Want Space? Large Bank Owned Garden Unit Awaits at 4335 N. Mozart
This 3-bedroom garden unit at 4335 N. Mozart in Irving Park has loads of space.
It is also bank-owned.
It has parking, central air, washer/dryer in the unit and low assessments.
Is this a “deal” at this price?
Matt Garrison at Coldwell Banker has the listing. See more pictures here.
Unit #1: 3 bedrooms, 2 baths, 1875 square feet
- I’m not sure this is the correct original sales price- but it looks like it sold for $242,000 in August 2005
- Bank owned
- Currently listed at $199,900
- Assessments of $125 a month
- Taxes of $5208
- Central Air
- Washer/Dryer in the unit
- Parking
A garden apartment this close to the river…No thanks.
I think its a deal at this price. Yeah its a garden apartment and below grade and comes with the risk of flooding, although probably not from the river as its a half mile away. But if you weigh the probability of that happening against the discounted price it screams deal to me.
“Taxes of $5208”
That can’t be right for the condo and seems too low to be the old taxes for the whole building. What’s up with that?
Funny. Someone during the craze spent a quarter of a million on a glorified basement.
100k!
anyone watching the long bond action today? riveting stuff I tell you.
Never ever buy garden units. Horrible places.
I know that we all complain and break-bad on every property here…
… but this is a rather large 3/2 for under $200K.
And yes, this is not in LV or LP but its not in the ghetto either. This is just down the street for Horner Park and numerous other parks. I remember seeing this building (only from the outside) when I was looking at a unit down the block. The block is quite nice and quiet. Not really walking to much, except the park.
Get yourself a good alarm-breakins are my biggest concern with gardens/first flrs, and flood/sewer back-up insurance and you’ll be fine.
This is a deal, not for everyone, but for those you are OK with the neighborhood and the lower level.
Sartre.. even uglier is the dollar going down as the 10yr soars. I once read that shouldn’t happen. 🙂
“anyone watching the long bond action today? riveting stuff I tell you.”
Thank goodness i bought TBT at 43… its up to almost 60 today! wowzers… riveting indeed 🙂
how is Shill and his “contract” stats… want to guess what percent makes it to closing now?
What are rents in this area and do you think there would be a supply of renters looking for a place here
“anyone watching the long bond action today? riveting stuff I tell you.”
Yes. This is actually a bit scary. We are now past the point where Team Obama and/or the Fed can intervene. If the Fed were to announce another Treasury purchase plan today, Treasuries would sell off even more due to inflation fears. Get ready for 13% mortgages.
Can anyone speak from personal experience of living in a chicago garden apartment? It seems like they command a pretty steep price drop – up to $100k difference for otherwise comparable G vs. 1st floor units.
I heard from a friend this weekend that she was not able to buy flood insurance for hers in Roscoe Village – no one will provide it.
“We are now past the point where Team Obama and/or the Fed can intervene. If the Fed were to announce another Treasury purchase plan today, Treasuries would sell off even more due to inflation fears. Get ready for 13% mortgages.”
Team Obama ™. Remember all superheros or groups of superheros created by Marvel, DC Comics or the Mainstream Media/Ted Turner are trademarked.
Hrm I wonder what impact 13% mortgages will have on real estate valuations?
Also Tom while this property isn’t as walkable as LP/LV and a few other hoods you can walk to infinitely more things than the suburbs. A couple restaurants, a couple bars. Try trying that in Schaumburg–just better hope you have comfy sneakers and a few hours to kill.
“Hrm I wonder what impact 13% mortgages will have on real estate valuations?”
Nothing Bob. Real estate only goes up.
Oh some more incentives from DC, looks like the tax credit for first time homebuyers might be increased to 15k:
http://www.bloomberg.com/apps/news?pid=20601087&sid=alfbV3LXPE_E
The government is becoming increasingly desperate to try to lure people into the ponzi economics of RE ownership. This time income restrictions are removed from the credit and it would apply to multi-family properties as well.
Why is the government so eager to put me in a home? Oh wait is it to buy a bubble inflated property on the way down to add liquidity to the market?
“Oh some more incentives from DC, looks like the tax credit for first time homebuyers might be increased to 15k:”
At least they figured out the income restrictions were absolutely ridiculous as many people who are in a position to buy a house make more than the current limits.
