The Bucktown Vintage Cottage: 2347 W. Moffatt
We’ve chattered about a few Bucktown cottages recently. This 3-bedroom at 2347 W. Moffatt was built in 1893.
It has just been reduced $20,000.
It has 3 bedrooms, a new paver patio, a recently finished lower level and skylights.
The house also has central air and a 2 car garage.
Will it sell for over the 2005 purchase price?
Greg Whelan at Redfin has the listing. See the pictures here.
2347 W. Moffatt: 3 bedrooms, 3 baths, 2 car garage, no square footage listed
- Sold in November 1999 for $213,000
- Sold in July 2005 for $555,000
- Originally listed in May 2009 for $629,500
- Reduced
- Currently listed for $609,500
- Taxes of $5457
- Central Air
- Bedroom #1: 13×13
- Bedroom #2: 13×13
- Bedroom #3: 9×11
At least 100k overpriced. At least.
Dear god overpriced!
Kudos to the realtor though for attempting to not make that half upper floor with the angled ceilings starting at about 4′ high look more spacious than it really is.
Is this place a victim of death by heloc? Short sale in the future?
$444,000 first mortgage plus $116,000 second mortgage is:
$560,000
Considering that they bought it for $555,000 they subsequently borrowed more than the purchase price.
In hindsight what a terrible idea!
They should have bought $300,000 one bedroom in River North or Streeterville. Those are the only units that appear to hold their value!
Looks like they financed the closing costs. And 300k 1br’s are pretty outrageous to me!
And now our taxpayer dollars are being used for loan workouts and loan mods for specuvestors like this who paid 560k with entirely the banks money for a small cottage in Bucktown.
Is that plywood under the main window in the front?
This will not sell for anything near 560k now that people need to have skin in the game to qualify for a mortgage. Imagine that. I hope they had fun with the house as ATM strategy and enjoy the government handout coming their way.
ugh. fugly exterior.
50% of loan mods/workouts fail within the first 6 months and 75% fail within a year. The loan mods that decrease monthly payments have a 1 in 5 chance of failing within 6 months. 98% of loan modifications and workouts increase the principal balance, lower the interest rate and increase the duration of the loan. Only 2% have a reduction in principal balance or, as the new PC way of calling it, a “deferred interest set aside”, which basically means the balance is out there, it’s owed, but they ain’t going to do anything about it for the time being. They only do that on the most underwater properties like if you owe $200,000 on a craphole in Maywood worth only $50,000 but actually want to live there. Often times on properties like these they just forget about the second mortgage too….its out there, you owe it, but everyone acts as if it doesn’t exist anymore…..
Furthermore, only 3% of all delinquent loans 60-90 or more days late have received a loan mod or workout so far…with failure rates as high as 75% the banks are choosing to foreclosure rather than work with the borrower….loan mods just delay the inevitable….
Who the hell would buy this house for $569,000 in this environment? These people are FB’s.
“Who the hell would buy this house for $569,000 in this environment?”
If it was under 410k some might with an FHA loan. Remember 3.5% of even 410k is only 14k. Even a financially illiterate (re: idiot) can save or get ahold of that kind of money somehow.
But yes this far above 410k…sorry but the floodgates are closed to the idiots. Real downpayment required = SOL for this seller.
Why would an agent even agree to list at this price? Complete waste of time and resources. It would be really nice if more agents had the cojones to refuse listing unrealistic sellers’ homes.
maybe the agent hopes it’ll eventually turn into a short sale.
“Complete waste of time and resources”
Its a numbers game. Lets assume there is a 1% chance this thing sells for close to ask. If the agent can accumulate 100 of these fanciful listings they get a sale.
In that model agent commission doesn’t seem that unreasonable if they’re dealing with many sellers each of which have a very low probability of actually resulting in a sale.
17% appreciation for Bucktown from 99 to 05? Either some major rehabbing done here (didn’t check) or mortgage fraud.
