Lincoln Park Single Family “Short Sale” Reduces $199K: 2533 N. Greenview
We last chattered about this “short sale” 5-bedroom single family home at 2533 N. Greenview in Lincoln Park in September 2008.
See the pictures and our prior chatter here.
It is still on the market, still listed as a “short sale” and the listing says it is still currently rented for $5,000 a month.
But it has been reduced by $199,501 and is now listed for $8001 under its 2006 sales price.
Here’s its history again:
2533 N. Greenview: 5 bedrooms, 3 baths, 2 half baths, 2 car garage, 3000 square feet
- Built in 1996
- Sold in August 2006 for $997,500
- Originally listed in July 2008 for $1.25 million
- Was listed as a “short sale” on the MLS in September 2008 for $1.189 million (although the Craigslist ad said $1.15 million)
- Reduced numerous times
- Currently listed for $989,499
- Taxes of $10,523
- There is still NO lis pendens pending on the property
- Listing says it is currently rented for $5,000 a month
- Vista Way Realty has the listing. See more pictures here.
I thought a short sale meant that the owner owed more on the property than what it was worth and the bank was willing to forgive part of the loan to make a deal.
By definition this would be impossible to short sale at 1.25MM even if they had a 100% LTV mortgage at 987k.
Unless they had an negative amortization option-ARM that was originated in 2006 this couldn’t go short sale with these figures. Which is possible they DO have that sort of loan and that their payment will recast soon. If thats the case this property has REO written all over it. Owners payment is gonna jump from 2-3k/month up to like 8k. Game over.
As demonstrated, “short sale” doesn’t mean much if the seller grossly overpaid.
Also, like Bob said, you would also have to be selling at a loss. In 2008 the listing was fraudulent, now it’s just meaningless.
From the prior thread on this prop:
“Steven Heitman on September 19th, 2008 at 7:13 am
Here comes the government… Look for fed funds rates to come down to 1% in the next couple of weeks. Mortgage rates will be back around 5% and off to the races we go. Looks like LP will escape with no down turn. Now who in the world predicted that?”
Sure looks like someone claimed LP was immune and boasted about it.
“Gourmet Kitchen”
LMAO! That kitchen looks like a rental!
“Overlooks wrightwood park and pool”
LOL!
And short sales are negotiated with banks. A negotiator says he has someone willing to buy the place right now for lets just say in this case $650k, you do a bunch of paperwork and finally the bank says, we’ll do 700k so you give the listing to some realtor and tell her to sell it for 900k and take the 200k difference and pocket it. Assuming it sells… HA!
They refi’d in December 06 (rec’d 1/07) with a $912k first and a $110k second. I don’t have much trouble believing that they weren’t making all the payments and the late fees and accrued interest, etc. pushed the total up by 15%. Lis Pendens don’t usually get filed unless the borrower isn’t making any effort.
Also, there is a recorded “agreement” b/t four (unrelated, based on names) guys and the (eastern-european named) owner recorded in November–probably that Lease.
If it’s renting for $5000 a month, in what universe is it worth close to a million dollars?
“If it’s renting for $5000 a month, in what universe is it worth close to a million dollars?”
Stevo’s world, of course:
12*(5000)-10,523/.055/.8 = $1,124,477
I know this isn’t going to make me very popular, but I think Steve has said that there will be people who lose money in LP, but that overall prices will be stable and the ‘hood will fair much better than more transitional areas. So far, I think he’s backed up on that by the recent sales numbers that show LP prices are still rising.
This is not a very attractive property or location. The single family market is Lincoln Park is doing just fine. This property is struggling for reasons other than a soft market. Any of you walked through it?
Danny – Thanks for the vote of confidence but I really don’t think prices are really rising right now. I think they are soft which means some will gain and some will lose if they are forced to sell in this market.
I have been right on with my pridiction that LP would hold up much better than other areas. It has and it will continue to be the most desirable neighborhood for many buyers.
“Steven Heitman on September 19th, 2008 at 7:13 am
Looks like LP will escape with no down turn. Now who in the world predicted that?”
Steve:
I’m not sure anyone would argue that popular neighborhoods will devalue at the same rate as other neighborhoods. OF COURSE LP/GC/Streeterville/LV will hold up better than, say, Logan Square in a RE downturn.
I think the difference in opinion comes in how much these popular neighborhoods do devalue in this downturn. You seem to think the neighborhoods will hang onto the values that have been established over the last 5 years or so. I (and others here) disagree.
Danny:
Those “rising numbers” for home values in LP are based on median sales prices. Do you have any idea how statistically unreliable those figures are? They do not factor in supply or demand. They do not factor in sales volume. If there were only a single sale in Logan Square in a given month, and that sale was for 1.5 million, the median sales price would be 1.5 million. And what exactly would that tell you?
“If there were only a single sale in Logan Square in a given month, and that sale was for 1.5 million, the median sales price would be 1.5 million. And what exactly would that tell you?”
That someone has a lot of faith in Logan Square?
It’s a pretty sad looking property. However, when this property and others like it sold in 2006 they were all included in the evidence that LP prices always go up. Now people will exclude any property that goes down in value and use the remaining properties as evidence that LP prices don’t go down as fast as other communities.
Previous sale was for $195k in 1993. So, when you follow Zekas’ maxim of ignoring what the seller paid, if it sells for close to asking, it’s up over 10%/year. Of course LP always goes up–there are just a bunch of maroons who occassionally overpay for property in the midst of the inexorable increases.
Hey, on another topic, did you see that Corus is going to try to bail itself out of its condo construction/conversion loans by making loans to individuals and keeping the loans on its books? Crazy stuff–but pretty much their only reasonable way out, I think (much like the REO lending I suggested earlier–except Corus isn’t going to sell teh loans to Fannie).
Holy hell those pictures are absolutely terrible for a “$1mil+” property.
why cant I comment anymore??????????
a: You keep using different names and the spam filter keeps picking it up. Please stick to one name and you won’t have that problem in the future. Thanks.
I’ve used “a” forever.
Well- it is still picking you up. Hopefully it has solved the problem now. E-mail me if you’re still having problems getting through.
Those pictures are terrible, is Vista Way some sort of lender appointed realtor? Surely nobody in their right mind would work with a company that produces that kind of marketing if they didnt have to? That kitchen is probably not too bad in real life but those pictures are a disaster. They didn’t even remove the full plastic trash bags to take the shot! Or the outside shot with some dude walking through the picture on the right side, the bathroom with the toilet bowl cleaner on the counter? It’s almost comical…
So what’s the consensus on the selling price for the house? No one has hazarded any guesses at all. While the marketing stinks and the exterior paint is kind of gross, there are 5 above-grade bedrooms, a nice kitchen, maybe not great bathrooms but 3 full and 2 half so plenty of them, corner lot so a lot more light than you’d get mid-block. Of course one street over from ashland, but a park in between. I mean, is the ask THAT far off? And I’m not the seller, realtor, live in the neighborhood or anyone else that might care. Just curious as to the thoughts of a selling price.
“corner lot so a lot more light than you’d get mid-block”
It’s an alley corner, so it’s a corner and mid-block. It can’t sell for anything close to the current ask with tenants in it–no one wants a $900k single-unit rental property, even if they could get financing. When the lease is up, in 9-10 months, I’d say it’s going to the lender.