Get This Bank Owned 2/2 in Roscoe Village for 58% Off the 2007 Price: 2130 W. Belmont
This 2007 construction 2-bedroom unit in a 12-unit mid-rise building at 2130 W. Belmont in Roscoe Village just came on the market.
It is bank owned.
It is listed for $275,100 under the 2007 purchase price.
The listing says the home is eligible under the Freddie Mac first look initiative through 3/23/11.
The unit has all the finishes you would expect of 2007 construction in this neighborhood.
There appears to be hardwood floors throughout.
From the pictures, the kitchen seems to be intact with granite counter tops and stainless steel appliances.
The baths appear to have stone showers/tubs and one bathroom has a double vanity.
This is listed well under any other unit on the street of similar size and finishes.
Is this a steal?
On a side note, notice that the Federal Home Loan Mortgage Corp. had been holding onto this one for 7 months before it was re-listed.
Jim Kennedy at Re/Max Team 2000 has the listing. See the pictures here.
Unit #3C: 2 bedrooms, 2 baths, 1650 square feet
- Sold in March 2007 for $475,000
- Lis pendens foreclosure filed in October 2009
- Bank owned in September 2010
- Currently listed for $199,900 (includes the parking)
- Assessments of $250 a month
- Taxes of $7033
- Central Air
- Washer/Dryer hook-up in the unit
- Bedroom #1: 15×12
- Bedroom #2: 10×10
- Bedroom #3: 10×10
I actually like this. Priced right too, if not 50k under value.
Taxes a bit steep though, appeal?
I like this place, but the taxes are too much. The listing also says cash only?
Hey if you have to live on a main street please dont pay full price to do so.
Really 475k in 2007? Really!
Whats scary is how many other places like this are just out there in the shadow inventory just sitting on bank balance sheets waiting to come to market…
prices like this and I might be dropping “former.” If a 2/2 on belmont was what I wanted then yes this would be a killer deal.
A property gets posted on CC that is actually near fair value and people start throwing around words like “killer deal”.
This is a fair price, not a deal.
To me, “killer deal” means a significant discount to fair value. Maybe something that caps out around 10%+ if you’re thinking about it that way.
“Whats scary is how many other places like this are just out there in the shadow inventory just sitting on bank balance sheets waiting to come to market…”
Yep. This one was sitting on the sidelines for 7 months. There are thousands of other properties like this still out there.
Home buyers to pay more for FHA loans
http://www.marketwatch.com/story/higher-costs-ahead-for-fha-insured-mortgages-2011-03-07
Given how many mortgages are FHA these days I think this will have a detrimental impact on real estate valuations.
“To me, “killer deal” means a significant discount to fair value. Maybe something that caps out around 10%+ if you’re thinking about it that way.”
But, from an o/o perspective, what’s fair value translated into cap rate? 8% seems conservative, to me, if you’re living in it and have an appropriately long time horizon, tho it might make sense for sub-5 year living then converting to rental.
“If a 2/2 on belmont was what I wanted then yes this would be a killer deal.”
Yuppies love their rail transportation options. This isn’t near them on Belmont–too far from both Brown/Red/Purple & Blue Belmont stops.
Maybe an aging hipster who wants to be near Beat Kitchen will buy this for 227k though is my guess. It will have to be an aging hipster that migrated to a real job, though.
To me a killer deal means your neighbor above you who bought at full market value decides to walk away.
“Whats scary is how many other places like this are just out there in the shadow inventory just sitting on bank balance sheets waiting to come to market…”Yep. This one was sitting on the sidelines for 7 months. There are thousands of other properties like this still out there.”
True, but as Clio notes, these properties are not the greatest…location on busy street. Still will pay much more for the same unit on a nice treelined street. High shadow inventory does not equal high numbers of great inventory. I wouldn’t buy this…this in another area perhaps but not at this location (unless I wanted it for a rental).
I think that this sells for around $260k.
To me a killer deal would never involve a neighbor above you.
This one says young professional couple with a car to me.
