Not long ago the road sides along Naperville and Plainfield IL streets were littered with ‘WE BUY HOMES’ bandit signs, but today the only investors still surviving in the current real estate market are purchasing homes at deep discounts through short sales based on their current market values. (not on what the homeowner owes), and then holding them as rental property until the market improves.
This has opened up the market to a whole new set of buyers who were previously shut out of the market due to the real estate feeding frenzy that ended a little over a year ago by these investors.
Three simple reasons that investors have stopped buying up all of the good real estate opportunities in Naperville and Plainfield IL are:
- Funding for these types of loans have dried up with the demise of the sub-prime lending industry.
- There is too much competition in the inventory of homes to successfully sell the investment property quickly to avoid holding costs.
- They can no longer bank on the anticipated future appreciation on their investment for equity.
While the inventory of Plainfield and Naperville IL homes being sold for less than what is owed is driving the price of homes that are available for sale, many buyers who have been lucky enough to sell their home, or 1st time home-buyers that don’t have a home to sell, are cashing in on the opportunity to purchase pre-foreclosure and foreclosed Plainfield and Naperville IL homes.
In the past, bank owned or foreclosed homes were traditionally abandoned and trashed on the interior, but today the face of foreclosure has changed. Your neighbors, family, and friends are among those who have either lost or are about to lose their home, and that is not the case. These homeowners are simply walking away. Homes in Plainfield were among one of the hardest hit communities in Will County to be affected by foreclosure, but the amazing thing is… even after everything that has happened in real estate over the last 3 years, Plainfield IL home prices are still 2% above their 2005 values on average.
Because the volume of foreclosed Plainfield and Naperville IL homes are on the rise, buyers now have a better opportunity to negotiate directly with the bank on their purchase. There are several reasons that negotiating with the bank in the purchases of Plainfield or Naperville IL homes will end in the buyers favor in most cases:
- The bank is not emotionally attached to the property.
- Their price is based on statistical data including recent home sales and appraisal.
- Many of these loans are federally insured by the US government, (FHA loans) for 82% of the loan to value ratio, meaning they can be sold for a bank net of 82% of their value.
- Banks understand the value in liquidating a non-performing asset for their investors.
- Because Illinois is a judicial state, the foreclosure process is 4-10 months long on average. The bank is often eager to settle for less before the date of the auction to avoid additional court costs and property management fees. Also, the home is less likely to be vandalized by the homeowners if they have not actually lost their home at the auction.
1st time home buyers, and buyers that don’t have a home to sell, have a unique opportunity for buying a Plainfield or Naperville home that is in good condition and under market value. The hesitation for buyers in this market comes from analysts that say the worst isn’t over yet. The best way to safeguard your investment is to buy a home under market value through a short sale, preforeclosure or as an REO, right from the bank.
I predict the Plainfield and Naperville real estate market will begin to improve after this November’s presidential election. The current price of gas and the worry of inflation have many potential home-buyers climbing back over the fence. Consumer confidence will begin to improve when some of the uncertainty of our governmental and economic conditions have been put to rest.
I have 4 years of experience in dealing with short sales, bank owned properties and pre-foreclosures. I have successfully negotiated short sales for homeowners in foreclosure, and I have been performing Broker Price Opinions for lenders on property in default for the last 12 months.
I know how to evaluate the value of Plainfield and Naperville IL homes because I live and work in the community. I can help you find the best home at the best price. The best part is it’s not just what I’m good at… it’s what I love to do!
If you are a buyer looking to purchase or invest in a Plainfield or Naperville IL home, I can help you find the best value for your money, and put you in a positiion of equity to protect your purchase from further market depreciation.
If you are a homeowner facing foreclosure in either Plainfield or Naperville IL, I can attempt to negotiate a short sale with your lender to avoid a foreclosure. Due to the high amount of inquiries I receive about short sales, I limit the number of homeowners in foreclosure that I can successfully assist at one time.
Call me at 630-673-6233 to get started right away. I look forward to talking to you.
Join the Discussion… Leave a Comment!
Julie Ferenzi | Realtor®
Plainfield ILReal Estate
630-673-6233
Foreclosure and Short Sale Information foreclosures naperville il homes naperville IL homes for sale News & Information plainfield IL homes Plainfield IL homes for sale plainfield rentals short sale Tips for Buyers
Many Plainfield IL homeowners are facing the possibility of foreclosure. The thought of losing the roof over your head is a scary concept, especially if you are worried about the well being of your family and their future.
The assumption is that because the foreclosures have brought down the value of the homes in the neighborhood, that the taxes would automatically decrease, but that simply isn’t true. While the foreclosures in your neighborhood may have caused the residential equalized assessed valuation to decline, the remaining Plainfield homeowners are left to bear the brunt of these abandoned and bank owned homes.
The Kensington Club subdivision is located off of 127th St. just west of Rt. 59. The subdivision does have a $670 per year association fee that is paid annually that covers the neighborhood amenities such as the clubhouse, pool, and ponds.
