166 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.
|2426 Winfield Avenue, Indianapolis, IN 46222||Add to Favorites|
|Subdivision: Kessler Court|
|Great investment opportunity in Wayne Township. This bi-level home is located on a mature corner lot with storage shed. The home features 4 bedrooms, 2 kitchen areas, a formal living/dining room combo, family room and 2 car attached garage.|
|4 Beds, 2 Bath Areas, 2160 SqFt|
|$47,000 (For Sale)
Keller Williams Indy Metro W
|157 Meadow Place, Hope, IN 47246||Add to Favorites|
|Subdivision: Goshen Meadows|
|Great opportunity to own this Ranch style 2 Bedroom 1 Bathroom home with approximately 912 square feet of living space. Home has a 1 car attached garage. It would make a great first home or rental property. Built in 1977 this home may need some enhance...|
|2 Beds, 1 Bath Areas, 912 SqFt|
|$40,300 (For Sale)
|4021 South 565 W, New Palestine, IN 46163||Add to Favorites|
|NEW BUILD ranch home in New Palestine on 5 acres WITH full basement! This home was custom built by the amish in 2017 and features 5 bedrooms and 3 full baths. You will love the open concept floor plan with butcher block countertops, wood burning fireplace...|
|5 Beds, 3 Bath Areas, 2986 SqFt|
|$349,900 (For Sale)
HIVE Realty Group
|2312 South A Street, Elwood, IN 46036||Add to Favorites|
|Handy Man Special! Home has been gutted and ready for the remodel. Home was once a duplex and has been turned back into a single family dwelling. 3 Bedrooms up and a bath, main level with 1 bedroom down, one bath, living room, kitchen with dining area, ...|
|4 Beds, 0 Bath Areas, 1982 SqFt|
|$20,000 (For Sale)
|60 Central Indiana Realtors to Open Doors|
|152 Punkin Court, Greenfield, IN 46140||Add to Favorites|
|Subdivision: Whitcomb Village|
|Awesome updated 3 bedroom 2 bath ranch in desirable Whitcomb Village neighborhood. This is a rare find and will not last long. Home features a fenced in back yard, large living room with a brick fireplace, new carpet and vinyl throughout, new sinks and ...|
|3 Beds, 2 Bath Areas, 1246 SqFt|
|$144,900 (For Sale)
Wynkoop Brokerage Firm, LLC
|737 East Patterson, Columbus, IN 47203||Add to Favorites|
|Subdivision: Jewell Village|
|4 bedroom 2 bath manufactured home with detached 1 car garage. Home sets on a large lot with a deck on front and back of home.|
|4 Beds, 2 Bath Areas, 1540 SqFt|
|$54,900 (For Sale)
Hoosier Brokers, Inc
|1620 Nelson Avenue, Indianapolis, IN 46203||Add to Favorites|
|Subdivision: Hollidays Garfield Park|
|Excellent opportunity in upcoming area. This large 4 bedroom 1 bath home has tons of potential and is conveniently located close to downtown, schools, shopping, restaurants, and businesses. This is one of the larger homes in the area and will not last l...|
|4 Beds, 1 Bath Areas, 2288 SqFt|
|$36,500 (For Sale)
Wynkoop Brokerage Firm, LLC
|6480 Massachusetts Avenue, Indianapolis, IN 46226||Add to Favorites|
|Subdivision: Vernon Acres|
|Opportunity time with this 3 bedroom 2 bath property sitting on almost an acre. Spacious rooms with tons of potential. Large detached garage at rear of property for cars and storage! Home can be great money maker for investors or owners alike. Hurry!|
|3 Beds, 2 Bath Areas, 1666 SqFt|
|$39,900 (For Sale)
American Wholesale Properties,
|4251 Cossell Road, Indianapolis, IN 46222||Add to Favorites|
|Subdivision: Zadock Tomlinson|
|Mobile Home Park just 5 minutes from the I-465 loop around Indianapolis. 1.9 miles from the Indianapolis Motor Speedway. The mobile home park is connected to the city municipal sewer and water systems. Property has 18 mobile home slots and a duplex/off...|
|0 Beds, 0 Bath Areas, 0 SqFt|
|$250,000 (For Sale)
No Limit Real Estate, LLC
|Interested in a Real Estate Career? Learn More|
|3721 Plum Street, Terre Haute, IN 47803||Add to Favorites|
|3 BEDROOM, 2 BATH, RANCH STYLE HOME. NICE LARGE LIVING ROOM WITH PLENTY OF ROOM FOR YOUR FAMILY TO RELAX. FORMAL DINING ROOM IS PERFECT FOR FAMILY DINNERS AND ENTERTAINING. ALL 3 BEDROOMS ARE A FAVORABLE SIZE WITH THE MASTER HAVING IT'S OWN BATH. STUNNI...|
|3 Beds, 2 Bath Areas, 1248 SqFt|
|$62,000 (For Sale)
L.J. Michaels, Inc.
|21 Maple Street, Shelbyville, IN 46176||Add to Favorites|
|Subdivision: Amsden Maple|
|Two bedroom one bath bungalow in the heart of Shelbyville. Needs some repairs and updates but is priced accordingly. Great opportunity to turn your sweat equity into a great investment. Come take a look today!!|
|2 Beds, 1 Bath Areas, 1466 SqFt|
|$32,900 (For Sale)
J S Ruiz Realty, Inc.
|1941 Bridgton Court, Indianapolis, IN 46219||Add to Favorites|
|Subdivision: Chatham Walk|
|Awesome value! Square footage and space of a single family home! Two living areas on main level, nice kitchen space with ample cabinets & counters and main level laundry. Large bedrooms, private master bathroom. Basement is finished & makes a great dry st...|
|3 Beds, 3 Bath Areas, 1794 SqFt|
|$70,000 (For Sale)
Berkshire REO, LLC