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375 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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3507 Apple Street, Indianapolis, IN 46203 3507 Apple Street, Indianapolis, IN 46203 Add to Favorites
Subdivision: Prospect Heights  
3 Bedroom Cottage. In an area where everyone knows their Neighbor! Pet friendly with a fence. Built in 1963 and can use updates and some repair - well worth the Investment!
3 Beds, 1 Bath Areas, 972 SqFt
$25,300 (For Sale)
AL Page Realty
539 West Taylor Street, Shelbyville, IN 46176 539 West Taylor Street, Shelbyville, IN 46176 Add to Favorites
Subdivision: NA  
Larger then it looks! This home offers entry/office area, formal dining room with arched doorways, kitchen with lots of cabinets and counter tops, bonus room opens up to deck, extra storage in hallway,full unfinished basement, storage sheds and additional...
1 Beds, 1 Bath Areas, 2032 SqFt
$42,000 (For Sale)
Infinity Realty Inc.
6252 East Southport Road, Indianapolis, IN 46237 6252 East Southport Road, Indianapolis, IN 46237 Add to Favorites
Subdivision: Southport  
Check out this Quaint 2 bedroom, 1bath Bungalow with Basement and 2 Car Detached Garage, Situated on .69 acre lot. This house has so much potential to be an adorable home. Welcoming front porch, Living room, Kitchen with Breakfast nook, Full Basement, nic...
2 Beds, 1 Bath Areas, 2160 SqFt
$98,500 (For Sale)
Home2Heart Real Estate,LLC
2935 Collier Street, Indianapolis, IN 46241 2935 Collier Street, Indianapolis, IN 46241 Add to Favorites
Subdivision: Mars Hill  
Great opportunity in this near Southwest side 2 bedroom 2 bath home. This property boasts a fenced yard and 2 car detached garage. Take note of the large family room and dining room. See this property today.
2 Beds, 2 Bath Areas, 2160 SqFt
$31,000 (For Sale)
Wynkoop Brokerage Firm, LLC
Never miss another distressed home listing!
2037 Glendora Drive, Indianapolis, IN 46214 2037 Glendora Drive, Indianapolis, IN 46214 Add to Favorites
Subdivision: Parc Estates  
Amazing opportunity in this Wayne Township 2 story home with a basement in Parc Estates. This 4 bedroom 2.5 bath home has plenty of space for a large family. Take note of the large master suite, basement, mature landscaping, and oversized living room. Thi...
4 Beds, 3 Bath Areas, 2401 SqFt
$124,500 (For Sale)
Wynkoop Brokerage Firm, LLC
5799 East 200 S, Crawfordsville, IN 47933 5799 East 200 S, Crawfordsville, IN 47933 Add to Favorites
Subdivision: Longs  
Brick ranch with full finished basement. 3 bedrooms and 2 full baths, large kitchen/dining combination. 1 car attached garage
3 Beds, 2 Bath Areas, 1200 SqFt
$74,900 (For Sale)
Carpenter, REALTORS®
1130 Audubon Road, New Castle, IN 47362 1130 Audubon Road, New Castle, IN 47362 Add to Favorites
Subdivision: NA  
Charming brick home built in 1939. Home features a large living room with fireplace. There is a dining room and a galley kitchen. There are two bedrooms on the main level. The upstairs could be used as a possible third bedroom or office. This home is...
2 Beds, 1 Bath Areas, 2038 SqFt
$72,490 (For Sale)
Legacy Real Estate Partners
444 South St, Hope, IN 47246 444 South St, Hope, IN 47246 Add to Favorites
Subdivision: Hope  
Spacious 3 bedroom, 3 bath manufactured home with attached 2.5 car garage. The breezeway to the garage adds additional space.
3 Beds, 3 Bath Areas, 1593 SqFt
$28,000 (For Sale)
Home Marketing Specialists
410 North Grant Street, Edinburgh, IN 46124 410 North Grant Street, Edinburgh, IN 46124 Add to Favorites
Subdivision: NA  
3 bed, 1 bath home with paved parking area. Kitchen and dining room. 2 outbuilding sheds. Easy access to US 31 or I-65. Most of the back yard is fenced, with only a few damaged or missing pieces.
3 Beds, 1 Bath Areas, 1257 SqFt
$32,900 (For Sale)
Home Marketing Specialists
Never miss another distressed home listing!
4950 Potomac Square Way, Indianapolis, IN 46268 4950 Potomac Square Way, Indianapolis, IN 46268 Add to Favorites
Subdivision: 6500 Georgetown Hpr  
Beautiful Pike Township condo located close to schools and Northwestway Park. This spacious 3 bedroom 2.5 bathroom condo features a large living room with fireplace, eat in kitchen and 2 car attached garage. The large master suite features double sinks ...
3 Beds, 3 Bath Areas, 1478 SqFt
$72,000 (For Sale)
RE/MAX Advanced Realty
323 East Center Street, Dunkirk, IN 47336 323 East Center Street, Dunkirk, IN 47336 Add to Favorites
Subdivision: NA  
Investment Opportunity... Vinyl sided ranch home features 2 bedrooms, kitchen dining combo, laundry room, living room, one full bathroom, 1 car detached garage, storage shed...
2 Beds, 1 Bath Areas, 1068 SqFt
$9,900 (For Sale)
F.C.Tucker Muncie, REALTORS®
2114 Hercules Avenue, Evansville, IN 47711 2114 Hercules Avenue, Evansville, IN 47711 Add to Favorites
Subdivision: NA  
Property is offered as-is. This 739 SQ FT 2 bedroom home features a 1 car attached carport. This property is eligible for 203k financing. Status "IE" insurability. “Plumbing failed to hold pressure at time of initial inspection. Due to this failure, HUD...
2 Beds, 1 Bath Areas, 1099 SqFt
$19,000 (For Sale)
Keller Williams Indy Metro S
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