JJJ – why $260K? It’s listed for $199K. I doubt there will be a flood of over listing offers coming its way.
I bet the bank gets and takes $175K.
If it wasn’t limited to cash buyers, it would go for around $225K. Prices in this area have dropped around 30% since the peak. The $475,000 2007 sale looks like mortgage fraud to me. I don’t know how it ever could have gone for over $350K.
“JJJ – why $260K? It’s listed for $199K. I doubt there will be a flood of over listing offers coming its way.”
it can happen and probably will.
as we have been proven over and over again yuppies do crazy things.
LIKE PAYING $475k FOR A 2/2 ON BELMONT!!!!!!
Roscoe village was totally overbuilt with condos when the real demand is for sfh.
River North Lurker – What price would make this a “killer deal”?
formerroscoevillager – You lived around this area…what would a place like this rent for?
I lived in a decent 2 bedroom 1 bath apartment in this area (a block north and 2 blocks east) in 2005 and 2006 that rented for $1200. I think after I moved out, the landlord was trying to rent it for $1300. I would estimate this would rent for $1,600 including parking.
Assuming this was purchased at list, could be financed with 80% LTV, and the assessed value was brought in line with market value, seems like the total monthly cost would be about $1,400. So if this place rents for $1,600, you’re saving $200/month ignoring opportunity cost on the $40k + closing costs (not much at ~1% in a savings account) plus maintenance. What monthly cost would make this a “killer deal”?
“It will have to be an aging hipster that migrated to a real job”
Does this really happen?
“What monthly cost would make this a “killer deal”?”
Using RNL’s 10 cap, and your rent number, and a guess at reduced taxes, it’d need to be about $125k. With current taxes, it’d need to be about $65k.
““It will have to be an aging hipster that migrated to a real job”
Does this really happen?”
as long as he does the job ironically, its fine
I rented a 1/1 (about 800 sq ft) for $1,110 for the last few years. It was very close to the Paulina stop so this one would not carry any type of premium for tranit-adjacent. Given the fact I have not seen many 2/2s with updates and parking e of western I got a little excited… It would be a haul to the brownline from here but it is exciting to see prices approach the sphere of reasonability.
Just in general, I noticed all these people fear-mongering about how rents are going to go up 10% this year, all over the green zone. I don’t think this is reasonable in any way, as there is so much shadow inventory out there that is not yet absorbed by the market, and lots of people/banks renting out there places is keeping rents down. I think rents will stay flat this year, unless we are talking about highrises, where rents already were much lower due to incentives, and today’s increases are just getting rents back to 5-10% below where they were in 2007 and 2008.
I lived in a 2/2 with parking for $1450 about 3 years ago. It was no where near as nice as this. I think Dave M is close on his estimation, somewhere between $1600 – $1800.
As for the transportation, many people in the area take the #77 Belmont Bus down to the Belmont Red/Purple/Brown stop. Every morning and afternoon it is full of young professionals. There is also the crew that decides to walk down to the Brown Line stop on Paulina – especially in the Spring when the weather is nice.
It’s much quicker to just take the Belmont bus, especially if you have bus tracker on your phone and can time it right. The walk to Paulina is at least 12 minutes, and the brown line is slower than the red line.
Again folks the demand in the area is skewed towards sfh. That’s why condoze are getting cheap.
The MLS sale terms was checked “Cash only” but from the listing remarks it’s clear that it’s open to financed buyers: “PRE-APPROVAL OF PROOF OF FUNDS MUST ACCOMPANY ALL OFFERS. SELLER MAY PAY UP TO 3% CLSG COSTS AND HOME WARRANTY MAY BE OFFERED FOR OWNER OCCUPIED HOMES ONLY.”
The remarks would say “Cash only” if that was the case.
Anyway, how is cap rate applicable to SFHs or condos? Any investor buying a SFH or condo would just buy, fix, and flip…nobody looking for a good cap rate would be buying something like this.
There’s a decent amount of condos on the market right now and quite a few more bank owned ones, all in the immediate area to this one. I would wait a few months to see how prices shake out.
