163 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.
|105 South 13th Avenue, Beech Grove, IN 46107||Add to Favorites|
|Subdivision: Beech Grove|
|Awesome opportunity in Beech Grove! This home appears to have newer roof shingles, exterior siding and HVAC. There are 3 bedrooms with a possible 4th on the main level. A basement, enclosed front porch and 2 car detached garage. Across the street from th...|
|3 Beds, 1 Bath Areas, 1434 SqFt|
|$67,000 (For Sale)
Dollens Real Estate Services
|6800 David Drive, Chandler, IN 47610||Add to Favorites|
|Property is offered as-is. This 1092 SQ FT 3 bedroom Chandler home features a party/storage room on the rear of the property and a covered patio -perfect for entertaining. Status "UI" insurability.|
|3 Beds, 2 Bath Areas, 1092 SqFt|
|$45,000 (For Sale)
Keller Williams Indy Metro S
|7265 West State Road 38, New Castle, IN 47362||Add to Favorites|
|This home includes 2089 sq. ft., 3 bedrooms, 1.5 baths, and 2-car attached garage. It is situated in a nice country setting, with a spacious yard, on 1.212 acres. To be SOLD AS IS. Info deemed accurate, but not guaranteed.|
|3 Beds, 2 Bath Areas, 2089 SqFt|
|$122,000 (For Sale)
|3369 Linden Street, Indianapolis, IN 46227||Add to Favorites|
|Subdivision: Ellis Invest Co|
|3 Bedroom Brick Home just a few blocks from Indianapolis Bible College, University of Indianapolis and Garfield Park! Partially fenced back Yard and Storage Shed. Driveway Parking. Large Front Porch. Repairs are needed but really worth your Investme...|
|3 Beds, 1 Bath Areas, 975 SqFt|
|$31,000 (For Sale)
AL Page Realty
|1801 East 15th Street, Muncie, IN 47302||Add to Favorites|
|Subdivision: Foster Sub|
|This home includes 1104 sq. ft, 2 bedrooms, and one bath and spacious yard. Former garage has been converted to bonus living space. Great starter home. Add your own personal touches to make this your own! Seller will not complete any repairs to the sub...|
|2 Beds, 1 Bath Areas, 1104 SqFt|
|$19,900 (For Sale)
|1290 South County Road 125 W, North Vernon, IN 47265||Add to Favorites|
|Three bedroom home has an inground pool two storage sheds and a fenced back yard. .|
|3 Beds, 2 Bath Areas, 1504 SqFt|
|$69,000 (For Sale)
F.C. Tucker Scott Lynch Group
|500 East Boulevard, Kokomo, IN 46902||Add to Favorites|
|Subdivision: Elm Tree Addition|
|This is it! Investors, flippers, owner occupant equity builders and handy persons, check this out! This beauty sits on a corner lot and is partially fenced, enclosed front porch and 2 full baths are just some of the features of this home. The "garage" has...|
|4 Beds, 2 Bath Areas, 2500 SqFt|
|$50,000 (For Sale)
Nottingham Realty, LLC
|5177 Max Avenue, Greenwood, IN 46143||Add to Favorites|
|One of a kind home located in CG schools. 2 acres of wooded prop with creek. 5 bed home 3 full baths. Gorgeous entry with new columns and fireplace. Original hardwood, large pantry in kitchen which open to vaulted GR and DR with gas fireplace. Open family...|
|4 Beds, 3 Bath Areas, 3500 SqFt|
|$249,900 (For Sale)
Berkshire Hathaway Home
|255 West Walnut Street, Elberfeld, IN 47613||Add to Favorites|
|Property is offered as-is. This 1315 SQ FT 2 bedroom Warrick County home features 2 lots and 2 detached garages(1 car and 2 car) and a shed -providing plenty of storage space. There is room upstairs for an additional 3 bedrooms. Status "UI" insurability.|
|2 Beds, 2 Bath Areas, 2036 SqFt|
|$42,000 (For Sale)
Keller Williams Indy Metro S
|2266 North 150 W, Anderson, IN 46011||Add to Favorites|
|Bed, 1 bath cape located in Anderson, IN. This is a nice size home but repairs and updates will be needed. Great potential!|
|3 Beds, 1 Bath Areas, 1792 SqFt|
|$49,900 (For Sale)
|3814 Arthington Boulevard, Indianapolis, IN 46226||Add to Favorites|
|Subdivision: Mendenhalls St Andrews|
|Great opportunity to own this spacious Traditional style brick home with 3 Bedrooms and 1.5 Bathrooms. Home has approximately 2.430 square feet of living space, a screened porch, finished attic den, unfinished basement, 2 car detached garage, fencing ...|
|3 Beds, 2 Bath Areas, 4080 SqFt|
|$55,700 (For Sale)
|222 Simmons Street, Cambridge City, IN 47327||Add to Favorites|
|There is lots of space and character wrapped up in this 2,244 sq ft 3 bedroom offering 3 full baths! Large inviting front porch, lots of hardwood flooring and original wood doors! The main floor offers a spacious dining room, living room plus den. Upst...|
|3 Beds, 3 Bath Areas, 3486 SqFt|
|$64,000 (For Sale)
CENTURY 21 Wilson & Associates