336 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.
|3628 North Leland Avenue, Indianapolis, IN 46218||Add to Favorites|
|Subdivision: Harrison Heights|
|Investor special - great opportunity to repair and rent. 3 bed, 1.5 bath with brand new roof. Interior needs some repair.|
|3 Beds, 2 Bath Areas, 921 SqFt|
|$28,000 (For Sale)
|514 North Ewing Street, Seymour, IN 47274||Add to Favorites|
|Great investment property!! Located within walking distance to park, and downtown. Old charm in woodwork, transom windows, 6 panel doors, and many built ins.|
|2 Beds, 1 Bath Areas, 2025 SqFt|
|$44,900 (For Sale)
C. King Real Estate Company
|918 East Grand Avenue, Anderson, IN 46012||Add to Favorites|
|Subdivision: Beckman Place|
|Amazing renovation on this 3 bedroom, 2 bath home. New kitchen boasts staggered cabinets, crown molding, soft close doors, tile back splash, breakfast bar with new SS appliance suite. Living room is open to the kitchen/dining area. Freshly painted throug...|
|3 Beds, 2 Bath Areas, 1458 SqFt|
|$139,895 (For Sale)
|10244 Normandy Court, Fortville, IN 46040||Add to Favorites|
|Subdivision: Brooks Park|
|5 Beds, 5 Bath Areas, 5899 SqFt|
|$469,900 (For Sale)
CENTURY 21 Scheetz
|3112 South Walnut Street, Yorktown, IN 47396||Add to Favorites|
|3-Bedrooms 1.5 Bathrooms with an attached Garage in the quiet, safe Yorkshire Addition. Perfectly-sized front yard and large fenced-in back yard for anyone looking for lawn space. Surrounded and shaded by healthy, mature trees and traditional sidewalks. M...|
|3 Beds, 2 Bath Areas, 960 SqFt|
|$69,900 (For Sale)
Horizon Real Estate of Indiana
|5902 Oak Lane, Anderson, IN 46013||Add to Favorites|
|This home includes 1193 sq. ft., kitchen, living room, family room, 3 bedrooms and 1 bath. Also included are one-car attached garage and spacious yard. To be SOLD AS IS.|
|3 Beds, 1 Bath Areas, 1193 SqFt|
|$54,900 (For Sale)
Wood Realty Group
|2204 South Arlington, Indianapolis, IN 46203||Add to Favorites|
|Subdivision: Watermans Amend Arlington|
|Bungalow on corner lot of shelby and arlington. Hardwood floors. Some updates Enclosed porch 2 bdrm|
|3 Beds, 2 Bath Areas, 2112 SqFt|
|$65,500 (Accepting Backup Offers)
Home Marketing Specialists
|1711 Woodview Lane, Anderson, IN 46011||Add to Favorites|
|Subdivision: Van Buskirk Heights|
|Move right in! This fantastic ranch home has all the amenities you want and need! Formal living spaces, large family room with fireplace, 3 bedrooms, 2 full baths, laundry room with cabinets, lots of storage spaces, large attached garage and a beautiful b...|
|3 Beds, 2 Bath Areas, 1919 SqFt|
|$110,000 (For Sale)
Nottingham Realty, LLC
|112 South Western Avenue, Kokomo, IN 46901||Add to Favorites|
|Home is located in Historic District of Kokomo, Indiana. Brick entry foyer, Large fireplace, lots of storage. 4 bedrooms, 2 full baths, 1 half bath.|
|6 Beds, 6 Bath Areas, 3964 SqFt|
|$129,900 (For Sale)
|4569 West 950 S, Waveland, IN 47989||Add to Favorites|
|Very spacious home in small town. Close to two State Parks. Four bedrooms or one of the bedrooms can be an office with large built-in bookshelves.|
|4 Beds, 2 Bath Areas, 2016 SqFt|
|$38,500 (For Sale)
RE/MAX Real Estate Associates
|369 North Main Street, Upland, IN 46989||Add to Favorites|
|Spacious home with off-street parking. 1 car detached garage and additional parking spaces in alley. Home offers 3 bedrooms and 2 full bathrooms. HUD Case#: 156-105175 IE $2,000. HUD homes are sold As-Is. Information deemed reliable but not guaranteed.|
|3 Beds, 2 Bath Areas, 1265 SqFt|
|$39,800 (For Sale)
Golden Rule Realty, LLC
|14080 Farmstead Drive, Fishers, IN 46040||Add to Favorites|
|Subdivision: Reserve At Geist|
|This awesome home is just what you've been looking for. Located in the popular Reserve at Geist, you won't want to miss this opportunity. With over 3300 square feet to stretch out in you'll love the feel of granite as you enjoy the wide open floor plan,...|
|5 Beds, 4 Bath Areas, 5040 SqFt|
|$453,000 (For Sale)
The Wilmoth Group