Pre-Foreclosure Price for a Junior 1-Bedroom in Uptown: 4250 N. Marine Drive
This junior 1-bedroom in the Imperial Towers at 4250 N. Marine Drive in Uptown has been on the market since June 2009.
The Imperial Towers complex was built in 1963 and has 860 units.
The property has recently become a “pre-foreclosure” listing, with the bank willing to take $109,000.
The unit does not have central air, a washer/dryer in the unit nor deeded parking. Rental parking is available in the building.
But the listing says it does have new windows.
What is the market for the junior 1-bedroom on the north side?
Darya Lisserman at @Properties has the listing. See more pictures here.
Unit #614: 1 bedroom, 1 bath, 525 square feet
- Sold in January 1994 for $24,500
- Sold in May 2000 for $74,000
- Sold in July 2003 for $97,000
- Sold in September 2006 for $118,500
- Originally listed in June 2009 for $125,000
- Reduced several times
- Lis pendens foreclosure filed in January 2010
- Currently listed as a “pre-foreclosure” for $109,000
- Assessments of $270 a month (includes cable)
- Taxes of $1488
- No central air
- No in-unit washer/dryer
- Rental parking for $190 a month
“What is the market for the junior 1-bedroom on the north side?”
I dunno, but in Philadelphia, it’s worth fifty bucks.
Are we doing a tour of Uptown?
I think this is worth about $60,000-65,000 at this point, depending on the possibility for special assessments.
lol assessments
1994 price looks about right..
‘lol assessments’
really??, I know that is a small unit but there are several items that warent the HOA fees. Heat and a doorman are costly. So are an elevator, pool, doorman. Those 3 also have huge operating, maintainance, replacement, and insurance costs.
If you don’t want to pay for those ammenities then this type of building is not for you. But this building includes it so its only relavent to a buyer who would want those things, which of course limits the pool of potential buyers
Yeah I’m the last person you’ll ever see being a high assessments apologist, but those seem pretty reasonable.
The price, however, is not.
Assessments more than reasonable. Helps that the assessments are spread across so many units.
As a point of reference, this looks very very similar to the 1 bedroom layouts for 211 east ohio in streeterville which does have parking (non assigned)
I think 1 bedrooms @ 211 east ohio go for low 200’s. And although a large building with 400ish units, the assessments are in the mid 400’s.
—
so same basic unit and different location…so is the premium for being in Streeter is 100k
Seriously, this unit was financed at 100%. No down payment. I don’t know the seller even bothers to short sale. Just walk away brother, walk away.
No rush for them to walk away, HD. Just stop paying and save the money for future digs until foreclosed upon. That walk away will feel better with the jingle of cash in pocket.
No rush for them to walk away, HD. Just stop paying and save the money for future digs until foreclosed upon. That walk away will sound better with the jingle of cash in pocket.
Sorry, thought I caught the edit in time.
211 E ohio, which was featured on cc before, has an indoor pool (I would never ever want an outdoor pool in Chicago) – and I believe somewhat less outdated kitchens.
I don’t mean it to be an exact to the detail comparison.
211 E Ohio has a smaller number of total units.
It has parking.
It has pretty darn nice workout facilities.
The indoor pool I think is smaller compared to this property.
The upgraded kitchens vary by unit, but yes…this property’s kitchen is at the lower end of a 211 kitchen. Say a 10k kitchen upgrade diff.
Sort of unrelated,
This Pooling and Service Agreement from 2005 rolls across my desk. I did some research. In 2006 DBRS projected a default ratio of about 6%. It was rated AAA.
However, DBRS failed to recognize that this 2005-X pooling agreemetn loaned money to a bunch of deadbeat losers.
In July of 2009 the Trust was downgraded and discontinued with a default rate of over 22% which in my opinion is still too low. I also got a mortgage with the pooling agreement. This borrower had a credit score of 615 and they thought it was a good idea to lend him $200,000, adjustable rate, no income verification, no tax escrow and a pre-payment penalty. What a joke, AAA. This is toxic waste.
“No rush for them to walk away, HD. Just stop paying and save the money for future digs until foreclosed upon. That walk away will feel better with the jingle of cash in pocket.”
Until the bank goes after you for deficency judgment.
“This borrower had a credit score of 615 and they thought it was a good idea to lend him $200,000, adjustable rate, no income verification, no tax escrow and a pre-payment penalty.”
What is wrong with these people (all parties involved)
“What is wrong with these people (all parties involved)”
Everybody was acting rational but the investors buying the securities. In this instance the securities could not be offloaded onto the Fed but in most cases even the private investors were made whole courtesy of US taxpayers.
The unwritten rule in cook county is that the banks won’t collect on deficiency judgments from first mortgages. It’ll appear on your credit report and they’ll 1099 you for it (but no tax penalty – thanks W!) but they wont’ collect it. FOr all practical purposes we’re the same as CA where the first mortgage is non-recourse. I means it’s not written into the language of the mortgage but there is the written law and then there is what happens in real life.
The bank may or may not sue you in municipal (or law) for the second mortgage. I’ve only seen Citi and HSBC do that on occasion. You can settle a small debt like that out with a large tax refund.
“Until the bank goes after you for deficency judgment.”
“FOr all practical purposes we’re the same as CA where the first mortgage is non-recourse.”
Do they sue on refi’d firsts? B/c Cali only is non-recourse as to PM firsts; refis are recourse.
