278 msWoods Distressed Homes for Sale
Looking for a bargain? Include foreclosures, HUD-owned, VA owned and bank-owned properties in your search. But be aware of potential pitfalls when purchasing this any of these types of property.
Here are a few things you’ll need to know before investing in any distressed property.
While it is possible to find good foreclosure opportunities, contrary to popular belief, most foreclosure sales begin with a list price that is more than what the property is worth. After all, the bank’s goal is to satisfy all liens against the property, recoup attorney fees and other costs associated with the foreclosure process, and make a profit. So the price is usually anything but a bargain.
Occasionally, there is enough equity left in the home to make purchasing a foreclosure a good investment, assuming everything else goes right.
- Possibility of finding a home with equity (rare)
Considerations & Concerns:
- When you buy a foreclosure home you are getting the home in as-is condition. This means there could still be someone living there who has yet to move out or be evicted. And a lot can happen to a home in the meantime.
- In addition to the primary mortgage (first lien), other outstanding liens can exist, from tax liens to second and third liens, mechanic’s liens, homeowner’s association (HOA) dues and more. You are inheriting these obligations.
- Many banks will provide a pest inspection report if you ask for one. Your offer should be contingent on a home inspection.
- If you are the winning bidder, then you will be required to pay the full bid by cashier’s check.
Bank-Owned Properties (a.k.a., REO)
When a property fails to sell at the foreclosure auction, it reverts back to the bank and becomes part of its real estate inventory. At this point, the primary mortgage is written-off as a loss, and the bank will negotiate with any remaining lien-holders and pay these off, in addition to any other HOA dues, mechanic’s liens, etc.
The first thing to realize about buying a bank-owned property is that the bank is never in a hurry to sell. Unlike an individual seller, there is no personal financial need to sell the home in a hurry. There is neither frustration nor desperation. Quite the contrary, the bank will act in a calculated fashion to maximize profit.
- Possibility exists to find a home below market value.
Considerations & Concerns:
- Offers and counter-offers are almost never handled in-person, but instead via FAX, email or some other electronic means.
- Don’t be surprised if the bank’s counter-offer is not what you hoped. The bank’s counter offer must show to shareholders and auditors that the bank made a good-faith attempt to get the maximum, fair-market price. Only when this is not possible will the bank entertain a lower price.
- Be prepared to make several counter-offers before an acceptable price can be reached.
- Ask to see any and all reports, such as homeowner’s inspection reports, pest inspection reports, etc.
- You will want to have the home inspected and appraised, but this will be come at your own expense.
- Can ask that the bank make needed repairs, although they generally have no interest in doing so.
HUD-Owned Properties (a.k.a., REO)
The main difference between a HUD-owned property and a bank-owned property is that you are dealing with the federal government and not a private bank. When someone defaults on an FHA-insured mortgage, the lender forecloses on the home and then files a mortgage insurance claim with HUD. HUD then pays the lender what is owed and takes ownership of the property. HUD’s goal is to recover the amount of the mortgage insurance claim, and hopefully get a fair market price for the home.
- Opportunity exists to purchase homes below market value
- If the home meets FHA guidelines, qualified buyers may be able to purchase the home with an FHA-insured loan. Even if the home doesn’t meet FHA guidelines buyers may be still able to purchase it under FHA’s 203(k) Rehabilitation Loan program, which provides funds for the improvements in a single loan closing. The loan-to-value is based on the estimated future value of the home, with the repairs complete.
Considerations & Concerns:
- HUD homes are sold as-is, and HUD will not pay to make any needed repairs. As with any home, buyers are strongly encouraged to have the home inspected and appraised.
- Investors may bid on HUD-owned homes only after a period of time has elapsed, called the Exclusive Sales Period, at which point HUD will accept bids from all buyers, including investors.
- Bids cannot be submitted directly by buyers. HUD uses private contractors, called “Marketing & Management Contractors” to manage its inventory. These contractors work with HUD-registered real estate brokers, called Local Listing Brokers, to accept bids, which can only be submitted by HUD-approved agents.
