I receive at least 5 calls a month inquiring about foreclosures in the Chicago Real Estate Market. There are foreclosures in a number of buildings, however, contrary to public opinion… foreclosures may not be the quick and easy way to make money. They can be problematic.
For example, there are a number of foreclosures in 345 LaSalle Street, also know as the Sterling. A number of investors bought in the building with the idea that rental income would help cover their expenses/mortgage for a period of two years. The two years are up, the renter has moved out and they can”t cover their expenses. Because these investors initially bought these condos for little or nothing down, they are now letting the properties go into foreclosure.
With the large number of foreclosures in the building, the association for the building is not collecting their association dues, therefore, the financial strength of the association could possibly come into question. Given this scenario, purchasing a foreclosure may not be the quick and easy way to make money, it could be a route for financial problems.