“Hurry Before It’s Gone” in 1620 S. Michigan in the South Loop
We’ve chattered several times about the foreclosures and distressed sellers in 1620 S. Michigan in the South Loop.
This 2-bedroom unit has been on the market for 9 months but the listing says you should “hurry” before it’s gone.
This unit is also subject to lender’s approval and has been reduced by $70,000.
It has hardwood floors, stainless steel appliances and views of Michigan Avenue.
Is the South Loop market reaching the point where even the reductions aren’t enough to lead to a sale?
The last reduction on this unit was 5 months ago.
Kaloian Kouzmanov at Top Realty Group LLC has the listing. See the pictures here.
Unit #409: 2 bedrooms, 1 bath, 900 square feet
- Sold in August 2006 for $294,000 (parking included)
- Originally listed in February 2009 for $300,000
- Multiple reductions
- Reduced to $230,000 (parking included) in June 2009
- Currently still listed at $230,000 (parking included)
- Assessments of $280 a month
- Taxes of $3625
- Central Air
- Washer/Dryer in the unit
Let me be the first to say: yuck!
I jumped to the photos, excited to see a 2 bedroom priced in the low 200s; however,when I saw the photos I knew why – YUCKY! My goodness this place is ugly. But the huge, HUGE reduction? Wow – that is 20% reduction.
This place is just an expensive apartment. I don’t see any benefit from owning this, just increased responsibilities.
This condo desperately needs to be decorated and staged! Could this place have never been lived in (Energy Star tag is still on the washer/dryer)?
A few hundred spent on paint and appropriate IKEA furnishings would at least give the illusion that this place was livable!
I used to live in a college dorm room that resembled this place. Nobody was hurrying to get into it when I moved out.
$145k, tops.
uhmmm, where are you supposed to cook? The only useable counter space is above the DW and about 2 sqft.
Seriously. pathetic.
I wonder how low all these “I bought a dorm room just to say I own and you don’t” condos will go? The S loop seems to be full of them.
200+ days on the market and the listing says ‘hurry’. Somethings not quite right here.
Geez, one more ugly, concrete-shoebox apartment shoehorned into the side of a fugly new high rise, replete with open kitchen, windowless bedroom with wall open at the top to admit the light, and concrete ceilings. How many places like this were built, anyway?
$230K sounds cheap until you consider that it’s not selling even with the $8000 housing credit that you can get at the closing to apply to your down payment, or the E-Z FHA loans you can get for 4X your gross income, with $500 down and $8000 at the closing.
At some point we’re going to have to discontinue the tax credit, the howls of the real estate industry notwithstanding, and interest rates will have to go up, which they should have already. What will happen to prices then?
“I wonder how low all these “I bought a dorm room just to say I own and you don’t” condos will go? The S loop seems to be full of them.”
Good question. What I don’t like is when the obnoxious class/status oriented people from the ‘Sloop’ come up to party in my neighborhood. They’re not all bad but there is definitely more snobbery among them than the general population.
I don’t live in the ‘Sloop’ because its a boring hood with little amenities aside from being closer to downtown. Apparently a lot that live there agree that the nightlife is lacking by their continued presence in other neighborhoods.
does the “hurry before its gone” refer to hurry before its torn down?
“Hurry before its gone!” Because generic McCondos with no style or unique features in short-sale status are just SO in demand!
South Loop after dark is about as lively as Rogers Park.
“South Loop after dark is about as lively as Rogers Park.”
Without all the shootings, because… its a ghost town!
Oh and this place would sell quickly if it was in my building, since identical units to this sell for around 250k, but 1620 S. Michigan… bleh.. windy god awful hike to the El, The bus is PACKED, far to the Jewel. and you really can’t walk to the loop unless its a nice day.
“even with the $8000 housing credit that you can get at the closing to apply to your down payment”
Laura,
Are you sure about that? I haven’t read anywhere where you can use the 8k as a down payment.
It’s a 900 sq. ft. two bedroom. That’s about all I gotta say.
I love that the agent calls it the “booming” South Loop. That must be the sound of implosion.
CSal, I completely agree. I’m sure that’s why there aren’t many interior shots — couldn’t find a way to make a 900 sq ft two bedroom look anything but cramped.
This unit and Vision on State have one thing in common… They should never have been built.
Not sure what rents are in the south loop, but this unit seems close to rent parity. The $8,000 first time buyer incentive cannot be used as a down payment, as you need to file a form with the IRS to get your money after buying. There are not many tax advantages at this price point for a couple.
Some lenders are managing to make that $8000 available at the closing, I suppose by tacking it onto your loan.
I called the lender whose number was posted out of curiosity, and this is clearly how it’s being done.
You come to the table with $500, and the $8K is remitted to you at closing to make the down payment.
Evidently, there are many ways to bend the rules to make it very easy to come in with no real cash.
And the program costs $43,000 per marginal home sale and is ripe with fraud. *shocking*
http://online.wsj.com/article/SB125599683058895389.html
Only the government can bloat the cost of an $8,000 tax credit to $43,000.
This place is pricey for 230k…normally a 2 bedroom in this hood would definitely move at this price, however 900 sq. feet is tiny. I live in a 1 bedroom on 13th and indiana, and its approximately 900 sq feet. you can get a decent 2/2 in my building for the 290’s and you’ll have 3-400 more square feet and be a helluva lot closer to the el. I used to live on 18th and michigan and that end of the south loop is horrible and boring – outside of a kroll’s and a few convenience stores there isn’t much going on.
this isn’t a horrible oppurtunity to rent this unit out though….if they end up selling at 200k, this place could probably rent for 1500 w/parking pretty easily.