“Again folks the demand in the area is skewed towards sfh. That’s why condoze are getting cheap.”
I think the lesson learned is that there’s no point in buying a condo. Most people in Chicago ultimately want a SFH and will just rent until they can get that. Little point in buying a glorified apartment.
Quite a few of the bank owned properties are not yet on the market, which would further hurt prices. Yeah, SFH’s in the area are what is in high demand.
Let me rephrase that…in some neighborhoods condo/co-op ownership is more accepted..Gold Coast, for example. But a lot of neighborhoods where SFH is the dominant housing stock, condos just don’t make a lot of sense.
“Yep. This one was sitting on the sidelines for 7 months. There are thousands of other properties like this still out there.”
Aren’t there *always* many thousands of shadow properties driven by completely unrelated factors to your doomsday point — divorces, corporate relos, downsizing, upsizing?
I know you think the REO shadow inventory is ominous and all, but it seems to me that it’s just an additional layer on top of what is and always has been a “shadow” inventory. Hell, half of the north shore of Chicago is waiting to sell so they can downsize or move to Florida.
Besides all this, why would there be a significant (25%) price delta between REOs and regular way sales if people didn’t treat/view/accept them differently? Since there is such a spread, it seems to suggest they aren’t setting the market.
The number of shadow properties is much higher now than it was in 2007 and 2008. It just took a few years to accumulate them, and now it will mute any appreciation, especially on condos that aren’t extremely well located until the shadow inventory reaches more normalized levels. I wish someone would do an analysis by each half mile by half mile, to educate the public as to how many properties exist, and the proportion that are in foreclosure, are bank owned, are for sale, were purchased from 2005-2007, etc.
I think the fact that many REO properties have been held this long suggests that long “shadow” periods are a result of the recent decreases in housing prices, not a predictor of a new drop to come. Real estate has very low market liquidity, so it’s not that surprising that participants are not electing to sell when the price they can get for their property is at a recent low.
“I think the lesson learned is that there’s no point in buying a condo. Most people in Chicago ultimately want a SFH and will just rent until they can get that. Little point in buying a glorified apartment.”
I’ll take a nice apartment over a SFH right now at my point in life – buy over rent – for several reasons…I think the lesson learned is that you shouln’t be generalizing and stereotyping for a large city.
“I think the lesson learned is that there’s no point in buying a condo. Most people in Chicago ultimately want a SFH and will just rent until they can get that. Little point in buying a glorified apartment.”
I agree with A-Fed, there are many reasons why some people may prefer an apartment/condo over a SFH. One being maintenance-free living. From a sqfootage perspective, there are many many townhomes, duplexes that are just as big, if not bigger, than SFHs in the city. In addition a condo is typically more affordable than a SFH. Not everyone will be able to afford a SFH in their lifetime, that doesn’t mean they shouldn’t ever own in the city.
Here’s an isolated datapoint for the group: a friend who rents a house in Logan just had the landlord ask for a $100 per month increase.
This clearly shows all rents are not flat or going down.
Rents will vary by block. It’s also possible that some rents were below market to begin with. Also certain areas will become in higher demand than others.
You are have the wrong idea about shadow inventory. Most of the shadow inventory is not so much empty units being withheld from the market by the banks. the shadow inventory is the neighbor next door with a loan modification, or the guy down the block who hasn’t made a mortgage payment in two years, or longer, or the owner who went a year without paying, got a loan mod, paid for 8 months, and then stopped paying on the loan modification 10 months ago still with no foreclosure. the internet is full of stories of owners living rent free for years. We live in a judicial state and it can take years to go through a foreclosure. B of A said it takes an avearge of something like 500 days to complete a foreclosure. i guarantee you it’s longer than 503 days in IL.
Shadow inventory is also, like JMM says above, the empty nesters who want to move to florida but need some gen X/Y to pay for their retirement ($650k for a dated and mortgage free 1960’s split level ranch west of green bay road? GET REAL!!!). these properties will all sell, in time, and it’s that time spent in the shadow inventory that is dragging on prices.
