Foreclosure Alert: 2-Bedroom in the South Loop: 1250 S. Indiana
Many buyers are specificially looking for foreclosed properties, believing they are the better “deal”.
This 2-bedroom bank owned unit in the mid-rise at 1250 S. Indiana in the South Loop just came on the market.
It is actually priced $6,000 higher than the 2005 purchase price.
The kitchen cabinets appear to be intact (from what is seen in the pictures), as well as at least 1-bathroom. The kitchen appliances are missing.
The listing says a buyer can “purchase this property for as little as 3% down!”
Is this even much of a deal?
It doesn’t appear that the parking is included in the sale, though it appears to have been included in the 2005 transaction.
Ira Mizell at Goldtree Realty has the listing. See the pictures here.
Unit #606: 2 bedrooms, 2 baths, no square footage listed
- Sold in January 2005 for $304,000 (appeared to have included a parking space)
- Lis pendens in August 2008
- Bank owned in July 2009
- Currently listed for $310,000 (parking appears to be available for extra)
- Assessments of $419 a month
- Taxes of $3928
- Bedroom #1: 14×10
- Bedroom #2: 11×10
- Living room: 18×13
- Dining room: 12×12
- Kitchen: 13×8
- Central Air
- Washer/Dryer in the unit
It’s roomier than most 2-2s but it’s still laughably overpriced. South Loop is almost like Miami,it is so overbuilt and there is so much inventory. Additionally, this is a very restrictive building- see the NO PETS rule.
Amazing that the previous owner left the W/D in place after taking the kitchen appliances.
This adds up to a little more than a thousand square feet. Seeing what other comparables in this area are selling for, $250K max.
$310 for an ‘as is’ property? Higher than the original sales price in ’05 – the parking space?
I would say not a cent above $175. This is getting crazy! A few RE ‘experts’ say the market is in the recovery phase, so now agents/banks are attempting to raise asking prices back to what they were a few years ago.
I always have to wonder what ppl who go into foreclosure are thinking when they take their ref and stove? What could 5 yo basic appliances be worth today, $100? Is it really worth the effort to remove them?
A bit OT, but when I first started helping my family in doing rehabs in my late teens, we had this 65 yo man who did all the painting for us. He was an expert painter and could get through a 2/2 in day and the results were outstanding. He had been in the biz all his life and had some great insight into what you could tell about a place based on the paint job it had.
He strongly believed that if a painter would not treat the space behind the appliances as he would a main wall and if the builder was fine with this fact, you could be guaranteed the rest of the place had some serious problems that would not be visible at first glance. Based on my experience, this little tidbit of knowledge seems to hold true and I think of his words everytime I see a half painted wall. Funny.
So what do you think Bob, would this foreclosed, as is prop be worth it for you?
I am a huge fan of the museum park area but I agree 310 might be a little high for this unit. I always wonder how ticked off the people at 1250 that paid a premium for a lakeview must be at the developer. Correct me if I am wrong but doesn’t the museum park development have 3 new buildings (2 around 18th/indiana and one on 16th/Prairie) that have been marinating on the market? I would rather wait for one of those buildings to have 2BDs in the 300s
wtf. If I pay $300k plus I don’t expect to have my washer and dryer out in the living room. Yeah, this place needs to be around $225k or less. Nothing special and a ton of other units to choose from.
I looked at a 2/2 in this building about 2 years ago and couldn’t believe how SMALL the place felt. I would not pay money to live here.
I have friends who currently rent in this building and I would stay far away. All finishes appear to be rental quality. Kitchen Cabinets are Home Depot grade maple or oak. The counters are formica and the ceiling height is low. They are in a corner 2 BR and their actual living space is about 10’x 15′. Any view they once had is now blocked by the new museum park towers. Location in my opinion is pretty good w/ proximity to lakefront, shops, museums, etc.
There is really no end in sight as to how far values will fall in the S. Loop.
Wow, maybe in RN but not the south loop at that price, unless there’s another 500sqft terrace or room they aren’t disclosing.
“unless there’s another 500sqft terrace or room they aren’t disclosing.”
Theres a bunch of gold bars in the fridge.
Seriously these banks are beyond stupid. Heres to hoping this one goes out of business.
“I always have to wonder what ppl who go into foreclosure are thinking when they take their ref and stove?”
My guess would be that if you’re shady AND you are going into forecolsure, you don’t actually take the appliances with you. You can just post an ad in your favorite free classified that says:
“Appliances available for $500 OBO. You must pick up.”
Then you have the free call with no work. Someone shows up with $300 and a truck. Job done.
I agree with everyone the listing is a complete joke.
“Theres a bunch of gold bars in the fridge.”