* however, many units next door at 1720 with the same disastrous layout
( basically no living room, the kitchen counter is inches from where you’d put a couch ) are on the market in the 200k range…so they’re definitely smoking something a lot stronger than these folks.
* i forgot to add, i was referring to the 1 bedrooms at 1720.
WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.
http://www.hud.gov/news/release.cfm?content=pr09-072.cfm
FHA has created a program to monetize the tax credit at closing.
Yesterday the IRS admitted that they are investigating over 100,000 cases where they suspect fraud with the tax credit.
Not only that, but most people don’t realize the risk they take using the tax credit. If the home is no longer the primary residence (they move, get foreclosed on, etc) the entire amount is due on their tax bill in that year. How many people that would use the tax credit can handle an extra $8,000 added to their tax bill if something goes wrong? Risky behavior indeed.
Ahh continuing to make owners out of people who live paycheck to paycheck. Who would’ve thought good ol’ Uncle Sam would be interested in subprime lending?
There’s been a lot of yap about extending the tax credit and increasing it to $15K.
But the results of the tax-credit-enabled FHA E-Z lending rampage are coming in and they are not good. 2007 vintage FHA loans have a combined delinquency and default rate of 24%. 2008 vintage, 20%.
Most people believe the FHA will have to be bailed out in a couple of years, and we can see why.
Forgive these questions, but the current $8K tax credit isn’t necessarily tied to buyers with FHA loans, correct? Is it more that buyers that are qualifying for the $8K credit are those most likely just “starting out,” i.e., without a significant down payment, and are thus drawn to an FHA loan?
Correct on both counts, MrsB. The tax credit is currently limited to first time homebuyers (or those who have rented the past two years, really) and is capped at 75k income for an individual or 150k income for a couple with quick phase outs.
The FHA program is for any property and borrower that qualifies. The guidelines for borrowers are fairly lenient, even though many in industry say they are better than no-doc loans because they actually verify something:
* A two year history of employment in the same field is required
* If you are a recent college graduate, your last two years of schooling can be used if you are currently working in your field of study
* Credit Scores normally need to be above 620 for Conventional financing-580 for FHA and VA looks at a case by case basis
* If no credit history exists-you may use cell phone bill, cable bill, previous rental history, etc. to establish a “pattern” of good credit payments
* Proper ID as defined by the Patriot Act (State Driver’s License or Birth Certificate along with a copy of your Social Security card required)
* Debt Ratios should be below 36/46
Thanks Bob, I appreciate the info.
“Yesterday the IRS admitted that they are investigating over 100,000 cases where they suspect fraud with the tax credit.”
Tipster, For a program that created approx 300,000 new buyers? Good thing the hopium eliminates the need for an efficient govt.
“There’s been a lot of yap about extending the tax credit and increasing it to $15K.”
Laura, I have read analyses that indicate the actual cost of a $15,000 credit will rise to $140,000 for each new buyer.
If that occurs, we will need a shift from snorting to mainlining hopium to make it all good.
Perhaps Joe Zekas can share with us how this CMK development (like their others) was in any way “affordable” to the suckers that the developer and its shills unloaded these on?
For laughs check out MLS 07372957. The realtwhore is pitching it as a 1,200sf unit in the MLS without parking for 249k. With parking its 279k. The price per square foot per the realtor is: $208. Its a 2/1.
But actually per the building floorplans its really a 788sf unit with a 500 square foot terrace.
Including parking and not counting the terrace the real cost per square foot skyrockets to: $354. LOL. $354/sf for a 788sf McCrapBox whose walls don’t even goto the ceiling in the second bedroom.
http://www.1620michigan.com/site/epage/19456_484.htm?backtoitemid=19434_484
Hurry before what is gone–the appliances?
This place, along with its bigger brother, 1720, are the foreclosure poster children for the South Loop.
Time for a South Loop walk of shame update regarding 1620:
Unit Price Floorplan Parking? SF PPSF
718 119,444 1/1 N 613 $195
1023 128,900 1/1 N 637 $202
421 132,900 1/1 N 607 $219
723 159,000 1/1 N 637 $249
813 159,900 0/1 N 537 $298
1217 164,900 2/1 Y 797 $207 (Grg prk 30k xtra, PPSF=$244)
409 187,000 2/1 N 860 $217
1025 189,000 2/1 Y 806 $235
720 210,000 2/1 Y 788 $267 (Prk is outdoor spot)
1109 240,000 2/1 Y 878 $273 (Prk is garaged)
712 245,000 2/1 N 893 $274
324 249,000 1/1 N 814 $306 (Has 324sf ter, PPSF w/ter=$218)
922 264,999 2/1 Y 922 $287 (Grg Prk 34.9k xtra, PPSF = $325)
501 274,500 2/2 Y 1,085 $253 (Grg Prk 25k xtra, PPSF = $276)
1122 280,000 2/1 Y 922 $304 (Not sure if grg or outdoor spce)
702 284,900 2/2 Y 976 $292 (Grg Prk 35k xtra, PPSF = $328)
1005 369,000 2/2 Y 1,278 $288
All square footages are from the developer’s website, not the MLS which tended to overstate by ~40. Also unit 324 was listed as a 2/1 in the MLS, its not. Its a 1/1.