In IL banks will sue for refi’d firsts and there will be a deficiency judgment,however, the bank will not make attempts to collect on it. It’s like you owe the money but you don’t have to pay it because they aren’t trying to actively collect it. THat’ been the unwritten rule for as long as I can remember.
“Do they sue on refi’d firsts? B/c Cali only is non-recourse as to PM firsts; refis are recourse.”
What is a “junior” one bedroom anyway?
“What is a “junior” one bedroom anyway?”
See that black bit in the lower left of the “bedroom” pic? That’s the TV.
to be a jr one bedroom means a couple of things.
say a studio is 550-600, then a jr. one bedroom is just a bit bigger.
or if you have multiple bedroom sizes. again I knew 211 east ohio. they had 700 and 800 sq. ft 1 bedrooms. so the 700 sq. ft 1 bedroom would be the jr one.
“to be a jr one bedroom means a couple of things.”
sorry I mean to say…
“to me”
Evidently in this case it means a studio with a sliding divider.
Not a horrible deal if you put 20% down. Payments after assessments and taxes would be just slightly more than the current market for a 1-BR. For now at least…
It’s not a screaming buy, though.
Not a horrible deal if you put 20% down. Payments after assessments and taxes would be just slightly more than the current RENTAL market for a 1-BR. For now at least…
It’s not a screaming buy, though.
“Evidently in this case it means a studio with a sliding divider.”
lol. I thought that these type of units were referred to as “convertible” studios, but I guess jr. one br helps justify the price?!
I used to live in a studio that was about the same sq. ft. as this one. We’re talking: BR–barely big enough for a bed; LR/DR with room for a sofa, couple chairs and a small dining table. tiny kitchen, small bath, mini entryway & a couple small closets.
“Not a horrible deal if you put 20% down.”
It actually is a horrible deal vs. renting as you’re signing up for a potentially unlimited contingent liability (ie assessments).
I lived in one of these at park place for about 1k a month over 5 years ago, mine had nicer new finishes but my god they are tiny spaces and park place is a much better location than this.
Rental rate is probably $650-700 a month now a days so cut the price in half for “cash flow positive”
Most people who are being foreclosed on their primary residence own nothing of value and have a ton of debt. So a deficiency judgment is pointless, like squeezing the proverbial blood from a stone (or turnip, whatever).
Homedelete, correct me if I’m wrong, but wouldn’t a bankruptcy filing put a quick end to a deficiency judgment, while doing about the same damage to a credit rating as a foreclosure by itself?
Good price, probably can knock the bank back a bit. Assessments are reasonable, ime, esp for amenities. The potential for special assessments are apart of every condo association. Location is terrific – right by lake and express bus lines, if the city keeps the Xs running…
I lived in one of these at park place for about 1k a month over 5 years ago, mine had nicer new finishes but my god they are tiny spaces and park place is a much better location than this.
Rental rate is probably $650-700 a month now a days so cut the price in half for “cash flow positive”
You can barely rent a crappy low ceiling (if your over 6ft tall forget about it) Garden Apt that leaks when it rains in the NW side for $650 per month. I think upgraded you could pull in $900 per month on that unit. The location is right on the lake and you have the pool and exercise facility. Im guessing there is laundry in the building. Still no way will you postive cash flow that unit after taxes and assessments unless you put 50% down.
“. . . I think upgraded you could pull in $900 per month on that unit. Still no way will you postive cash flow that unit after taxes and assessments unless you put 50% down.”
I’m confused by your math: If it’s worth $900 per month, that would leave you a little over $500/month (after tax & assessments–assuming those don’t increase) to cover mortgage. If you put down 20% and paid the asking price, you’d have an 88,000 mortgage. At 5%, the interest only would equal $400 per month; p+i around $475. Or are you factoring in other costs? This seems like closer to break even than most of the things I’ve seen. Still–the downside risk of the building has to be considered.
I’m confused by your math: If it’s worth $900 per month, that would leave you a little over $500/month (after tax & assessments–assuming those don’t increase) to cover mortgage. If you put down 20% and paid the asking price, you’d have an 88,000 mortgage. At 5%, the interest only would equal $400 per month; p+i around $475. Or are you factoring in other costs? This seems like closer to break even than most of the things I’ve seen. Still–the downside risk of the building has to be considered.
I think your right. I’ll be honest I was just sipping coffee typing away and didn’t do any number crunching. I still think your first year would be your break even year. Then it will start to lose money. Taxes will go up and Assessments will go up.
I don’t think its a bad deal as far as investment property goes. I think it could rent easily. IMO I’ve been in that building, its not bad.
Rental Comps
Status Unit Rent #0fRooms Bedrooms
RNTD 930 900 3 1
RNTD 2212 900 3 1
RNTD 1903 895 2 0
ACTV 605 875 2 0
RNTD 1904 874 2 0
RNTD 2925 825 2 0
ACTV 423 780 2 0
ACTV 725 750 3 0
RNTD 725 750 3 0
RNTD 514 750 2 0
RNTD 325 750 2 0
bldg has to offer: pool,sundeck,party rm 2nd fl;exercise rm,grocery store, cleaners,management office,mail rm,coin laundry,doorman,gar below level, storage, bike room, on site management
Assessments only: $270
Assessments Incl: Heat, Water, Common Insurance, Doorman, TV/Cable, Clubhouse, Exterior Maintenance, Lawn Care, Scavenger, Snow Removal, Pool/Sundeck
No special assessment
BANK WANTS $109,000 FOR THIS UNIT
There is an open house today between 11-3pm
FYI: I’ve decreased the price on this one to $106,000..