Foreclosure Alert: Who Needs a Kitchen? 1620 S. Michigan in the South Loop
We’ve seen several condo units that have been missing their kitchens before.
This one at 1620 S. Michigan in the South Loop is not only missing the kitchen, but it looks like the toilet and bathroom sink is missing in at least one of the bathrooms as well.
But if a little renovation doesn’t scare you, is this a deal for a 2/2 with parking in the South Loop?
It is the cheapest 2/2 currently on the market in the building.
Henry Jones at Jones Realty Company has the listing. See more pictures here.
Unit #714: 2 bedrooms, 2 baths, no square footage listed
- Sold in August 2006 for $329,000 (with the parking)
- Bank owned as of April 2009
- Listed in June 2009 for $260,900 (parking included)
- Currently listed for $260,900 (parking included)
- Assessments of $374 a month
- Taxes of $4223
- Central Air
- Washer/Dryer hook-up in the unit
- Bedroom #1: 13×10
- Bedroom #2: 11×10
- Living room: 15×13
- Kitchen: 11×9
- Den: 8×4
NO NO NO
$180k max
Hell no that’s not a deal, you can get a 2/2 with full appliances & the works + a balcony + more sqft in 1545 S. Michigan for $250k right now.
I agree, not yet worth it. Whatever this thing is worth normally-i.e. a regular sale in regular condition, there is a deduction for the fact you are purchasing a foreclosed property. Then substract out the reno costs, holding cost during, and say another 20% of that for dealing with the reno & risk.
So I’d say (ball park): $230 – $30K – $4K – $6K= $190K. Just guesstimates so don’t berate me over a $grand here or there.
Why are law enforcement and the banks not aggressively pursuing felons such as the previous ‘owner’ (really a specvestor)?
Looks like unit 1214 on the top floor sold for $272.5k back in October 2006. Its now 2009 and our economy has collapsed along with real estate valuations and this bank thinks they’re going to get a buyer for a unit five floors below with no kitchen and no toilet for $262k?
This will sell to an investor for around 175k. If it hadn’t had its kitchen and toilet removed a yahoo could get financing and it would sell for closer to 250k.
Lenders: what are the implication to the type of loan, and loan options, that you can get due to this place needed significant reno and not being livable-no kit and no bath
Can you even get a mortgage on a unit like this? You’d have to pay cash to the place, then pay to “fix” all the missing stuff.
No thanks, but don’t discount the wealthy with a kid moving to Chicago. That maybe a cash buyer with ability to improve the property and give it to the kid.
“Why are law enforcement and the banks not aggressively pursuing felons such as the previous ‘owner’ (really a specvestor)?”
Primary for the banks is the cost–good money after bad.
Primary for “law enforcement” is politics–chasing after tose who “lost their home” makes politicians sad, secondary is cost and third is that there are many people (including you, Bob) who think it’s what the banks “deserve”, which I guess plays back into politics.
Tom,
It is possible to get financing as a non-investor on a place like this. On Gary L’s website he has an article about 203(k) loans. You should take a look:
http://blog.lucidrealty.com/page/4/
Thanks Bob, I had heard about the 203(k) before but i do not have a full understanding of them. Will check out the link.
I’d pay the asking price…plus probably…
I would offer $180 to the seller for the place and the remaining $80k going towards renovation costs, both seen and unseen.
Units with no kitchen and/or baths at all scare me. I know, from experience that there is always more going on behind the walls or under the floor that will end up surfacing as problems later.
I dont think its worth more than 180 without Kitchen/Bathroom being finished but having a missing kitchen/bathroom isnt a big deal to me. My father and I built out our entire basement, plumbing, bathroom, electrical etc. Just hard work, but nothing terrifying.
ME,
Not sure a wealthy kid in Chicago is interested in the South Loop. Wrigleyville, Gold Coast more likely.
Wealthy people buying property impulsively/irrationally does happen, but at $260K in this location & in this condition, this bank will most likely be waiting a long, long time for a buyer…
Toilet & sink available — $30k extra 🙂
parking included. Won’t go below 200k. There are enough scmucks out there who will pay this kind of money.
Unit 1107 just came on the market two days ago and its a smaller (970sf) 2/2 foreclosure WITH a kitchen and cabinets, balcony (& parking space) with an ask price of 220k.
The bank that owns unit 714 looks like they really don’t know the market. Yeah its 52sf bigger at 1,022, but its not even close to competitive with 1107.
“parking included. Won’t go below 200k. There are enough scmucks out there who will pay this kind of money.”
Ned we’re already seeing multiple foreclosures in this building and prices are plummeting. The key question is what is the relative number of schmucks vs. the number of foreclosures?
Unit 714 and 1107 sold last week… don’t know the details yet.