Understanding Chicago real estate terminology made easy. Specialize in historic neighborhoods such as Englewood, Chatham, South Chicago, West Pullman and many more. Many of our properties are considered distressed, neglected, bank owned, or vacant. But what do these terms actually mean and why would we put our time and effort into older and outdated homes?
Chicago houses for sale come in a lot of different styles from the old to the new. Frankly, what we love about Chicago real estate is the historic value of our great city. There is something special about selling a bank owned Chicago bungalow for sale and watching a rehabber flipping houses for profit. Bring the old to life again is as much a part of our business and staying profitable.
But, to understand why you should buy bank owned Chicago houses for sale, distressed foreclosed buildings for sale and vacant properties for sale, you should probably understand the terminology.
Chicago real estate terminology
Here are the common terms you’ll hear bounced around when you are shopping for affordable homes in Chicago’s southside and westside neighborhoods.
Distressed:
Distressed homes for sale is a broad statement to define a property that falls into multiple categories. Though, when looking for distressed property there are commonalities which you can expect to find. A distressed property for sale likely needs some updating due to neglect often from a lack of money. Distressed homes may include abandoned and vacant houses, bank owned homes for sale, REO properties, short sales, and HUD homes.
Abandoned and vacant homes:
Many people think that abandoned and vacant homes are the same thing, and for your purpose as a house buyer they might be. From URB Chicago’s point of view we can classify them in two different ways. An abandoned home for sale is unoccupied because no one lives at the property and it has become neglected and likely the vegetation is overgrown. A foreclosed vacant property for sale, by definition, is an abandoned home which was abandoned due to foreclosure or the inability for the occupant to pay the property off or pay taxes on the property.
The end result is the same and you have a home with no occupants and falling into disrepair. Abandoned homes are a popular type of REO property to buy from URB Chicago because they are unoccupied making them easily accessible and move stuff in, plus they are very affordable.
Bank owned or foreclosed homes for sale
Of the three options on this list, bank owned, and foreclosed properties, are most popular because they can provide you an inexpensive way to buy a move-in ready home. Where a distressed or abandoned property might have a lot of rehab work to be completed, a bank owned house for sale in Chicago may be inexpensive simply because the previous owner couldn’t complete their mortgage.
Buying a foreclosed or bank owned house for sale in Chicago can be a great opportunity to find distressed and inexpensive single-family homes for sale, 2-flat, 3-flat and 4-flat properties for sale or more. But before buying a property in Chicago it is important to understand the terminology surrounding the homes for sale in Chicago and why these terms indicate cheap houses for sale and likely an affordable fixer upper homes for sale.