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479 Distressed Homes for Sale in Central Indiana

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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1864 North Bazil  Avenue, Indianapolis, IN 46219 1864 North Bazil Avenue, Indianapolis, IN 46219 Add to Favorites
Subdivision: Post Way Manor  
Fantastic deal on this bungalow in Warren Township. This home is located on a large mature lot with fenced back yard, wood deck and mini barn. Interior features include 2 bedrooms, 1 bath, living room/dining room area, and laundry room. Won't last long at...
2 Beds, 1 Bath Areas, 836 SqFt
$29,900 (For Sale)
Keller Williams Indy Metro W
1102  Oak  Street, Frankfort, IN 46041 1102 Oak Street, Frankfort, IN 46041 Add to Favorites
Subdivision: Oak Park  
Let me tell you a little bit about this home. It needs repairs or full replacement .. 2 known area s of discoloration. Lots of sq ft for your dollar here! This home needs new roof and has had some interior water damage. There are several areas of di...
2 Beds, 1 Bath Areas, 1463 SqFt
$39,900 (For Sale)
Homeland Real Est. Connections
12413  Winding Creek  Lane, Indianapolis, IN 46236 12413 Winding Creek Lane, Indianapolis, IN 46236 Add to Favorites
Subdivision: Bradford Pointe  
3 br 2 ba ranch with a fireplace! Lots of potential in this quiet neighborhood conveniently located just off of 79th and Oaklandon! Come see this property today!
3 Beds, 2 Bath Areas, 1404 SqFt
$108,200 (For Sale)
BandWagon Real Estate, LLC
238 North 7th  Street, Middletown, IN 47356 238 North 7th Street, Middletown, IN 47356 Add to Favorites
Subdivision: NA  
Property is a two unit duplex. Main floor unit 3 bedrooms and one full bath with fireplaces in the living room and master bedroom. Upstairs unit is one bedroom and one full bath. To be sold AS-IS. Information deemed reliable, but not guaranteed.
0 Beds, 0 Bath Areas, 0 SqFt
$30,000 (For Sale)
Wood Realty Group
"Largest Real Estate Agencies" - IBJ 2015
11403  High Timber  Drive, Indianapolis, IN 46235 11403 High Timber Drive, Indianapolis, IN 46235 Add to Favorites
Subdivision: Spring Run At Winding Ridge  
TRUSTEE SALE -- MUST SELL! An unusual fine. A four bedroom ranch. House backs up to a wooded area with no neighbors behind you. Good size cement patio in back yard. Very little yard maintenance. Split bedrooms. Water heater 2016.
4 Beds, 2 Bath Areas, 1367 SqFt
$119,000 (For Sale)
Lord Real Estate Group
2010  Caribbean  Drive, Indianapolis, IN 46219 2010 Caribbean Drive, Indianapolis, IN 46219 Add to Favorites
Subdivision: Holiday Manor  
Beautiful 3 bedroom, 2.5 bedroom home. This home has a 2 car garage and a nice fenced backyard with shed for extra storage.
3 Beds, 3 Bath Areas, 1784 SqFt
$105,000 (For Sale)
CMS Real Estate Services
2013  Alexandria  Pike, Anderson, IN 46012 2013 Alexandria Pike, Anderson, IN 46012 Add to Favorites
Subdivision: NA  
Spacious 3 bedroom 1 bath home with fully fenced yard. Large 2 car detached garage with space for a workshop. Great location! HUD Case#: 151-509762 UI. HUD homes are sold As-Is. Information deemed reliable but not guaranteed.
3 Beds, 1 Bath Areas, 1392 SqFt
$39,000 (For Sale)
Golden Rule Realty, LLC
154  Tippecanoe  Drive, Noblesville, IN 46062 154 Tippecanoe Drive, Noblesville, IN 46062 Add to Favorites
Subdivision: Riverwood  
Mobile home and property for sale in Riverwood. Just a hop, skip and a jump to the river front. Enjoy canoeing and fishing on the White River. This property features off street parking, a storage shed, covered porch and lot of potential!
2 Beds, 2 Bath Areas, 1120 SqFt
$15,000 (For Sale)
Nottingham Realty, LLC
913  Iowa  Street, Indianapolis, IN 46203 913 Iowa Street, Indianapolis, IN 46203 Add to Favorites
Subdivision: Fountain Square  
This is the Right Location in Fountain Square & Bates/Hendricks...completely renovated and priced right! Nice open concept w/ beautiful new fossilized engineered floors throughout. Beautiful kitchen w/ custom cabinetry, italian tile, high level granite, m...
2 Beds, 2 Bath Areas, 1296 SqFt
$164,500 (For Sale)
Keller Williams Indy Metro NE
1,000s More local listings than
3440  Equinox  Terrace, Lafayette, IN 47909 3440 Equinox Terrace, Lafayette, IN 47909 Add to Favorites
Subdivision: Seasons Four  
Two story home on a full basement in a great neighborhood on the south side of Lafayette. This home has suffered fire damage on the upper level, but the main level and basement are in tact. Kitchen, family room, dining, and formal living on main level. ...
4 Beds, 2 Bath Areas, 3620 SqFt
$52,400 (For Sale)
RE/MAX Real Estate Associates
217 East North  Street, Dunkirk, IN 47336 217 East North Street, Dunkirk, IN 47336 Add to Favorites
Subdivision: NA  
Spacious 2 bedroom home with living room and family room. The attached garage is great for storage and staying warm in the winter. Come and see the home today! HUD Case#: 151-819535 IE $1750. HUD homes are sold As-Is. Information deemed reliable but not g...
2 Beds, 2 Bath Areas, 1284 SqFt
$32,000 (For Sale)
Golden Rule Realty, LLC
239 North Center  Street, Plainfield, IN 46168 239 North Center Street, Plainfield, IN 46168 Add to Favorites
Subdivision: Carters  
This is a Fannie Mae Property. Charming 2 bedroom/1 bath bungalow on a corner lot. Huge kitchen with lots of cabinets for storage. Fenced back yard. Don't wait - come and see today!
2 Beds, 1 Bath Areas, 1824 SqFt
$84,000 (For Sale)
Keller Williams Indy Metro W
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