“not able to buy flood insurance”
The availability of flood insurance (genuine flood insurance) is determined by your flood zone location. It’s all underwritten by the federal government. If you aren’t in whatever flood zone qualifies, it ain’t available to you.
She can get sewer backup coverage, which should be sufficient coverage in RV. If there is a ground covering flood in RV, which flows into her unit, there are going to be bigger issues to deal with than uninsured personal property damage.
“Why is the government so eager to put me in a home? Oh wait is it to buy a bubble inflated property on the way down to add liquidity to the market?”
Because they are attempting to temporarily stabilize housing prices until the unemployment rate goes down a bit.
I wonder if I qualify for another 7k??? Since I already cashed in my 8k early… lol that would be nice.. I’d go take a nice european vacation or something! hah!
does this place make sense as a rental? seems like that might be a bigger market than garden apt owner occupants.
“Because they are attempting to temporarily stabilize housing prices until the unemployment rate goes down a bit.”
Their efforts might only have much of an effect at the entry level, as most trading up need to sell their place first. Additionally the subsidy only occurs over the first 150k, making it the largest % of the purchase price up to 150k and declining beyond that.
However this is probably the segment _least_ in need of stabilization. With the FHA theres still the backdoor of home ownership with 3.5% down for properties up to 230k and entry level buyers aren’t reliant on selling their old place first before buying a new one.
I’m in, assuming this revised credit is approved. I could buy a place up to 428K with absolutely no skin in the game. Where else can you make a 428K bet without deploying any of your own capital? Well, maybe you have to tie up 15K for a few months…but you get it back.
I think this make sense as a rental, especially if someone purchases as (intended) owner occupied.
Buy at $165K – new stimulous credit: $150K mortgage @6.00%= $900/month + $125 HOA/month+ $400 tax/month (assuming homeowner deduction) =$1425/month
A nice, new(ish), large unit could fetch that easily.
Please dont reply that you can do owner occupied financing if you are renting out the unit. Of course you’re not suppossed to, and of course it occurs all the time. Most mortgages stipulate that you ‘intend’ to occupy the property as a primary residence for at least 12 months. Intents change.
“$400 tax/month (assuming homeowner deduction) ”
Or, contest the taxes and get them reduced to ~$175/month. This place is way out of whack on the taxes.
“I’m in, assuming this revised credit is approved. I could buy a place up to 428K with absolutely no skin in the game.”
For single residences incorrect. The only avenue to zero down, 100% LTV loans these days is the VA Program. The FHA loans are limited at 230k I believe and for that you’d need 3.5% down.
Anything else and you’ll need a 10% or 20% downpayment, depending on your credit score and whether its a condo or SFH. This can’t technically be used for downpayment assistance either, although you could argue semantics.
Looks like for a 428k loan you’re going to have to have 28k skin in the game at a minimum (42.8k – 15k).
FYI the third floor is worse for break-ins that gardens according the detective who investigated a friends burglary on the third floor about ten years ago – less chance of being seen from street, etc.
FHA loans go to $410k in Cook County. They used to be around $230k or so until they changed how the max loan amount was calculated a couple of years ago. It was reduced to $365k earlier this year and then when all hell broke loose with the market, they raised it again to $410k.
You can still buy with 5% down without going FHA/VA. It just gets tricky with condos because most of the MI companies are reluctant to provide mortgage insurance on condos with less than 10% down. Basically, the MI companies are overriding the bank and fannie/freddie underwriting guidelines. Banks would still do 97%/100% financing right now if you could get mortgage insurance. If it is a single family home, 5% down is no problem with conventional financing.
“The FHA loans are limited at 230k I believe and for that you’d need 3.5% down.”
410k according to this website for single families.
https://entp.hud.gov/idapp/html/hicost1.cfm
So you could buy up to $428k (15k downpayment (taxpayers yea! @ 3.5%) and only have 3k in the game, not including closing costs of course.
Or 425k with zero skin in the game, and actually some money leftover in your pocket if they sellers want to pay your closing costs lol.
Thanks for the clarification Russ. I guess the floodgates are still open to real estate speculation in a lot more areas than I previously thought.
The credit CANNOT be used as a down payment. FHA still requires that you have the 3.5% down from your own funds (or gift from qualified sources).
However, there is the potential to use the credit to offset mortgage insurance and other closing costs. Banks and Govie still tryin to figure out how it is going to work.
“Or 425k with zero skin in the game, and actually some money leftover in your pocket if they sellers want to pay your closing costs lol.”
