342 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.
|2403 North Cullen Court, Indianapolis, IN 46219||Add to Favorites|
|Take a look at this well kept charming home on Cullen Ct. Three bedroom home in Warren township under 75K. It features hardwood floors and a pretty bay window. The kitchen is spacious, lots of cabinet and counter space and is well lit. Home comes with ...|
|3 Beds, 1 Bath Areas, 1102 SqFt|
|$74,000 (For Sale)
Highgarden Real Estate
|3307 Welch Drive, Indianapolis, IN 46224||Add to Favorites|
|Great opportunity on this ranch in Eagledale. Huge two car detached garage. Rear privacy fence. Big picture window in family room. Spacious kitchen with built-ins. Convenient location.|
|3 Beds, 1 Bath Areas, 1025 SqFt|
|$47,900 (For Sale)
F.C. Tucker Company
|7220 Parklake Place, Indianapolis, IN 46217||Add to Favorites|
|Subdivision: Southern Dunes|
|Over 2100+- square feet offering 3 bedrooms, 2.5 baths, living room, family room and loft area. 9 foot ceilings on the main. Master bedroom has a vaulted ceiling and the bath features a garden tub with a separate shower. Corner lot.|
|3 Beds, 3 Bath Areas, 2112 SqFt|
|$128,000 (For Sale)
Dollens Real Estate Services
|9302 North College Avenue, Indianapolis, IN 46240||Add to Favorites|
|Subdivision: College Crest|
|Completely updated stone ranch in desirable Washington Township! This 4 bed, 2.5 bath home has been completely updated throughout. Fantastic kitchen/dining area boasts updated cabinets, new granite countertops and new stainless steel appliances. All 3 ...|
|4 Beds, 3 Bath Areas, 2291 SqFt|
|$209,900 (For Sale)
Realty Wealth Advisors
|2648 South Meridian Street, Indianapolis, IN 46225||Add to Favorites|
|This property is part of package deal including 3 houses 2 garages and several vacant lots consisting of almost 2 acres. The total asking price for the package is $195,000.|
|3 Beds, 1 Bath Areas, 1728 SqFt|
|$30,000 (For Sale)
FS Houses LLC
|2612 South Meridian Street, Indianapolis, IN 46225||Add to Favorites|
|This house is a nice sized 4 bedroom 2 full bath with a garage and big yard. This property is part of package deal including 3 houses 2 garages and several vacant lots consisting of almost 2 acres. The total price for the whole property is $195,000|
|4 Beds, 1 Bath Areas, 3356 SqFt|
|$59,900 (For Sale)
FS Houses LLC
|923 West 6th Street, Anderson, IN 46016||Add to Favorites|
|Subdivision: Madison Avenue|
|This is listed in the tax records as both a single family residence and a triplex!! Fixer up being sold as is. Not far from Anderson University.|
|3 Beds, 2 Bath Areas, 2167 SqFt|
|$16,960 (For Sale)
The Poindexter R.E. Agency
|1537 Finley Avenue, Indianapolis, IN 46203||Add to Favorites|
|Subdivision: Downey & Chambers|
|Fabulous deal on this south side home next to Garfield Park. Just a short drive to downtown Indy, Fountain Square and interstate access. Located on a mature lot with covered front porch, storage shed, fenced back yard and 2 car detached garage. This 2 bed...|
|2 Beds, 1 Bath Areas, 2160 SqFt|
|$27,825 (For Sale)
Keller Williams Indy Metro W
|15880 West County Road 800 N, Gaston, IN 47342||Add to Favorites|
|Amazing find in the country!! 5 acre mini farm with outdoor riding arena. Nice two story barn with stalls and utilities. Several outbuildings. Manufactured home is over 2000sf. 4 bedrooms, 2 full baths. Lot is partially wooded and boasts a creek and trail...|
|4 Beds, 2 Bath Areas, 2016 SqFt|
|$39,000 (For Sale)
F.C.Tucker Muncie, REALTORS®
|3843 East 11th Street, Indianapolis, IN 46201||Add to Favorites|
|Attention Investors! Great opportunity to own this home in the Little Flower area. Just a short drive to downtown Indy, Irvington and Brookside Park. Features of this two bedroom, 1 full bath include a dining area, full unfinished basement w/laundry area ...|
|2 Beds, 1 Bath Areas, 1760 SqFt|
|$16,999 (For Sale)
Keller Williams Indy Metro W
|66 East Regent Street, Indianapolis, IN 46225||Add to Favorites|
|Subdivision: A V Browns S Meridian|
|Cute two bedroom bungalow close to all amenities. Home features some of the original wood work/built-ins and a covered front porch and a detached garage. Bring your finishing touches to make this home shine.|
|2 Beds, 1 Bath Areas, 2055 SqFt|
|$35,938 (For Sale)
J S Ruiz Realty, Inc.