|10162 Long Meadow Drive, Fishers, IN 46038||Add to Favorites|
|There's lots of space for a great price in this 4 bedroom home! Spacious great room with vaulted ceiling, open flowing floor plan, upper floor bonus room and split bedroom floor plan. Large deck and fenced yard. Immediate Possession!|
|4 Beds, 2 Bath Areas, 1820 SqFt|
|$182,000 (For Sale)
CENTURY 21 Wilson & Associates
|3370 Tara Lane, Indianapolis, IN 46224||Add to Favorites|
|Subdivision: Tara Townhouse On The Green|
|End unit townhouse with over 1200 sq ft. Features 3 bedrooms and 1.5 baths. Private fenced patio area for relaxing outside. Close to shopping, dining, and interstate access.|
|3 Beds, 2 Bath Areas, 1242 SqFt|
|$21,900 (For Sale)
Ala Carte Realty
|724 North Bazil Avenue, Indianapolis, IN 46219||Add to Favorites|
|Subdivision: Bullman Heights|
|So many possibilities with this property. Lots of space in this three bedroom ranch, Screen porch, Two car det garage.|
|3 Beds, 2 Bath Areas, 1282 SqFt|
|$97,900 (For Sale)
Berkshire Hathaway Home
|6885 West Us Highway 50, North Vernon, IN 47265||Add to Favorites|
|Looking for a fixer upper? This home has 3 bedrooms with an additional room that could be a forth bedroom, 2 full baths and a three car detached garage. All situated on 1 +/- acre in Hayden. Property being sold "As Is" "Where Is" with no warranties expres...|
|3 Beds, 2 Bath Areas, 1377 SqFt|
|$54,000 (For Sale)
Coldwell Banker Martin Miller
|2419 North New Jersey Street, Indianapolis, IN 46205||Add to Favorites|
|Subdivision: Fall Creek Place|
|Incredible and Rare Opportunity in highly sought after Fall Creek Place Neighborhood - This one is an Investors dream - Exterior has new windows, new exterior doors, new front porch railing, Interior is gutted and ready to rock. NO Surprises, You can ...|
|3 Beds, 1 Bath Areas, 1152 SqFt|
|$129,900 (For Sale)
Keller Williams Indy Metro NE
|4116 Knollwood Avenue, Franklin, IN 46131||Add to Favorites|
|Subdivision: Knollwood Farms|
|Excellent opportunity on this 3/2 with a split bedroom floor plan. Living room and kitchen have vaulted ceilings. Pass through from kitchen to living room. Walk in closet in master bedroom. Fenced back yard with concrete patio and mini barn. Needs some he...|
|3 Beds, 2 Bath Areas, 1128 SqFt|
|$92,500 (For Sale)
Dollens Real Estate Services
|9232 North Delaware Street, Indianapolis, IN 46240||Add to Favorites|
|Huge lot with mature trees. The home needs renovations and the items currently in the home are to be removed. The master bedroom is huge with lots of light. Arched doorways, hardwoods, and two fireplaces, with a large brick fireplace in the basement. P...|
|3 Beds, 2 Bath Areas, 3690 SqFt|
|$104,900 (For Sale)
Highgarden Real Estate
|3328 Adams Street, Indianapolis, IN 46218||Add to Favorites|
|Subdivision: Smith & Arnolds Wash Park|
|Great investment property! 3 bedrooms, 1 full bathroom. Room measurements are approximate.|
|3 Beds, 2 Bath Areas, 1024 SqFt|
|$25,000 (For Sale)
CMS Real Estate Services
|10405 Pendleton Pike, Indianapolis, IN 46236||Add to Favorites|
|.7 acre parcel on heavily traveled Pendleton Pike. Ideal of a stand alone retail business building site. To the east is AAA Heating and Air, Rally's , Buffalo Wild Wings and WalMart, so this is a great site|
|0 Beds, 0 Bath Areas, 0 SqFt|
|$180,000 (For Sale)
Wall and Associates
|4212 Spring Valley Road, Evansville, IN 47715||Add to Favorites|
|Property is offered as-is. This 1635 SQ FT 3 bedroom 2 and a half bath home features an attached 1 car garage. Status "IN" insurability.|
|3 Beds, 3 Bath Areas, 1635 SqFt|
|$70,000 (For Sale)
Keller Williams Indy Metro S
|4217 East Jackson Street, Muncie, IN 47303||Add to Favorites|
|Three bedroom ranch with exterior cedar siding has log home appearance, covered front porch and back porch. Kitchen is open to dining and family room areas. Kitchen has breakfast bar seating. Family room was set up for wood stove in the corner. Two car at...|
|3 Beds, 2 Bath Areas, 1696 SqFt|
|$55,000 (For Sale)
F.C.Tucker Muncie, REALTORS®
|10291 North Sharpbend Road, Albany, IN 47320||Add to Favorites|
|This charming 3 bedroom, 1.5 bath sits on over 2.5 acres! Quiet yet close to the city. This home features a gas fireplace, built in shelving, spacious rooms, new carpet and vinyl! Open concept kitchen with island and new appliances.|
|3 Beds, 2 Bath Areas, 1450 SqFt|
|$119,400 (For Sale)
Starr Real Estate, Inc.