2121 N. Western Ave., Waukegan

This 3 bedroom, one bath ranch has central air and 1.5 car garage. My client purchased it for $74,121. He plans to put about $5,000 into it and flip it. The property is in great shape and it is located in a very nice neighborhood.

We almost passed it one up because we thought other buyers would be going after it for full price or higher. It had been on the market for as high as $140,000, in the past.

This one, like many foreclosures, was a lesson in patience. It took nine weeks from the time the offer was submitted until I delivered the earnest money check. But if you are willing to wait for awhile and move quickly when the right time comes, you can reap the benefits of purchasing properties at 30%, 40% and even 50% off of their market value.

Foreclosures jump 57% as loans adjust - Tribune

April 16, 2008

From Tribune news services

U.S. foreclosure filings jumped 57 percent in March from a year earlier as adjustable-rate mortgages increased and more owners lost their homes to lenders.More than 234,000 properties were in some stage of foreclosure, or one in every 538 U.S. households, Irvine, Calif.-based RealtyTrac Inc., a seller of data on defaults, said Tuesday. Nevada, California and Florida had the highest foreclosure rates. Illinois ranked 12th, with 1 in every 603 households in some stage of foreclosure. And the worst isn't over: The wave of adjustable-rate loans resetting to higher rates will crest in May and June, experts said. And that's expected to push more homeowners into default and foreclosure in the third and fourth quarters of this year, according to RealtyTrac.

"Once we're through that batch of loans, the worst will have been worked through the system," said Rick Sharga, RealtyTrac's vice president of marketing.Auction notices rose 32 percent from a year ago, a sign that more defaulting homeowners are "simply walking away and deeding their properties back to the foreclosing lender" rather than letting the home be auctioned, RealtyTrac Chief Executive James Saccacio said.

Waukegan Six Unit - $295,000

Sale is subject to approval of second lienholder.

All units completely remodeled. All windows replaced. New ceramic tile floors in all kitchens, halls, and baths. New kitchen cabinets, sinks, countertops. New bathroom vanities, toilets, tubs have new coating. New interior and exterior doors and closers. New carpeting throughout. All new appliances. Furnace 2 years old. Laundry income. Tenants pay electric and cooking gas. Like buying a brand new building!

Please allow 24 hours to show. Listing agent must accompany.

Listed by Graff Realty, Inc. Call Neal Metts 847-219-2577.

Northern Waukegan

This listing caught my eye. Two bedroom, two bath, brick home with a one car garage in the northern part of Waukegan, listed for $88,450. There must be something wrong with it but for that price it's worth taking a look, isn't it?

1319 Westmoreland Avenue, Waukegan

This three bedroom, one bath ranch with two car garage was recently purchased by one of my clients for $60,000. The owner plans to rehab the property and flip it.

What if you had purchased this property? Put 10% down and put $5,000 to $10,000 in repairs and rehab into it. Let's assume your only debt is the $54,000 you had to finance. Your monthly payment at 6.5% interest (including about $3,200 property tax and $400 home insurance) would be about $650 per month.

$1,000 month rent is a conservative number for a three bedroom home. But you could be clearing $350 per month! Minus some expenses, of course.

Honestly, it is hard to find properties priced this low. It takes a lot of patience and good luck but it can be done.