space, office of some type for a start-up, maybe back office work.
With No HOA, your assessments are gonna be a hell of a lot more than $150 a month. 5×8 kitchen? I hope that doesn’t include countertops and cabinets!
Anyone that buys this at ask with cash only is an idiot.
I’ll take the whole building at that price!
This sounds like a Bonnie and Clyde purchase. Bonnie hikes up his price, sells to Clyde. She makes a few payments, and the dissapears with Bonnie back to their native country. In 2006 $435 could buy a top notch 2 BD, 2 BA in much more vibrant location. Who in their right mind would fork over that kind of money just to live next to the expressway. I don’t see how this could have been a legitimate purchase.
that’s right, blame the foreigners. clearly locals wouldn’t participate in any kind of fraud…
Heck since they’re not even pursuing fraud when perpetuated by domestic fraudsters it might as well be domestic!
I used to think there would be less incentive to pursue this scheme if you lived here for fear of future prosecution. But we haven’t seen any yet! That I’ve heard of, anyway.
But still the imagery of Guido from Romania smiling while wearing some heavy, Mr. T like gold chains smoking a fat stogie while boarding a G5 back to the motherland is so much more humorous.
I mean really these fraudsters were much smarter than our financial system that we’re so desperately trying to save now. I say let it fail. The community and smaller banks/credit unions will step up to replace it.
Art,
In this case I think Lauren’s right. The buyer’s name has an Eastern European ring for sure.
12*(1650-150)-6596/.055/.8 = ~$260k
So, if (really, really big IF) this would rent for $1650, Stevo’s formula says it’s worth the current ask.
This points out another thing to remember(yes, Stevo, I know you know this–not saying otherwise)–if you’re thinking about renting your place as a fallback, you need to remember that property taxes are a LOT higher if you aren’t the o/o using the homestead exemption (and lying about it is criminal fraud, which I expect to begin being prosecuted as the city’s budget problems get worse). So, if you run your numbers based on taxes including the homestead exemption, that’s going to paint an unrealistic picture of the cash available to pay the mortgage.
Chris:
“The buyer’s name has an Eastern European ring for sure.”
Yeah, and everybody knows there aren’t ANY eastern europeans who are Chicago natives. Not one. Tell me again how we elected a foreigner as our governor.
“Guido from Romania”
Think you’re mixing your ethnic stereotypes there, Bob.
This sterotype is not that far off.
I saw this listing a week or so ago and drove by the place. There is a huge lighted Shell sign on the side of the building in front of the windows. I’d like to see what its like in that place at night!
*sigh*
“In the general election, Blagojevich defeated Republican Illinois Attorney General Jim Ryan. Blagojevich’s campaign was helped by his connected father-in-law, Chicago alderman Richard Mell. Ethics scandals had plagued the previous administration of Republican George Ryan (no relation to Jim), and Blagojevich’s campaign focused on the theme of “ending business as usual” in state government. Blagojevich won with 52% of the vote over Jim Ryan.”
That’s how.
Now feel free to tar me as a xenophobe because I successfully identified an Eastern European name.
jason(tfo):
I was only talking about the quoted language. I don’t think that Guido is a common Romanian name.
😉
Well its common in New Jersey, and that place appears about as second world as Romania to me, so..
“Now feel free to tar me as a xenophobe because I successfully identified an Eastern European name.”
Not for identifying an Eastern European name, but for assuming that a “foreign-sounding name = foreigner”. Unfortunately it’s not that easy, or we’d already be rid of Milorad Blagojevich, that damn foreigner.
“Well its common in New Jersey”
Heh. Different criminal syndicate, but I bet it will turn out that they were **very** active in similar fraud.
