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187 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.

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Foreclosures

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.

Advantages
  • 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.

Advantages
  • 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.

Advantages
  • 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.

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330 Illinois Street, Parker City, IN 47368 330 Illinois Street, Parker City, IN 47368 Add to Favorites
Subdivision: Country Village  
Great ranch style home ready for it's finishing touches. Large fenced in backyard, perfect for entertaining. Come and see this home today! HUD Case#: 151-894415 UI. HUD homes are sold As-Is. Information deemed reliable but not guaranteed.
3 Beds, 2 Bath Areas, 1428 SqFt
$31,000 (For Sale)
Golden Rule Realty, LLC
1334 West 81st Street, Indianapolis, IN 46260 1334 West 81st Street, Indianapolis, IN 46260 Add to Favorites
Subdivision: Greenbriar  
Opportunity is knocking! This 3 bedroom split-level is located in a great location close to schools, shopping, and dining in Washington Township. Nice size lot with mature trees and attached garage.
3 Beds, 2 Bath Areas, 2406 SqFt
$114,900 (For Sale)
Ala Carte Realty
1022 North Perkins Street, Rushville, IN 46173 1022 North Perkins Street, Rushville, IN 46173 Add to Favorites
Subdivision: NA  
Welcoming front porch invites you in to this Quaint 3bedroom, 2 bath , over 1500 Sq. Ft., Spacious room sizes, bedrooms with walk in closets, large deck. A little TLC will bring this house back to life and make a nice home,
3 Beds, 2 Bath Areas, 1965 SqFt
$60,000 (For Sale)
Home2Heart Real Estate,LLC
2903 Village Park North Drive, Carmel, IN 46033
Open House
2903 Village Park North Drive, Carmel, IN 46033 Add to Favorites
Subdivision: NA  
Open floor plan Ranch approximately 1470sqft with updated windows, floors, siding, roof, ac, heater, gutters, garage door have all been replaced by current or previous owners. The master and guest bath feature many new updates including new vanities and s...
3 Beds, 2 Bath Areas, 1470 SqFt
$205,000 (For Sale)
Paradigm Realty Solutions
60 Central Indiana Realtors to Open Doors
1318 South Glen Arm Road, Indianapolis, IN 46241 1318 South Glen Arm Road, Indianapolis, IN 46241 Add to Favorites
Subdivision: Lookout Gardens  
Great opportunity and possibilities with this bungalow style home with 2 bedrooms and a bath. Enclosed front porch and utility room attached to garage for access. Storage shed for lawn items. Quiet neighborhood.
2 Beds, 1 Bath Areas, 1152 SqFt
$36,000 (For Sale)
American Wholesale Properties,
2804 Rand Lane, Anderson, IN 46013 2804 Rand Lane, Anderson, IN 46013 Add to Favorites
Subdivision: Paramount Springs  
Come see your next home! This home features 4 bedrooms, 2 1/2 baths, and a spacious backyard that is great for entertaining. Home also has a sunroom for a bug free atmosphere. Another great added measure is that this home is only minutes from shopping, re...
4 Beds, 3 Bath Areas, 1986 SqFt
$134,900 (For Sale)
Carrington Real Estate Service
8658 Belle Union Place, Camby, IN 46113 8658 Belle Union Place, Camby, IN 46113 Add to Favorites
Subdivision: Valley Ridge At Heartland Crossing  
Nice open floor plan and priced to sell. Home buyers or investors will be intrigued by this wonderful delight! Property needs a little cosmetic updating.
3 Beds, 3 Bath Areas, 2351 SqFt
$140,400 (For Sale)
BandWagon Real Estate, LLC
6327 Fairlane Dr.~2Dwest, Indianapolis, IN 46259 6327 Fairlane Dr.-west, Indianapolis, IN 46259 Add to Favorites
Subdivision: Char-le-sumac Estates  
Check out this 3 Bedroom, 2.5 Bath Bi-Level, this Spacious house has a ton of potential, over 2000Sq.Ft, Living room and Family room, Situated on nearly a half acre lot, Located in the well cared for Neighborhood of CHAR-LE-SUMAC Estates, Acton, This hous...
3 Beds, 3 Bath Areas, 2013 SqFt
$104,000 (For Sale)
Home2Heart Real Estate,LLC
463 West Hendricks Street, Shelbyville, IN 46176 463 West Hendricks Street, Shelbyville, IN 46176 Add to Favorites
Subdivision: NA  
Quaint 2 bedroom, 1 bath, a lot of potential for this Bungalow, a few unfinished repairs would make this house a nice home. Nice size backyard with 1C- Garage, alley access for off street parking.
2 Beds, 1 Bath Areas, 1382 SqFt
$39,900 (For Sale)
Home2Heart Real Estate,LLC
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609 North Oxford Street, Indianapolis, IN 46201 609 North Oxford Street, Indianapolis, IN 46201 Add to Favorites
Subdivision: NA  
Great opportunity on this two story home. Currently a single family but could easily be converted back to a duplex. Fully fenced yard with detached garage. This home features 6 bedrooms, hardwood floors, 2 kitchens, formal living room, breakfast room, enc...
0 Beds, 0 Bath Areas, 0 SqFt
$38,900 (For Sale)
Keller Williams Indy Metro W
183 West 500 N, Anderson, IN 46012 183 West 500 N, Anderson, IN 46012 Add to Favorites
Subdivision: NA  
What a huge opportunity this is with this spacious ranch home that sits on over 7 acres! Plenty of land to build detached garage and outbuildings! Super clean interior with a master bedroom that includes a full bath! You will have unlimited potential wit...
4 Beds, 3 Bath Areas, 3360 SqFt
$125,000 (For Sale)
Homesmart Realty Group
8319 Chesterhill Lane, Indianapolis, IN 46239 8319 Chesterhill Lane, Indianapolis, IN 46239 Add to Favorites
Subdivision: Mayfair Village  
Nice 3BR, 2BA ranch, fireplace in great room, lots of potential!
3 Beds, 2 Bath Areas, 1390 SqFt
$114,900 (For Sale)
J. Farmer Realty Inc.
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