Good theory but for the fact that there isn’t a fridge…
“Good theory but for the fact that there isn’t a fridge”
ah the good ol morning laugh, thanks jon!
also good tip on the paint Westloop
I dont thing i would ever buy in the south loop, rent in a minute, but buy, its just too unstable there and when i pass through it looks so tumble weed town (empty). I love museum park area the city has done wonders there. but i still wouldnt buy there.
positve note, you can cook, wash laundry, and watch the bears game all in the same room!
positve note, you can cook, wash laundry, and watch the bears game all in the same room!
And for more money than a studio!
Good lord… are all Fannie Mae owned properties this over-priced?
Groove, I’m sympathetic to your concerns as to stability. Nevertheless, you don’t need a weatherman to see which way the wind is blowing there.
Since the ’90s the South Loop and Near South Side have gotten rid of every SRO and homeless or rehab shelter that I was ever aware of. Right now, all but one of the Ickes homes buildings is being torn down. This leaves only the Hilliard homes buildings remaining, and those are (I think) supposed to be elderly only. Restaurants have moved in, along with grocery stores.
Then there is the clearance of land further south for the Olympics, and to get rid of public housing. And between the south loop and hyde park you have the private residence of the President of the United States.
This particular unit is not properly priced given the concerns mentioned here by others. But the whole neighborhood?
I’m been mildly familiar with the area since the early 90s, and VERY familiar with the area since 1996 or 1997. The south loop and near south side have won the last batter left to be won with the end of the Ickes homes. Its Disneyland time from downtown up to the Stevenson Extension, if I’m reading the tea leaves right.
JP,
totally agree with you, the south loop is night and day from 15 years ago. and bronzville was up and coming now has great restaurants that the wifey loves.
the south loop we actually were thinking of moving there while back (thats how i found cribchatter) and might be looking to rent there for a year (most like will not happen)
but its supply and demand and OMG the supply in the south loop is great and slowly prices will reflect that.
it may be a energy saving thing in the south loop but dont see very may lights on in the buildings there.
“if I’m reading the tea leaves right.”
You are not reading them right… I think there’s upwards of 5000 units unsold in just the south loop, and I think more are coming online when the construction finishes up in many other buildings.
I had a friend who moved into a building on 18th and michigan, in 2005ish… was a beautiful new building that was mostly wealthy yuppies, had a nice lake + skyline view. He had some business problems in 2007 and would have only been able to sell his property for 200k less than he paid for it in 05.
He lived in it almost for free (only paying HOA dues) for over a year an a half, he tried to short sell it, he tried loan modding it, but the banks stalled and he eventually said FU and filed a BK, and continued to live in the place for almost a year. I guess problems have been going on for nearly half the residents in the building as I have seen prices plummet upwards of 50%, and he even told me that there’s section 8 tenants in the building now!
And this was a good building with a solid HOA! I can’t imagine the crappy ones.
Sonies, you are only looking at the issue from one angle, and not what is (apparently) being done to help address the problem.
Think of a few other ways this can be looked at:
1. huge budget shortfalls in Chicago and Cook County
2. a mayor bidding on Olympics
3. public housing projects that more-or-less did not do anything positive for Chicago’s image as presented by, e.g., crime statistics.
4. a mayor living in the neighborhood
5. a president living immediately south of the neighborhoods
Daley and company are well aware of the huge number of extra units on the market and coming on the market.
What I’m saying about the tea leaves is basically that I don’t its a coincidence that the Ickes homes are suddenly coming down after all these years of debate.
I agree with you guys and others who are suggesting that prices will come down from stratospheric levels, and largely due to the glut of unsold homes on the market. What I’m suggesting though is that the political establishment in chicago is making a concerted effort to turn the south loop and near south side into neighborhoods where that that glut will be absorbed.
That’s why we are reading about parks at 18th and Prairie, and the end of the Ickes homes, and a new park for Dearborn Park, etc. in the midst of this economy. Long run, I’m more bullish about the south loop and near south side than any other neighborhood in Chicago.
and honest question here…
how can section 8 tenants get into a building like the one you are describing?
1) Call CHAC *section 8*
2) fill out an application
3) get your apartment inspected
4) pass inspection
5) advertise Section 8!
6) tenant uses their housing voucher to pay the rent
7) CHAC direct deposits the money right into your bank account!
Eeeeeek! I just checked the website for CHAC. Though what I read was not explicit, my reading was consistent with what you just posted, so I guess that program allows individual owners to rent out condos in multi-unit buildings (read: hi-rises) to section 8 voucher-holders?
Wow. Just wow.
1. huge budget shortfalls in Chicago and Cook County
Why is this a good thing for the south loop? All those unemployed city workers going to live there after getting cushy severance packages?
2. a mayor bidding on Olympics
I think the olympics will hurt real estate values in the long run.
3. public housing projects that more-or-less did not do anything positive for Chicago’s image as presented by, e.g., crime statistics.
Duh, but It doesn’t matter if there’s still too many units there to absorb, and very little commercial space and parks for people to recreate at for a “neighborhood” to be created.
4. a mayor living in the neighborhood
He’s been living there forever, and his part of the S. Loop is well established. Do you really think he gives a crap about all the empty units everywhere? He probably likes it as its less traffic on the way home from “work”.