This properties interior is not that bad. It has S/S app, marble tops, 42′ wendge cabinets, marble bth w/ doulbe vanity, and W/D in unit. It also appears to have Garage parking. It was rented out last year for 2150 a month. I have been reading your posts for about a year now and some of you seem to know what your talking about and some are so far off its not even funny. This property is not THAT bad. The owner on record is Polish. I looked it up, asked one of my Eastern Euro workers and yes, it is polish. However, some people like the location of being by a express way for easy access. Also its BANK OWNED. This means you can get a real good deal. Hell, I have sold places over there for double that. If you get this for 200K, you will be making money if you can rent it out for just 1800.
Also the problem with this building is not the price, its the fact that I dont think there is an owner for the third unit or the store front property. This causes the headaches.
“If you get this for 200K, you will be making money if you can rent it out for just 1800.”
Of course. But that’s two assumptions.
“The owner on record is Polish.”
Yeah, but is he a foreigner? Polish name =/= non-resident.
“I dont think there is an owner for the third unit or the store front property.”
Meaning the developer is still in title? Or that they are in the foreclosure process?
Anon,
from my experience, banks are taking whatever they can on their foreclosures. If they get a good cash buyer, they want out as quickly as possible. And wether the person is from here or not, maybe you guys are forgetting, unless your native american, your not from here either. Most of the people who invest in real estate in this country are not from here. Or a lot of business ventures in this country for that matter. I can name a list that could go on for ages.
“Most of the people who invest in real estate in this country are not from here. ”
I doubt this statement. Show some proof. Otherwise you’re just blowing smoke.
Also the native Americans came to America from siberia via the Bering Straight. Its all about which timeline you reference.
“unless your native american, your not from here either”
Neither are they, steele. Their ancestors just beat the rest of us by a few thousand years.
But you missed my point–I was mocking the assumption that “foreign name = foreigner”. You just got caught in the middle.
I rent a newer condo (built 2001, not rehabbed) down the street from this place. No way could you get $2,100 for that unit, unless you got lucky and rented to a complete moron. $1,800 is possible/reasonable. I like the area, too bad its next to that Shell…
Bob you made a very intelligent comment yesterday that they were giving out 100% loans earlier this month. Funny thing is, they werent. However, maybe I made a mistake saying that “most” people are foreigners. ALOT of them are. Especially in chicago. And the native american thing is just saying that we are all foreginers in a sense. Th fact of the matter is who cares if this guy is foregin or not? Its totally off subject. And I know all of us “Americans” dont scam ever? *cough* stock market *cough*
Here is the real thing, besides anon (tfo) baffling us with obviousness. Suppose you are party to a fraud along the lines of what’s been described on CC. The bank knows a lot about you. How do you get away scot free? It seems like fleeing abroad is the most foolproof way. Without it, the fraud doesn’t work. Hence the assumption that many of these fraudsters are foreign-born.
“And I know all of us “Americans” dont scam ever?”
And never, ever, do US citizens with foreign-sounding names do anything untoward–just ask our dear Governor about that one.
Obviously some people on this board would not make good police detectives. If you get a hunch you run with it. Bob’s got a hunch that the *contractor* with a *foreclosure* property and a *Polish* sounding name who committed *fraud* is a *Polish* immigrant. Yes, it is impossible to tell from the known information whether or not this is 100% definitely true, but it’s a hunch that’s worth investigating. Bob, I think you’re on to something. Here’s the keys to a squad, now go investigate.
Bob, I’ll meet you at the donut shop.
“How do you get away scot free?”
Be judgment proof (or use a judgment proof strawman). It’s hard to prove criminal fraud and, frankly, the banks don’t care. And if you’re running a long con, with dozens of properties and a crew of appraiser(s), title agent(s) and mortgage broker(s), you’re running a criminal enterprise anyway, so why do you care about the banks–you’re only worried about the RICO prosecution if the USA cares about you.
If you’re asking “how do I, erm, how would *my friend* get away with it and make money?”, then the answer is–if you’re willing to commit criminal fraud for money, that *was* a pretty easy way to go, but would you rob a bank? Same thing.
