South Burbs - Church Groups Buying Homes (Chicago: real estate, foreclosure)

[vester72]

I live in the south suburbs and have seen quite a few instances where "church groups" (not sure what that is exactly) are going into pricey subdivisions and buying homes.

I have heard this is done to make money, but this seems like a losing deal as many seem to go into foreclosure or turn into rental properties that lose money.

My question is around shady mortgage brokers - are these groups being scammed into investing as groups, buying expensive homes with the hope of making a lot of money (while the broker gets out with his commission) then getting screwed, or is there something else to it?

[vester72]

From what I have found out, the vast majority are people that have been scammed, or are being scammed into a get rich quick scheme buying real estate for a quick profit - all run by unscrupulous brokers.

Really sucks - if you or any group you are in, hears of a way to make easy money in real estate, it's a scam, period. Do not listen and do do get involved - you will lose money and perhaps your credit.

And if you are speculating in real estate, don't do it in the burbs - the appreciation will not be there. FWIW, look in the South Loop and Near South Side - when the Olympics come to Chicago (announcement will be in '09) you'll see some serious jumps in values along the lake from Roosevelt Road to Hyde Park.