I am smelling some potential arbitrage by trashing my FICO…I’m gonna have to give this some consideration.
The 15k you get is cold hard cash… you could borrow the money from parents/friends whoever and pay it back when you get your next tax return, or file an amended one this year and get it in a matter of weeks.
“Because they are attempting to temporarily stabilize housing prices until the unemployment rate goes down a bit.”
What happens to the market in one year when this incentive expires?
Also how can we be sure this will be the best incentive they offer, given its already the third one, each with increasingly better terms, offered in a year?
Well you can always wait for a better deal, but sometimes you have to make a move or risk if you want to take advantage of an opportunity.
“The credit CANNOT be used as a down payment. FHA still requires that you have the 3.5% down from your own funds (or gift from qualified sources).”
God help us if people don’t have enough cash for a 3.5% down payment (which they will get refunded in less than a year). If they don’t, they have no business owning a house/condo. How are they going to maintain the place? Oh I know, they won’t maintain it and the bank will eventually end up taking back a property in complete disrepair. And then you, I, and all the other generous taxpayers get the shaft as the loan was insured by the FHA.
Actually the loans are insured by mortgage insurance companies, and they front the bill. Also you pay a large 1.5% up front mortgage insurance premium when you close so its not like taxpayers are subsidizing mortgage insurers. They know the risk!
Sonies – This is a question, not a dispute to your claim.
Isn’t the FHA an extension of the federal government and doesn’t the FHA insure banks from the loss of principal? If so, wouldn’t the govt eat the loss under a foreclosure/short sale scenario? The bank doesn’t care what they “lose” because they will ultimately be reimbursed by the FHA.
“FYI the third floor is worse for break-ins that gardens according the detective who investigated a friends burglary on the third floor about ten years ago – less chance of being seen from street, etc.”
I have been hearing this from agents as well. Seems hard for me to believe personally. I would love to see actual chicago break-in stats by floor.
The upfront mortgage insurance you pay at closing (the 1.5% if only putting 3.5% down) is in fact FHA insurance, the rest of the PMI you pay every month escrowed with your taxes along with your mortgage payment (until 20% LTV) is through private mortgage insurers like MBIA or whoever. I’m pretty sure about this, not 100% though. Ask a mortgage person, which I am not 8)
FHA is just mortgage insurance. It is basically government backed mortgage insurance. An FHA loan is just a mortgage insurance policy that provides coverage of mortgage loans underwritten by banks to FHA guidelines. It cost 1.75% of the loan which is financed into the mortgage and then the monthly cost is .55% (loan amount x .0055/12).
Regular mortgage insurance on conventional mortgage is provided by private entities such as MGIC, Radian, and a few other companies. Actually, one of the MI providers is United Guaranty which is a unit of…. drumroll… AIG! So yes, we also own the MI companies as tax payers too.
Yes, I am a mortgage person…
Maybe it is just the photos, but this seems to be more of a basement level than a garden unit.
I lived in a “garden” unit for a year. It was a loft-style place… timber ceilings that were 11 feet high, and the windows were pretty good size, I was about 6 steps below grade. Never once had a water problem, even during those horrible storms we had last summer. The key with a garden unit is to make sure there’s an adequate flood control system, which my place had. Most newer construction will have pretty good flood control.
My only complaint about living there was that I couldn’t keep my blinds adn windows open all that often since I felt like people walking by were always looking into my place. Could get depressing at times.
I also have lived in a garden unit… and would never, ever do it again! So depressing in the summer, and its just horrid in the winter! Plus your gas bills are pretty rediculous in the wintertime as well.
Have you ever seen ‘A river runs through it”? I bet that describes this gloomy depressing dungeon of an apartment.
No matter how nice you dress up a garden unit, it will always still feel like you are in a basement. Might be ok for some people, but it is a huge flaw kind of like no parking that a large number of buyers will not tolerate.
Top floor was the most recent sale at around $380K. A 50% discount going from the top floor seems more than fair.
It obviously not for everyone, but for those that don’t mind much it is a great opertunity.
This is no garden, it’s a cellar! A basement by definition is (I have to confirm per code) more than 50% below grade, which this looks to be from the patio, um, bunker.
“I lived in a “garden” unit for a year. It was a loft-style place…”
loft
Pronunciation: \?lo?ft\
1: an upper room or floor : attic
Garden-unit loft…now that’s an oxymoron!