“the internet is full of stories”
you should have stopped right there
it’s like that quote I always post about 1929-1933, stating taht the smart money jumped in to buy stock deals (for every seller there is a buyer) and then only to find out that 12/18/24 months later their stock purchases were worth only 1/2 to 1/4 of the purchase price.
That’s exactly what we’re going through right now with real estate, except due to teh illiquid nature (And shadow inventory), it’s going to take longer than three years to reach the bottom, it’s going to take a full decade (we’re in year four? five if you count 2006); or longer to recovery;
so the *smart* money jumps in today and only to discover that tomorrow the purchase didn’t look so smart. it requires an extraordinary amount of patience to wait out this bear market.
Disregard the stories of homedebtors living mortgage free for years to your own peril.
“#Sonies on March 14th, 2011 at 12:08 pm
“the internet is full of stories”
you should have stopped right there”
“I think the lesson learned is that there’s no point in buying a condo. Most people in Chicago ultimately want a SFH and will just rent until they can get that. Little point in buying a glorified apartment.”
Sure, I’d love to have a SFH in the city. But I have little interest in visiting, let alone living in, the areas in which my budget would permit me to buy a SFH. So for now it’s a glorified apartment for us.
“Disregard the stories of homedebtors living mortgage free for years to your own peril. ”
oh , i’m reeeeal scared!
All this mortgage mess makes me want to just pay cash for a property or 50% down and not have to worry about it much. Save up for an extra 5 years and buy, especially considering the lack of increases in rents on an inflation adjusted basis. I read a good article about 15 year mortgages and how it’s better to take one of these out when buying because of all the interest you save over the life of the loan.
You save money on interest with the 15-year fixed if you just make the require payaments, but I believe there’s not a huge difference in total payments if you were to get a 30-year fixed (at roughtly half a percent higher rate) and make the same payment (i.e., monthly payment plus additional principal payment). There’s some value to having payment flexibility with the 30-year loan.
I think if you are going to stay in the house for 15 years, it’s probably worth it to go with the 15 year loan, assuming you can handle the additional monthly payment amount. It would be sweet to own the property free and clear so much sooner, expecially when considering that I hope to be retired in less than 30 years, and wouldn’t want that hanging over my head at that point, or possibly even delaying my retirement. I would probably have to sacrifice in the early years (3-5 years), but it would pay off in the long run because the interest tax deduction won’t affect me much, when filing a joint return as the standard deduction eats up most of it.
You can always make a 30 year a 15 year mortgage simply by paying extra, but you can’t make a 15 year a 30 year. $300k @5% for 30 years is $1610. $300k @ 4.0% for a 15 year is $2219.
You can also have a HUGE impact on paying off your mortgage quickly by simply making a bi-weekly payment or one extra principal payment per year. Cuts a typical 30 year down to 23 years.
If you can swing a 15 year payment, it is definitely a good option. When the equities market was booming, a lot of people said you are better off investing your money elsewhere instead of paying down the mortgage. If you are very disciplined it can still be better to invest elsewhere given that rates are so low, but I think it really depends on your place in life. Would you rather have less mortgage debt or more liquidity?
“so the *smart* money jumps in today and only to discover that tomorrow the purchase didn’t look so smart”
But you are viewing property strictly from an investment point – as a stock – which isn’t the case, and moreover based on a set timeframe of ten years. People need homes. They do not need stocks. So yes HD, you are correct to an extent I feel, but if you get a good enough price NOW, then IF the rest of the market drops, you will be level with the playing field. Consequently, IF the housing market comes roaring back (doubtful), you made a very wise decision. Basically HD, you are planning for no inflation and continuing depreciation in *quality* assets by your plan, bold if you ask me…but GL none the less (seriously).
If you are looking at real estate on an inflation adjusted basis, you probably won’t make much money in the next 5 years. But when looking at real prices, they will probably appreciate slightly, especially if inflation trends to 4% from the near 0% of the last 2 years.