|1611 Hollywood Avenue, Evansville, IN 47712||Add to Favorites|
|This 904 SQ FT 1 bedroom Westside home has additional finished living space in the basement. Status "UI" insurability. “Plumbing failed to hold pressure at time of initial inspection. Due to this failure, HUD’s Field Service Manager will not permit th...|
|3 Beds, 1 Bath Areas, 1795 SqFt|
|$31,000 (For Sale)
Keller Williams Indy Metro S
|298 Gettysburg, Coatesville, IN 46121||Add to Favorites|
|Subdivision: Heritage Lake|
|Great opportunity at Heritage Lake. Home needs some TLC however would make a wonderful home or investment property. Please visit Auction.com for more information and bidding requirements.|
|3 Beds, 2 Bath Areas, 1284 SqFt|
|$128,000 (For Sale)
|232 Nursery Road, Anderson, IN 46012||Add to Favorites|
|Subdivision: Mission Estates|
|3 Bedroom, 1.5 bath home near AU. Large kitchen and separate dining room with all hardwood flooring.|
|3 Beds, 2 Bath Areas, 2522 SqFt|
|$37,900 (For Sale)
RE/MAX Ability Plus
|70 Newsom Lane, Lafayette, IN 47909||Add to Favorites|
|This traditional two story home is surrounded by great neighbors and located on a quiet cul-de-sac on the south edge of Lafayette. Two bedrooms on the main and two upstairs. The master suite has vaulted ceilings, a large dual sink vanity, and walk in sh...|
|4 Beds, 3 Bath Areas, 2554 SqFt|
|$85,000 (For Sale)
RE/MAX Real Estate Associates
|130 West 4th Street, Greensburg, IN 47240||Add to Favorites|
|Rare Find! Check out this 3bedroom, 2bath ranch with 2 Attached Garage, Built in 2007, Recent Cosmetic Updates, New HVAC, Water Heater and Stainless Steel Appliances. Nice updated Kitchen opens to Family Room, situated on large lot. Ready to Move Into!|
|3 Beds, 2 Bath Areas, 1350 SqFt|
|$136,900 (For Sale)
Home2Heart Real Estate,LLC
|4650 Farrington, Indianapolis, IN 46201||Add to Favorites|
|Subdivision: Christian Park|
|Excellent opportunity in Christian Park on this 2 bedroom 1 bath home with full basement!|
|2 Beds, 1 Bath Areas, 720 SqFt|
|$24,900 (For Sale)
RE/MAX Ability Plus
|53 East Mechanic Street, Shelbyville, IN 46176||Add to Favorites|
|Subdivision: J Walker Mech|
|Must be one of the original homes in Shelbyville. Colonial home that needs your loving touches to restore to its original magnificent state. Lovely hardwood floors & built-ins. Missing bath fixtures, kitchen cabinets, HVAC and light fixtures. Great backya...|
|3 Beds, 2 Bath Areas, 2680 SqFt|
|$49,000 (For Sale)
|146 South Clearview Drive, New Castle, IN 47362||Add to Favorites|
|Subdivision: Harvey E Denney's|
|This appears to be a great value on Clearview Dr! This home offers 1508 sq ft of living space consisting of 3 bedrooms, 2 full baths plus living & family rooms. Mature trees and large fenced rear yard. Only minutes to shopping in New Castle.|
|3 Beds, 2 Bath Areas, 1508 SqFt|
|$54,900 (For Sale)
CENTURY 21 Wilson & Associates
|539 Westmore Drive, Indianapolis, IN 46214||Add to Favorites|
|Subdivision: Chapel Hill|
|Cute brick ranch located in an established neighborhood close to Ben Davis HS. This single story home features 4 bedrooms, 2 bathrooms, a nice brick fireplace in the family room and amazing hardwood floors throughout. The large basement has many options...|
|4 Beds, 2 Bath Areas, 2907 SqFt|
|$124,000 (For Sale)
RE/MAX Advanced Realty
|205 Court Street, Anderson, IN 46012||Add to Favorites|
|Subdivision: Meridian Ave North Anderson|
|Two bedroom, 1 bath home, 1848 sq. ft. home with large, covered front porch, full basement, large attic space and a 1 car detached garage.|
|2 Beds, 1 Bath Areas, 1848 SqFt|
|$28,000 (For Sale)
Wood Realty Group
|4201 East 11th Street, Indianapolis, IN 46201||Add to Favorites|
|Subdivision: Johnsons East 10th St|
|Very Nice Duplex north of 10th Street, perfect for a new or seasoned investor! Newly Remodeled and rent ready. Lots of good things happening in the Area. Between Irvington and the near east side expansion/renovations.|
|0 Beds, 0 Bath Areas, 0 SqFt|
|$84,000 (For Sale)
Neu Real Estate Group
|704 East Greenview Drive, Greensburg, IN 47240||Add to Favorites|
|This one story home has over 1500 sq. ft. of living space and features four bedrooms, 1 bath, living room, large family room w/a brick fireplace and a eat-in kitchen. There is also an enclosed back porch and a one car attached garage. Property is being so...|
|4 Beds, 1 Bath Areas, 1542 SqFt|
|$60,000 (For Sale)
Coldwell Banker Martin Miller
|3445 Caroline Avenue, Indianapolis, IN 46218||Add to Favorites|
|Lots of potential in this 2 bedroom, 1 bath home close to the bus line and minutes away from downtown.|
|2 Beds, 1 Bath Areas, 1864 SqFt|
|$18,500 (For Sale)
Ala Carte Realty