Evanston IL Real Estate

There are three different types of foreclosure sales :

Pre-foreclosure sales: These are homeowners who have been delinquent on their mortgage and the bank has given notice that they intend to foreclose on the property. Such notice is called a “lis pendens”. “Lis pendens” notices are listed in public record and can be researched by anyone looking to buy Foreclosure properties. Buying pre-foreclosure properties requires you to have direct contact with the owner. This can be either a good thing or bad thing depending on who you are as a person. Remember, you are dealing with someone who is under duress. YOU MUST ASK YOURSELF ARE YOU THE TYPE OF PERSON WHO FINDS IT EASY TO TAKE ADVANTAGE OF SOMEONE UNDER THESE CIRCUMSTANCES.

Foreclosure Auctions: These auctions are very competitive and not for Novices who want to buy foreclosures. Many of the participants at foreclosure auctions are experienced full time investors or lenders who have an interest in the property. It is very hard to compete with these individuals.

Bank Owned Sales: These properties have been foreclosed by the bank. Remember the bank is in business to lend money not to own real estate. Bank REO departments track property that the bank has an interest in and can be a good source for foreclosed property or soon to be foreclosed property. Often banks will provide new financing on bank owned property.

In Evanston , Realty Trac lists 191 properties in the Pre-foreclosure stage, 41 properties up for Auction and another 41 Bank Owned.

Ask the expert allows me to answer some of your questions:

1. Are Home Improvements Tax Deductable? The answer to this question is yes and no. You are allowed to deduct the cost of any repair or improvement you made to your home from the date of ownership but are not entitled to that tax deduction until you sell your home.  I would advise you to keep receipts and a seperate file for any work done on your home because you can deduct it all when you decide to sell.

2. What are Condo Assessments and Common Areas of a Condo Building? Condo assessments are monthly fees associated with the maintenance and management of a condo buildings. Some condo’s are self managed and some hire property management firms to manage the building.

The common areas typically include building lobbies, hallways, garages, storage rooms, roofs, landscapping, and any other area that has public access.

3. What is appreciation?  Appreciation is the increase in value of a property over time due to inflation, supply and demand, capital improvements and other factors. Appreciation is one of the major reasons why home ownership is considered one of the best investments for individuals.

The major difference between a Condo and a Cooperative (Coop) is in the type of ownership. With a condo the owner actually owns real estate and gets title to this unit usually in a fee simple title. With this ownership comes and undivided interest in the unit and the common areas of the building.

In a Coop you do not own real estate rather your ownership is a percentage in a not-for-profit corporation. As a shareholder you get to lease space in the building. The corporation owns the common area space.

Because condos are owned individually and as such each condo unit has its own seperate real estate tax bill.

With coops there is one real estate tax bill which the corporation pays and passes along the cost to the shareholders. Real Estate taxes tend to be lower in coops because sales are not recorded.

Both condos and coops have monthly assessments to cover common area costs. Usually coops have a higher monthly assessment because real estate taxes for the corporation are collected monthly from shareholders. Other expense items such as utilities (heat, water, electric) are also included.

Financing is available for both condos and coops. The association of a coop may require a bigger downpayment from a shareholder.

If you would like to receive more  information about condos or coops please feel free to contact me personally at www.jacklewitz.com.