Buying foreclosures from auction in Chicago (real estate market, condos, eviction)

[koctail]

I bought a couple of condos in Chicago 2012 that were bank-owned foreclosures. The market has improved a lot and I can sell these for more than double what I paid. These condos were all listed by realtors so buying them was straightforward.

I was now thinking to buy some more foreclosures directly from auction. It seems that is the way to go to make some real money. I used auction.com but I can not find what the asking bid is ? Am I correct that you have to buy them unseen ? Also you would have to evict the tenants and pay an outstanding liens? Sounds like a huge gamble to me. They should be giving the property's away for free if that is the case..

I was thinking to just attend an auction to see how the process goes. Do I need to come with a certified check ?

[MarianRavenwood]

If the property is occupied, yes you will need to take steps to move the tenants out. That may not technically be 'eviction'.

In Chicago, you must provide tenants with 90 days notice to vacate before you can take legal action against them. During that time you may not neglect the property, withhold maintenance or utility service, or take any action that may be construed as harassment or pressure to move sooner. You may also be required to pay relocation expenses for the tenants.

You should know that legal eviction proceedings are lengthy and costly (typically 6 weeks to a few months, not including the first 90 days you were required to provide them to vacate); it's cheaper to help tenants move than to force them.

Yes you generally buy the property unseen. Even if you go to a live auction, you typically don't get to look at more than the outside of the property. You certainly won't be able to get an inspection. Yes it's a huge gamble. Yes there are potentially huge costs. Don't like it? Then don't do it. No one ever said you were entitled to make a huge profit with no risk.

[chet everett]

The stability of the real estate market was far riskier in 2012, you likely will not do nearly as well now...