The 15 year loan is good for most people because it’s forced savings. Especially if you can swing the payment and already have a good emergency fund of 6 months or more in reserve. It’s easier to refinance a 15 year mortgage after 3 years of principal amortization than a 30 year after 3 years, because you’d have more equity in your place.
I meant nominal prices above.
I for one like condos and doorman. We have a SFH and my husband travels quite a bit and I don’t sleep well when I am alone and wake up from every little noise.
People have different needs and preferences. Also I know a lot of older couples in our in town condo that sold their SFH after their kids moved away and are more than happy in a 2/2.
“It’s easier to refinance a 15 year mortgage after 3 years of principal amortization than a 30 year after 3 years, because you’d have more equity in your place.”
That’s true but I don’t think anyone would be wise to get a loan right now with the intent of refinancing down the road. If rates were to fall again, it’s unlikely that the fall would be significant enough to make refinancing worthwhile. If rates go up, the only reason to refinance is to take cash out but the days of your house being an ATM are over.
“You can also have a HUGE impact on paying off your mortgage quickly by simply making a bi-weekly payment or one extra principal payment per year. Cuts a typical 30 year down to 23 years”
We started by equitizing 50% of the monthly payment as a side principal payment. So, in made up numbers, if the total payment (ex. taxes) was $4,000, we’d cut a $2,000 check each month. That brought total repayment to 12-13 years based on our interest rate. From there, a few bonuses got sunk into the mortgage and we were done in 7 years. Some people are wealthy enough to pay off or have reserves in excess of their mortgage, but its easier psychologically to do it out of cash flow.
We’d have never wanted a 15 year mortgage. 30 years gives you the right, but not the obligation, to pay off on a faster amort schedule. Sure interest rate is marginally lower, but interest rates are low empiracally. Paying off your mortgage takes discipline and there is no silver bullet.
Just like with a 401(k) — you get used to the cash outflows and live on the rest. Its not for everyone but it can be done.
So if this place is a decent deal, what about this place?
http://www.zillow.com/homedetails/2238-W-Belmont-Ave-UNIT-4W-Chicago-IL-60618/65398362_zpid/
It is a couple of houses down. It sold for $530k in 2007 and then recently for $165k.
Can someone look up what type of sale it was (foreclosure, maybe damaged)?
I agree with miumiu.
As the baby boomer generation starts to reach retirement, we’re going to see a strong uptake in 2/2 condos, especially in convenient locations that allow our generation to cut back on auto use. We’ve just bought a short in Museum Park for exactly this reason, although we’re still primarily resident in a home elsewhere. And a 2/2 allows for adequate space while sending a clear message to deadbeat kids that they ain’t moving back home.
Aren’t the aging boomers looking primarily in places downtown? Are seniors moving into walk-up buildings in neighborhoods like Roscoe Village?
Regarding that place at 2238 Belmont, see this: http://www.redfin.com/IL/Chicago/2240-W-Belmont-Ave-60618/unit-4W/home/12688918
There were two transactions or something. The price wasn’t under 200K.
This is so funny…lol
“And a 2/2 allows for adequate space while sending a clear message to deadbeat kids that they ain’t moving back home.”
C,
No way that sold for 160k or that would be the steal of the year.
“There were two transactions or something. The price wasn’t under 200K.”
There’s a mortgage for ~$360k, so, yeah, not a sub-$200k sale.
Redfin sez sold for 448k on unit 4W. Hope the new happy owners have great scuba gear cuz this featured listing although not a 3/2.5 like 2240W Belmont unit 4W, is gonna be a comp killer for the area if it sells for anything sub 280k.
Yea, even the thought of a mortgage makes me queasy:
http://www.washingtonpost.com/wp-dyn/content/article/2011/03/04/AR2011030404615.html
“Aren’t the aging boomers looking primarily in places downtown?”
Yes. Big buildings with pools, exercise rooms, doormen and lots of restaurants nearby.
“Are seniors moving into walk-up buildings in neighborhoods like Roscoe Village?”
No. Stairs and no amenities.
“And a 2/2 allows for adequate space while sending a clear message to deadbeat kids that they ain’t moving back home.”
Love this.