Remember, if you rip off a person you might tick them off and they might show up to court and testify. If you rip off a business like a bank, they really aren’t interested in showing up to testify as the losses are already post-ante and it won’t affect their recovery rate.
Its a lot like business who hang signs saying they will prosecute shoplifters. Yes they may say that as a deterrant, but I’d be willing to bet that if it comes down to a full blown trial and not a huge sum of money the business really won’t send someone out to testify. Instead they’re hoping the sign acts as a deterrent and a couple days in jail before arraignment acts as a further deterrent to committed shoplifters to not come back.
Also this kind of mortgage fraud is a lot harder to explain to a jury than shoplifting, or even robbing a bank. Robbing a bank is pretty easy to explain and assign intent and culpulability. Prosecuting these schemes its a lot different. But the sums are far, far higher.
“it won’t affect their recovery rate.”
Should’ve read “it likely won’t affect their recovery rate if the offender is indigent”.
All of these mortgage fraudsters can probably show themselves as being indigent on paper, they just have to remember to take off the gold chains before entering the courthouse and not drive there in their Escalade.
“not drive there in their Escalade”
Or H2. Or 7-series. Depending on which gangsters you’re talking about.
Art-There was an article last year in the tribune on how many gangbangers have switched from stupid street crimes to mortgage fraud because it’s just as lucrative and no jailtime because the bank has to first be able to prove that the transaction was intended to defraud the bank of money. I’m not saying that Americans don’t do it. Interpol is too busy chasing after global drug trafficking to address the growing mortgage fraud problem. So its much easier for a russian/polish/etc to come here for 2 years, just to like a hardworking, decent immigrant to the bank, pull this type of trick and dissapear home to St Petersburg 250k richer.
“So its much easier for a … polish … to come here for 2 years”
I can’t decide b/t:
After two years, I think that polish would smell pretty bad–if it could even avoid teh rats for that long.
or
Were the underwriting standards really lax enough that a sausage could qualify for a loan.
(Yes, I know it was a typo. I like funny typos, and this one was funny.)
So I saw the place after it transferred to bank ownership.
Pros:
Great Ceiling height (Espeically for a 2ns floor)
Open floor plan
double balconies
Heated garage
Floor to ceiling windows
Good size Master decent second bed
Great closets
Great unobstructed view of the city skyline outside front windows
Cons:
The dude who owned it stole all of the appliances
and fixtures
gas station light (could be covered with floor to ceiling shades)
What is worse is the giant billboard outside the back balcony. You can’t hide Anita Alvarez.
I almost bid on it before I found a better deal that I am getting for this one’s listing price without having to replace all of the kitchen appliances.
It would be a good deal for $200,000. That is what I was considering as a bid.
Thanks for the update on the condition of the unit Anon.
The penthouse unit in the building is also going to foreclosure auction- so that one will also probably be back on the market in the next few months as a bank owned property. Stay tuned.
Listing Update;
MLS No: 07055973
Cur. Status: PCHG
Type: Attached Single
List Price: $236,500
Orig. LP: $289,900
I lived in this apartment for 2 years- the only person who has ever lived there. The owner/my landlords were assholes who violated so many tenant laws and conveniently vanished when it was time to return my security deposit. I would not recommend getting involved if you ever have to deal with them. The apartment was great for the most part though- too bad they stole the fixtures and appliances becaus they were all top of the line! The gas station is not a big deal- we had curtains- and it always made for good 24 live entertainment! And you can’t hear 90/94 at all. The upstairs owners are a bit eccentric but good people.
This unit went under contract on 02/03/09. Listing price was $236,500.
Sabrina,
I was woundering how you know that the penthouse unit is going into foreclosure?
I was looking into leasing the retail unit on the first floor and trying to get some information on the location before i moved forward with the space
“I was woundering how you know that the penthouse unit is going into foreclosure?
I was looking into leasing the retail unit on the first floor and trying to get some information on the location before i moved forward with the space”
The listing said it was sold “as-is” and if you look up the public record you’ll see that the bank owns the deed.