Consumer

CHICAGO (CBS) ― The foreclosure crisis is something we're all getting familiar with. There were 90,000 foreclosures in Illinois last year alone.

Now, many of these houses are back on the market -- and priced to sell.

CBS 2's Dorothy Tucker reports, with foreclosures hitting an all-time high, the first "foreclosure bus tour" has hit the Chicago metro area.

Recent tour destinations included Schaumburg and Hoffman Estates, with eight properties being viewed. There was a two-bedroom condo that two years ago went for $158,000, now on the market now for $125,000. And a four-bedroom home that sold in 2006 for $440,000. Now, it's listed at $320,000.

Tour-goers not only get to see the great values that are out there, but they also get a good education on what to expect when buying a foreclosed home.

"People who had these homes couldn't afford to maintain these homes so couldn't afford to make repairs," said Richard Kimble of Allied Home Mortgage.

What homebuyers on the tour and others in the market for foreclosures quickly learn is that the best deals often mean the most repairs.

"This property has a long history," Marki Lemons of the Chicago Association of Realtors. "It had sold two years ago for $250,000."

Today, the four-bedroom condo in the heart of Chicago's Bronzeville is listed for only $99,000.

But much is missing, including the stove, refrigerator and sink. The estimated cost of repairs is another $25,000.

"You have to be prepared for the worst when dealing with a foreclosed property," Lemons said. "Do you have adequate savings? Do you have the knowledge and the skill set to do the work?"

But some people are willing to take the risk for a chance to buy property for as much as 50 percent below market value.

But just how do you find these great deals?

Auctions are a possibility, but those sales are more for experienced investors. You can find auction properties on Web sites.

Foreclosures are also listed in the Law Bulletin and private subscription services.

But for the average buyer, realtors are your best source. They can direct you to pre-foreclosures still occupied by the owner or foreclosed homes being sold by a bank.

Karrie and Martin Zamora worked with a realtor and bought a bank-owned foreclosure.

"It was a deal we could not pass up," Martin Zamora said.

The four-bedroom, four-bath home in the Western suburbs sold for $150,000 below the last appraisal. It needed some repairs, but nothing major.

The one piece of advice the couple would give potential buyers is to find a good inspector.

"You need someone that's a professional to know what to look for, to make sure you're buying a good home that you want to raise your family in," Karrie Zamora said.

Experts say that if you buy a foreclosure, don't expect to sell your property quickly at a profit. The market is adjusting and could even drop further. These are properties you will probably need to hold onto for three or four years.

There's a lot to learn, and there are even foreclosure classes out there to teach you the ins and outs. Here are some of the resources we found:

Classes to learn about buying foreclosures: (there is a fee for classes)

Classes taught by Marki Lemons
www.chicagorealtor.com -- click on "education"

Classes taught by Mary G. Richardson
Personal Investment Corporation
847-993-3010
www.foreclosurewarehouse.com/blog

Foreclosure Bus Tours:
RepoHomeTour
877-343-5100
www.repohometourchicago.com

Finding Foreclosure Properties:
-Law Bulletin Foreclosure Report ($14.00)
312-644-7800
-Contact a realtor: www.chicagorealtor.com

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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