5. a president living immediately south of the neighborhoods
The south loop and hyde park are miles and worlds apart, separated by the shitty Bronzeville, Oakland, & Douglass neighborhoods, and does anyone really care where the president lives? I know I could really give two shits about where he has a house that he never lives at.
” so I guess that program allows individual owners to rent out condos in multi-unit buildings (read: hi-rises) to section 8 voucher-holders?
Wow. Just wow.”
Yep. Pretty awesome isn’t it? Beware your neighbors having kids… they might treat you with some “special” neighbors when they move out.
I don’t see how the Olympics will help housing in the SL. Isn’t the plan to build the Olympic Village for use as market-rate housing? In the already over-supplied SL?
That ought to work out great just as things show some stability in the SL in 2016.
“Right now, all but one of the Ickes homes buildings is being torn down.”
IIRC all but five of the Ickes homes are being torn down (that is six of the eleven). Of the remaining five two are to be vacant, leaving three occupied Ickes homes.
Not that Ickes are a factor for this unit–its over a mile away and hoodrats don’t tend to venture far.
“Long run, I’m more bullish about the south loop and near south side than any other neighborhood in Chicago.”
Long enough run and we’re all dead. To assume these McCrapBox developments won’t become the highrises of the future might be a stretch. Just because a developer developed it with cheap financing and a grandiose vision doesn’t mean they can’t or won’t collapse in value to rents locals can afford to pay.
Just instead of the CHA building the highrises developers did and instead of fugliness all around the hoodrats of the future may have floor to ceiling windows.
err
“won’t become the ghetto highrises”
Me: huge budget shortfalls in Chicago and Cook County
You: Why is this a good thing for the south loop? All those unemployed city workers going to live there after getting cushy severance packages?
Me again: What I’m saying is that Daley and Stroger have every possible motivation to get taxpayers into the any vacant housing in the city or county, and the higher the property tax base the more the motivation. They do this right and its a pretty good part of their budget problems. I think they realize this, which is why we are reading about two new parks opening withing a month or so.
—
Me: a mayor bidding on Olympics
You: I think the olympics will hurt real estate values in the long run.
Me: In the long run we’ll all be dead. In the short run, they are using it as one more reason to transform the landscape. I’m sure Daley’s buddies are making out on it nicely, but what can you do in Chicago besides go with the flow? In the area we are talking about, the flow is taxpayers in and pretty much everybody else out.
—
Me: public housing projects that more-or-less did not do anything positive for Chicago’s image as presented by, e.g., crime statistics.
You: Duh, but It doesn’t matter if there’s still too many units there to absorb, and very little commercial space and parks for people to recreate at for a “neighborhood” to be created.
Me: I’m not sure that there is a lack of parks here. You have Ping Tom, Hillary Clinton, the Battle of Ft. Dearborn, something going into Printers Row, Grant Park, 1 or 2 miles of lakefront, the dog-walking park etc etc.
The commercial space thing is, I think, a legitimate concern, but they’ve been finding places to put things like restaurants and bars and supermarkets.
—
Me: a mayor living in the neighborhood
You: He’s been living there forever, and his part of the S. Loop is well established. Do you really think he gives a crap about all the empty units everywhere? He probably likes it as its less traffic on the way home from “work”.
Me: Are you somehow insinuating that “his part” of the S. Loop does not include 1250 S. Indiana?
In any case, my guess is that he’d rather have those units filled with law-abiding taxpayers than pretty much anyone else.
—
Me: a president living immediately south of the neighborhoods–
You: The south loop and hyde park are miles and worlds apart, separated by the shitty Bronzeville, Oakland, & Douglass neighborhoods, and does anyone really care where the president lives? I know I could really give two shits about where he has a house that he never lives at.
Me: Awesome. Does the world have as much interest keeping you happy and improving your neighborhood as it would in keeping Obama happy and improving his neighborhood? Sheesh.
We’ll see who is right about it all in a few years.
“the hoodrats of the future may have floor to ceiling windows.”
Its already happening in the south loop! I’m telling you I wouldn’t make shit like that up.
I think the SL peaked in real dollars back in 06-07, and it likely won’t hit those levels again this lifetime.
However, falling prices in the SL will lead the way for neighborhood improvement by increasing owner-occupancy and getting vacant units filled, so I guess I am “bullish” on the SL too.
“I think the SL peaked in real dollars back in 06-07, and it likely won’t hit those levels again this lifetime.”
Unless you’re 65 years old, I disagree with you 🙂
With this price, this property will stuck until the value goes down a lot….
Not sure how can they be over priced, might be the owner borrowed too much from the bank and now it’s hard to reduce much?
“Not sure how can they be over priced, might be the owner borrowed too much from the bank and now it’s hard to reduce much?”
Huh? This unit is bank-owned. There is no borrowing to limit price reductions.