168 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.
|126 North 6th Street, Middletown, IN 47356||Add to Favorites|
|Subdivision: Municipal Add|
|3BR/2BA, 1.5-STORY HOME. 1ST FLR HAS KITCHEN, DINING RM, LIVING RM & MSTR BR, 2 ADDITIONAL BRS ON 2ND FLR. EXTERIOR FEATURES A COVERED PORCH, CONCRETE DRIVEWAY & DETACHED GARAGE. HUD CASE #151-677076, FIXER-UPPER, SOLD IN "AS-IS" CONDITION.|
|3 Beds, 2 Bath Areas, 1860 SqFt|
|$48,000 (For Sale)
|1310 East Springhill Drive, Terre Haute, IN 47802||Add to Favorites|
|Looking for a place that has a nice size yard or a quiet place to call home? This is the place for you. Check out this 3 bedroom, 1 bathroom home located in Terre Haute. With a little bit of TLC this property could be a great home or investment propert...|
|3 Beds, 1 Bath Areas, 3109 SqFt|
|$64,900 (For Sale)
Atlantis Realty Group, INC
|415 West Walnut Street, Greensburg, IN 47240||Add to Favorites|
|Subdivision: Snider's Sub|
|Great opportunity on this ranch style home. It offers approximately 1,843 square feet of living space with 3 bedrooms and 2 bathrooms.Great floor plan.Built in 1920 this home may require some enhancements and upgrades but worth taking a look at.|
|3 Beds, 2 Bath Areas, 2502 SqFt|
|$68,100 (For Sale)
|10303 West Sr 28, Ridgeville, IN 47380||Add to Favorites|
|Tri level home with 4 bedrooms, 3 baths, family room with fireplace. Sits on 2.21 acres. Extra detached garage.|
|4 Beds, 3 Bath Areas, 2060 SqFt|
|$89,100 (For Sale)
Property House GMAC
|2277 South Main Street, Vallonia, IN 47281||Add to Favorites|
|2 bedroom/1 bath home with front covered porch, side deck, covered carport area and 2-car detached garage all on a corner lot!|
|2 Beds, 1 Bath Areas, 1088 SqFt|
|$17,900 (For Sale)
Lighthouse Realty Group, Inc
|413 Sherwood Avenue, Chandler, IN 47610||Add to Favorites|
|Auction properties are sold AS IS without any guarantee or warranty by seller. Property may be occupied. Please do not trespass.|
|4 Beds, 2 Bath Areas, 1624 SqFt|
|$42,000 (For Sale)
|15 Tract, Brazil, IN 47834||Add to Favorites|
|Subdivision: Brazilia Sub|
|Vacant Land, possible agriculture use. No mineral rights|
|0 Beds, 0 Bath Areas, 0 SqFt|
|$110,000 (For Sale)
Go Fish Realty
|2635 South Capitol Avenue, Indianapolis, IN 46225||Add to Favorites|
|3 bedroom 1.5 bath in great neighborhood. Wood deck, some hardwood floors, master bathroom, 1 car att garage, private yard. A lot of potential in this south side home!|
|3 Beds, 2 Bath Areas, 1104 SqFt|
|$62,000 (For Sale)
Wynkoop Brokerage Firm, LLC
|310 Jeffrey Lane, Pendleton, IN 46064||Add to Favorites|
|Subdivision: Freeds Village|
|3 bedroom 1 bath stone ranch on large lot in peaceful rural neighborhood between Pendleton and Anderson. This is a rare find and will not last long. Home features an enclosed front porch, large living room, hardwood floors, dining room, and much more. ...|
|3 Beds, 1 Bath Areas, 1215 SqFt|
|$99,900 (For Sale)
Wynkoop Brokerage Firm, LLC
|269 East Green Street, Martinsville, IN 46151||Add to Favorites|
|Great location. Short drive to school and in the heart of downtown Martinsville. Quick access to the highway.|
|1 Beds, 1 Bath Areas, 2216 SqFt|
|$79,900 (For Sale)
Dzierba Real Estate Services
|6510 Redland Way, Indianapolis, IN 46217||Add to Favorites|
|Subdivision: Buck Creek Village|
|HUD home selling as-is. Come and see this 3 bedroom 2.5 bath home with low maintenance yard, open floor plan, needing little work for this price in Buck Creek Village. This is close to 465 in a growing area with instant equity.|
|3 Beds, 3 Bath Areas, 1368 SqFt|
|$109,500 (For Sale)
Diverse Property Solutions Ind
|2709 Mounds Road, Anderson, IN 46016||Add to Favorites|
|This home includes 1760 sq. ft, 3 bedrooms, 1 bath and 1-car detached garage. Additional bonus room could be used as fourth bedroom. To be SOLD AS IS. Info deemed accurate, but not guaranteed.|
|3 Beds, 1 Bath Areas, 1760 SqFt|
|$44,900 (For Sale)