Buying Chicago foreclosures is a popular strategy among savvy investors to help reduce their initial costs and increase profits. There are pros and cons of buying foreclosures compared with properties that are not foreclosed. Take a closer look at the most important factors on each side to confirm whether buying foreclosures in Chicago is right for you.
Pro: Discounted Price
The biggest benefit of buying a foreclosed property is the discount. This is true no matter what phase of the foreclosure process the property is in, although it can vary greatly.
The discounted initial price makes it easier to invest in a property and get started even with less capital. It also improves your potential return on investment.
If you get lucky, you can get the largest discount on a foreclosed property at auction. You can also get excellent discounts on pre-foreclosures and real estate-owned (REO) foreclosures. In any case, the discounts come from the fact that the owner wants to quickly sell the property.
Pro: Can Find Flexible Agreements
Depending on the stage of the foreclosure process the property is in, you may find a property that offers more flexible sales agreements. This is particularly common in pre-foreclosures, as the homeowner wants to avoid the hassle of a finalized foreclosure by selling their property.
Pro: Potential Financing Benefits
Although not always the case, a bank that is selling a foreclosed property may offer better financing. It would do so with the goal of selling the property more quickly, so it can start to regain some of its lost money. This could result in you having a lower mortgage payment, less interest, and even lower closing costs.
