The Price of Foreclosure: Unit 3C

The Price of Foreclosure:  Unit 3C

Unit 3C at the 4725 S. Michigan condo association has an interesting story.

 

As it was going through the process of foreclosure, the plantiff FCDB LBPL 2008-1, discovered that the deed was clouded with a lien from the U.S. Attorney's office for the Northern District of Illinois. 

The lien in question was filed at the Recorder of Deeds office on July 24, 2007 for a debt that dated back to 2001.

Per an abstract of judgment, the owner of unit 3C, John Welch owed the federal government $5,306.42 plus interest of July 31, 2001.

That amount grew to $6,772.49 as of April 8, 2009. 

So the question wasn't if the unit was going to be foreclosed upon, but if the government could assert its rights to collect on a debt.

According the the clerk's records, Mr. Welch also had two other units that went into foreclosure in the 4725 S. Michigan condo association.

The obvious question is how could a person secure three mortgages with an unpaid federal lien?  I always thought---and I may be mistaken---that any lien would show up on your credit report.

Whatever the explanation may be, Mr. Welch was able to obtain financing.

When the unit was finally foreclosed upon and ordered to be sold, the selling officer's report is an interesting read.

The plaintiff suing for the foreclosure, FCDB LBPL 2008-1, was the successful bidder at the auction with a winning bid of $39,750.00.

Unfortunately,the winning bid was not enough to satisfy the $182,967.40 amount due.

FCDB LBPL 2008-1 needed $182,967.40 to walk away with the judgment satisfied, but instead ponied up another $39,750.00 to buy the property back.

I don't know about you, but to me that's a head scratcher.

Perhaps FCDB is trying to wait out the market correction.  Perhaps they didn't want someone else walking away with the unit for a considerably lower bid.  At this point it's musings and speculation.

Unfortunately a building sits vacant and damaged from the recent fire

A struggling community has an eyesore and potential crime haven while adjacent homeowners have taken a hit on their property value.

They're the ones paying the true cost of these foreclosures.

 

 

 

 

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