344 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.
|9829 West 400 N, Noblesville, IN 46060||Add to Favorites|
|3 Acres of Grass, Trees and Quiet! Trees on 3 sides provide Privacy with a Great view of country Farms! Well, Septic and Storage Shed. Includes a 2+ bedroom and bonus room, 2 bath Double Wide Manufactured Home on a Permanent foundation. Repairs are ne...|
|2 Beds, 2 Bath Areas, 1512 SqFt|
|$50,000 (For Sale)
Al Page Realty
|3801 North Cadet Avenue, Muncie, IN 47303||Add to Favorites|
|Great home for family parties and entertainment! Home offers an inground pool with new liner. 3 bedrooms, 1.5 baths, kitchen/dining room combo. All new lighting. Updated kitchen and bathrooms. New floor coverings throughout. New roof, siding and water hea...|
|3 Beds, 2 Bath Areas, 1224 SqFt|
|$110,000 (For Sale)
F.C.Tucker Muncie, REALTORS®
|207 Walnut Street, Gaston, IN 47342||Add to Favorites|
|Three bedrooms. Family room with fireplace. Great room. Fenced rear yard. Detached garage.|
|3 Beds, 1 Bath Areas, 1378 SqFt|
|$34,900 (For Sale)
ABC Realty & Property Mgmt Inc
|1016 Marshall Avenue, Evansville, IN 47714||Add to Favorites|
|Property is offered as-is. This 984 SQ FT 2 bedroom home features a large covered front porch that is perfect for a porch swing. Status "UI" insurability. “Plumbing failed to hold pressure at time of initial inspection. Due to this failure, HUD’s Fiel...|
|2 Beds, 1 Bath Areas, 1968 SqFt|
|$17,000 (For Sale)
Keller Williams Indy Metro S
|5056 Glenmore Road, Anderson, IN 46012||Add to Favorites|
|Subdivision: Emerald Glen|
|3 BR 2.5 BA CAPE COD IN EMERALD GLEN SUB. 1ST FLR OFFERS LIVING RM, KITCHEN W/ALL APPLCS, FAM/DINING RM COMBO, MSTR BR & LNDRY RM. 2ND FLR HAS BR 2 & 3, FULL BA & LOFT AREA. LRG DECK W/BENCH SEATS & PERGOLA IN PRIVACY FENCED REAR YARD W/PLAY HOUSE. PULL D...|
|3 Beds, 3 Bath Areas, 2180 SqFt|
|$111,300 (For Sale)
|7849 Meadow Bend Drive, Indianapolis, IN 46259||Add to Favorites|
|Subdivision: Meadow Bend|
|Property has been vacant for a while. Water standing in the basement has caused sever mold in the basement but is visibly contained to the basement with the exception of a small amount showing on the walls in the living room and dining room.|
|4 Beds, 3 Bath Areas, 3970 SqFt|
|$94,900 (For Sale)
Flanagan Realty LLC
|2530 Poplar Street, Spiceland, IN 47385||Add to Favorites|
|Spacious brick ranch located on the outskirts of Spiceland. This is a large 4 bedroom 2 bath home with plenty of room for a large family. The large detached garage is perfect for a work space and storage. Come and see it today! HUD Case#: 156-278466 IE $9...|
|3 Beds, 2 Bath Areas, 2207 SqFt|
|$108,000 (For Sale)
Golden Rule Realty, LLC
|4504 Harvard Drive, Anderson, IN 46013||Add to Favorites|
|Subdivision: Meadowbrook Manor|
|Well maintained 2 bedroom condo in a quiet neighborhood. Lots of storage in this cute condo. Spacious Dining/Kitchen combo great for entertaining. HUD case # 156-120747 IE $700. HUD homes are sold As-Is. Information deemed reliable but not guaranteed.|
|2 Beds, 2 Bath Areas, 1379 SqFt|
|$69,000 (For Sale)
Golden Rule Realty, LLC
|1707 Ashley Drive, Lebanon, IN 46052||Add to Favorites|
|Subdivision: Hickory Meadows|
|Well maintained ranch home in Hickory Meadows. 3 bedrooms and 2 full baths, Split Floor Plan. Large eat-in kitchen opens to spacious family room with vaulted ceilings and spacious open floor plan. New Roof, Siding, Gutters 2017, Furnace 2013, Fresh Pain...|
|3 Beds, 2 Bath Areas, 991 SqFt|
|$125,000 (For Sale)
RE/MAX Ability Plus
|8835 South Tibbs, Indianapolis, IN 46217||Add to Favorites|
|Subdivision: Whispering Falls|
|4 bedroom 2.5 bath with 3004 square feet. Upgraded kitchen cabinets. 9 foot ceilings on the main level. Garden tub, separate shower and huge walk in closet in the master. Really nice view of the golf course and pond with no houses behind.|
|4 Beds, 3 Bath Areas, 3004 SqFt|
|$183,900 (For Sale)
Dollens Real Estate Services
|4610 Karen Drive, Lawrence , IN 46226||Add to Favorites|
|Great starter home or investment property. Home has many recent updates including new roof, carpet and paint. Homes just needs your finishing touches.|
|3 Beds, 2 Bath Areas, 1152 SqFt|
|$62,000 (For Sale)
Green Tree Solutions, Inc
|6947 West 100 S, New Palestine, IN 46163||Add to Favorites|
|Subdivision: Brier Creek|
|Nice country setting in New Palestine school district with room to grow! This home includes 5 bedrooms, 1.5 baths, 2-car attached garage, and spacious yard. Don't miss this one! Move in, add your personal touches and make this your own!|
|5 Beds, 2 Bath Areas, 2100 SqFt|
|$117,700 (For Sale)
Wood Realty Group