With the government passing measures to curb the ongoing foreclosure crisis, some relief is expected amidst the foreclosures in Chicago. However, a large number of homes in Chicago have already been foreclosed upon; many others are in pre foreclosure and there are more home owners out there who still risk facing foreclosure.

While this situation, from the point of view of a home owner, might not look good, this is being looked upon as a good time to buy residential property. Since foreclosure homes are known to sell at discounted prices, they become the more viable option.

You can use various resources to look for foreclosure homes. The internet is a good source to look for homes in foreclosure across the country, and foreclosure homes in Chicago feature in almost all foreclosure listing websites. Financial institutions which deal in home loans are prone to have lists of homes foreclosed upon by them. Legal sections within local newspapers also carry foreclosure listings. Besides, you can always get in touch with real estate agents who have first hand information about local foreclosures.

You can buy a foreclosure home during various stages. Once a home enters pre foreclosure, you cab buy it from the existing home owner. Since home owners in pre foreclosure have stipulated time periods to sell the homes in, they are known to accept offers that are considerably lesser than the homes? market value. As far as an offer can take care of the debt owed to the lender, there is a possibility of it being accepted.

Homes which do not sell in pre foreclosure are put up for sale at public foreclosure auctions. If you are new to the process, make sure you do sufficient research before you decide to bid at an auction. A good idea would be to sit through an auction before participating in one. Auctions, too, are known to offer some very good deals.

Deeds of homes that pass the auction stage are transferred to the lenders who hold the mortgage on the respective houses. Lenders are often in a hurry to offload foreclosure homes and this can result in some very good discounts. Banks are also known to pay the real estate agent's fee (if you are using one) and the closing costs involved in the sale of the house, to lure customers. These homes are considered to be a safe bet because any past arrears on the property are also generally taken care of by the lender upon foreclosure.

All these stages of foreclosure are known to offer some great deals. You do not have to limit yourself to buying any one kind of foreclosure home. It is best to explore all possibilities before you make that decisive call.