Short Sale Puts on the Squeeze in The Metro: 1200 W. Monroe
The Metro, the nine story building at 1200 W. Monroe in the West Loop, was built in 2003 and is one of the more popular buildings in the area. Four units have already sold in 2008 with prices ranging from $265,000 to $420,000.
There are currently eleven units on the market.
One two bedroom unit is in short sale and is scheduled for a foreclosure auction. One other two bedroom says “motivated seller” in the listing.
The short sale unit, Unit #613, does not have any pictures.
Unit #613: 2 bedrooms, 2 baths, 1275 square feet
- Sold in November 2003 for $280,000
- Currently listed as “offer subject to bank approval” at $310,000– includes the parking
- Foreclosure auction scheduled this week for $382,261
- Assessments of $348 a month
- American Invsco Realty has the listing
This other seller is simply just “motivated”.
Unit #411: 2 bedrooms, 2 baths
- Sold in September 2003 for $301,500
- Currently listed for $324,900 plus $25k for parking
- Assessments of $350 a month
- Windows in both bedrooms
- @Properties has the listing
Nice looking unit! I like it
This unit looks a lot like one of the condo buildings on 500 block of McClurg in streeterville. I guess theres no plaigirizing rules in architecture 😀
I love the mosaic tile work in the lobby and elevators of the building! Did the ’03 price include parking?
The building was advertised as having Parisian touches (after the Paris Metro.)
It’s a popular building.
I’m not sure if the 2003 price included the parking (but am assuming that it did.)
Why is the auction price $70,000 higher than the current asking price of $310k? Also, why does the price of $310,000 require bank approval if it is below the $280,000 purchase price?
The answer to question two might be that they had the home reappraised and took out the equity through a home equity line.
I meant to say above the $280,000 purchase price in 2003.
The auction price is the outstanding mortgage, including late fees, attorneys fees and costs and interest. The asking price is $310k – that’s why it’s a short sale.
His story is a cautionary tale for those who used their home as an ATM:
Purchased in 9/03 (the deed was recorded in 11/03) for $280k
Mortgage of $238k in 9/03
Refi for $263k in 4/04
Refi for $295k in 9/04
Refi for $353k in 11/06
Lis Penden filed 9/07
Which means he stopped paying his mortgage 3 to 4 months before the filing of the Lis Pendens – May or June of 07. That’s six months before defaulting – not even long enough for the rate to adjust.
“John on May 29th, 2008 at 8:17 am
Why is the auction price $70,000 higher than the current asking price of $310k? Also, why does the price of $310,000 require bank approval if it is below the $280,000 purchase price?
The answer to question two might be that they had the home reappraised and took out the equity through a home equity line.”
The bank has a judgment credit of $382k. If no one bids higher than $382k at the auction, then the gets the property for $382k, the amount of its judgment. And then it will sit for 6 months before giving it to an REO broker who will try and selling it for $380k while incrementially lowering the price every month or two.
Why is his story a cautionary tale? He took out more than 70k (after recovering his down payment), has been living rent free for more than a year. Thanks to our congress he doesn’t have to pay taxes on the forgiven debt. And now he can go around claiming how he is such a victim and deserves a bail out.
No kidding, sartre. It is also possible that he didn’t have good credit at the time of purchase since lenders were not concerned about such trivial matters. It could actually be that he walks with his $70K and same bad credit he went in with. Definitely a win-win in that situation.
I just saw unit 411… seemed like a nice little place. One of the main problems was that the deck looked out over the ugly top of a 2-story building. Does the price on 411 seem reasonable for 2bd/2ba w/ parking in the West Loop?
Most cash outs are limited to 80% value of the home and tighter lending restrictions even back in 2004,and most lenders would not let you cash out if you were late on your mortgage in 12 months previous to a refinance.
I would think this borrower had good credit through these transactions in order to do the refinance.
Also, each time they refinanced the property they got a new and higher appraisal.
Now that was a sign of the times.
TomB, would it change your opinion about the borrower’s credit if you knew that Argent Mortgage handled the purchase and refi loans and that it was Deutsche Bank that filed the lis pendens?
simply put yes,enough said