178 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.
|3766 Totem Lane, Indianapolis, IN 46208||Add to Favorites|
|Subdivision: Parrys Sub|
|Absolutely do not make homes like this one anymore. A real brick beauty with slate roof built in 1930 with the family in mind featuring a large open foyer with circular staircase to bedrooms and private rear stairway as well. The master bedroom with sitti...|
|6 Beds, 6 Bath Areas, 4240 SqFt|
|$533,900 (For Sale)
American Wholesale Properties,
|Address Not Disclosed, Indianapolis, IN 46229||Add to Favorites|
|Large home and plenty of yard space. Property is being sold in AS-IS condition. Seller will not make any repairs. Basement has recently been flooded due to sump pump not working. All buyers and agent must sign a mold disclosure prior to showing.|
|4 Beds, 3 Bath Areas, 2324 SqFt|
|$152,880 (For Sale)
BandWagon Real Estate, LLC
|5456 Antoneli Lane, Indianapolis, IN 46237||Add to Favorites|
|Subdivision: Arlington Acres|
|Amazing opportunity in this 3 bedroom 2 bath home on the Indianapolis SE side. This home has a 1 car attached garage, 2 separate family rooms, and a basement. SEE AGENT REMARKS.|
|4 Beds, 2 Bath Areas, 2040 SqFt|
|$87,000 (For Sale)
Berkshire Hathaway Home
|1724 North Lafountain Street, Kokomo, IN 46901||Add to Favorites|
|Subdivision: Park View|
|Super clean and ready for the smart investor to add to the portfolio! Main level laundry room and eat-in kitchen! Exterior in good condition and you have plenty of parking rear of home to build a garage! Enjoy the evenings on the covered front porch! Take...|
|2 Beds, 1 Bath Areas, 768 SqFt|
|$14,900 (For Sale)
United Real Estate Indpls
|7416 King George Drive, Indianapolis, IN 46260||Add to Favorites|
|Subdivision: Lions Head|
|The best kept secret for gated living. Enjoy the pool and clubhouse and paid heat, water/sewer. Beautiful fireplace in hearth room, generous eat in kitchen PLUS a formal dining room for entertaining. Large living room with built ins and lots of light.|
|2 Beds, 2 Bath Areas, 1975 SqFt|
|$120,000 (For Sale)
Ala Carte Realty
|1827 North Sharon Avenue, Indianapolis, IN 46222||Add to Favorites|
|Subdivision: West Haven|
|This great 3bd 2ba very little work to make it like new again. Built in 2002 makes it one of the newer homes in the neighborhood.|
|3 Beds, 2 Bath Areas, 1272 SqFt|
|$49,900 (For Sale)
Highgarden Real Estate
|3920 Zeenat, Indianapolis, IN 46254||Add to Favorites|
|Subdivision: Guion Pointe|
|Here it is. A rare 5 bedroom home with a full basement. Come see this expansive home with a oversized living room and a large kitchen for entertainment. This corner lot home is much larger than it appears. It wont take much to make this one shine again. S...|
|5 Beds, 3 Bath Areas, 2990 SqFt|
|$130,000 (For Sale)
Wynkoop Brokerage Firm, LLC
|6288 West William Street, Knightstown, IN 46148||Add to Favorites|
|This 2 bedroom, 1.5 bath home is larger than appears, Large Kitchen and Dining room, bonus room that could be converted to bedrooms, game room etc., plus 1C-A Garage, situated on large lot.|
|2 Beds, 2 Bath Areas, 1492 SqFt|
|$36,000 (For Sale)
Home2Heart Real Estate,LLC
|6912 Carters Grove Drive, Noblesville, IN 46062||Add to Favorites|
|Subdivision: Settlers Mill|
|Huge Glamorous Living Room with Pillars, Fireplace and Elevated Ceiling with Unique Focal Point! Very efficient Design of Dining Area, Kitchen and Laundry Area and accessed from Living or Dining Room, and Garage for easy unloading Groceries! Beautiful Ch...|
|2 Beds, 2 Bath Areas, 2611 SqFt|
|$280,000 (For Sale)
AL Page Realty
|6810 South 1050 W, Owensville, IN 47665||Add to Favorites|
|Property is offered as-is. This 2088 SQ FT 3 bedroom Owensville home features just over 3 and a half acres of land. Status "UI" insurability.|
|3 Beds, 2 Bath Areas, 2088 SqFt|
|$82,000 (For Sale)
Keller Williams Indy Metro S
|5238 Moonlight Drive, Indianapolis, IN 46226||Add to Favorites|
|Subdivision: Brendon Park|
|Great opportunity in well maintained upcoming neighborhood! Huge home features 4 bedrooms and 3 full bathrooms. It appears at one time the home had a 2 car attached garage and that could possibly but put back functional as a garage, currently being used a...|
|4 Beds, 3 Bath Areas, 2142 SqFt|
|$99,900 (For Sale)
RE/MAX Advanced Realty
|5624 South Rowena Court, Pendleton, IN 46064||Add to Favorites|
|This charming ranch style home sits on a large lot in a cul-de-sac. This home features 3 bedrooms, 2 bathrooms and an extra large family room. Out back you will find a nice wooden deck and storage shed.|
|3 Beds, 2 Bath Areas, 1612 SqFt|
|$100,000 (For Sale)
RE/MAX Advanced Realty