It seems to be a pretty decent house, but those sales figures are way off. Regardless of improvement costs, it seems a huge jump on each sale. It would def have to come down below the 2005 price to move. Sorry seller!
Any agent worth their commission would come armed with up to date info in order to persuade the seller to come to within reasonable price range. This more than anything shows the agents inexperience in their job as they go along with whatever the seller wants. Even the most stubborn sellers will be willing to negotiate the initial price when presented with reasoning about why their asking price is over the norm.
The problem is likely that the sellers can’t bring money to the table to sell. They have to ask for more than the 2005 price.
well then unfortunately its time to ask the bank for a short sale.
Anyone know what the standard practice is when there are 2 mortgages? Do you get the 1st mortgage to agree to the short, Is the 1st mortgage holder relunctant to agree to a short sale if the 2nd lein holder is not agreeing to a reduction. Just curious on the logistics.
There is no standard practice from what I’ve seen; it’s more like every lender for themselves. If the 1st and 2nd are the same lender or servicer it’s a heck of a lot easier to get a short sale. If there are different lenders the 2nd isn’t likely to voluntarily release its lien and instead lets the first take the property into foreclosure. Short sales, at least around here, are still a small niche market although they’re becoming larger in cases where the lender doesn’t want the property back, like in bad neighborhoods or for properties in bad shape. Its so much easier for buyers to wait for the REO to hit the MLS rather than wait for the bank to approve a short sale.
“Anyone know what the standard practice is when there are 2 mortgages? Do you get the 1st mortgage to agree to the short, Is the 1st mortgage holder relunctant to agree to a short sale if the 2nd lein holder is not agreeing to a reduction. Just curious on the logistics.”
It’s a stretch to call it Bucktown. Even the listing has it as Logan Square.
“Anyone know what the standard practice is when there are 2 mortgages? Do you get the 1st mortgage to agree to the short, Is the 1st mortgage holder relunctant to agree to a short sale if the 2nd lein holder is not agreeing to a reduction. Just curious on the logistics.”
Standard practice is that both lien holders must agree to the short sale. Usually, the 2nd lien holders will take pennies on the dollar in a successfully negotiated short sale. i.e. ~$3000 on a $100k note. While this may sound crazy, the 2nd lien holder gets nothing if the property goes foreclosure.
There was some talk about short sales in the earlier posts. Understand that a short sale will never be approved without mortgage payments being missed and a genuine, provable hardship (job loss, divorce, etc.). The owner cannot get a short sale if they don’t like the fact that they are upside down on their loan or their home equity interest rate is changing….
I think this place could have a chance. Especially considering that duplex downs in condos can go for around this price point. I think this might get some takers in the 530-550 range in this market.
I think it might sell closer to ask if it had more curb appeal. The interior is fine, but that exterior needs some help.
In this terminally ill market there will always be more sellers of $500k single family homes than buyers. SFH homes in the exurbs and Elgin are going for less than $100k and in some suburbs for less than $200k. In the long run there really isn’t that much justification for a $550k house in a gentrifying neighborhood except that ‘it’s in the city’ as if that’s the panacea to all of the housing market’s problems. In this long run this will return to a $350k house with a 20 or 25% down payment for a young conservative yuppie family with $130k+ yearly dual income; not a $555,000 house with 100% financing with god only knows stated income. Not today, not tomorrow, but long term, think 2011 2012 and beyond. There’s been a fundamental change in the market and the $500k house, which is really just the californication of the hipper chicago neighborhoods is long over.
No way HD,
The days of house appreciation are here to stay. Why work a normal job when you can just sign your John Hancock on a mortgage document and sit and wait for appreciation? You can even get fat eating McDonalds in the meantime. Asset bubbles FTW!
Where else can I fatten myself until I’m morbidly obese and watch Jerry Springer at the same time? God bless America!
And it’s on a small lot 25×100; there should be a discount for this.
Listed $575k