There never been better time to invest!

There were more then 10,000 homes in Chicago that were under foreclosure in 2010 and is predicted to rise over 35,000 more in 2011.What we need to know about foreclosure buying as investors is that foreclosure auctions sell properties dirt cheap. Hovewer, those properties mostly in very bad shape, because owners already exhaust all the options to refinance, sale, short sale and dozens of other options and the owners  just do not care anymore.       Be ready that no disclosures will be provided by lender for those types of properties so you are taking a risk.  Another issue is financing; what lender will preapprove you as a auction winner?  Big question. At regular sales, lenders follow certain steps to make sure that they are not lending money for destroyed properties.

So, unless you have crystal credit history or you are cash buyer, you'd better look for alternatives like short sales or regular market. But again, there is a big advantage of buying foreclosed properties - they are cheap!

Another big issue could be previous home occupants. If they are not ready and willing to move out - they still there. Foreclosure usualy results in eviction.So you may be dealing with unhappy occupants that will not leave, until the authorities force them.

Here are a couple articles from National Association of Realtors®