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This site specializes in Indianapolis foreclosures and HUD Homes.  Be aware that any homes featured in this site are but a tiny percentage of the homes that are available.  And of course many of the HUD Homes and foreclosures will sell very quickly.  So it is best to look at this site as a sampling of the types of homes that you can expect to find when looking at Central Indiana HUD Homes and foreclosures.  Some of these might have already sold.  But there are others, and there will be more listed every week.

PS – For convenience of our clients, we have a form packet with forms used to purchase a HUD Home in Indiana.  Click on the FORMS tab for more information.

Indianapolis foreclosure buyers – take a look at HUD Homes

Many buyers are looking for a great deal on an Indianapolis foreclosure.  While the reality might not be as optimistic as the cable tv shows make it appear, there are some great buys out there.  With HUD Homes, you go into the home with some basic information: a price based on an appraisal, a property condition report and basic data about the home.  There is a bidding process in which the high bidder is awarded the property so long as it meets HUD’s minimum bid requirements.  (Often banks will throw out all bids and ask for a “highest and best”  after you have made your offer.)

But one of the biggest advantages of Indianapolis HUD Homes over typical Indianapolis foreclosures is that owner-occupants are given priority consideration.  In fact for the first ten days after a HUD Home is listed, they do not even consider offers from investors, even if the offers are higher.  And can you buy for less than appraisal?  Absolutely!!  In fact as of late July 2010, about 44% of the HUD Homes listed in Indiana had a list price below the appraisal.

Call me on my direct number at 317-709-2537 for more information.  You can see a recent list of selected Indianapolis area HUD Homes here.

New Indianapolis HUD Home list

The new list of Indianapolis HUD Homes (updated 7/23/2010) is now available.  What is usually three page list is a four page list today.  In the entire state of Indiana, there are 678 HUD Homes listed in all price ranges.  Typically that number is closer to 550 homes.

With more homes, that increases the likelihood that your bid could be accepted.  Of the 678 HUD Homes, 262 of them have a list date of 7/23.  By comparison, 228 have a list date of 7/16.

Because of changes anticipated in August, there is the possibility that HUD Homes might not be available for several weeks.  So now is the time to take advantage of this increased number of HUD Homes.

Here is the link to the updated list of Indianapolis area HUD Homes built 1990 and later:

List of Indianapolis HUD Homes (and surrounding counties) year built 1990 or later – Updated 7-23-2010

For more information about Indianapolis foreclosures and HUD Homes, call my direct number at 317-709-2537.

HUD Forms – Why don’t they do it like you do it?

I was talking to an agent from another area.  His team had recently gotten a bid accepted for a client.  But he said that putting together the forms was a chore.  I told him to take a look at my website and click on FORMS.  All of the forms needed for Indiana HUD Home bidding are right there in one PDF file.  And there is a checklist showing the list of forms and the current dates for each form.

The section on FORMS is there for your convenience.  Don’t you love it when you put a bid on a home and the agent shoves page after page of forms for you to sign?  OK – go there now.  Print out the forms (a 14 page PDF file) and look them over.  You have time to review those forms in advance.

Now for the answer to my friend’s question.  I don’t know why they don’t forms the way I do.  My clients who buy Indianapolis HUD Homes get those forms in an easy one file format with a checklist.

Indianapolis HUD Homes July 16, 2010

We have posted the list of HUD Homes in the Indianapolis Area as of July 16,2010.  This list contains homes built 1990 or later.  If you wish to consider other homes, let us know and we can get the information headed your way.  In the entire state of Indiana, there are over 600 HUD Homes available.  Many of these are only available to owner-occupants.  Bids from investors are only considered  after ten days.  So if you are planning to live in your HUD Home, you have an advantage.

List of Greater Indianapolis HUD Homes Built 1990 or later

Indianapolis HUD Homes July 9th

There were 194 new HUD listings, price reductions or back on market homes on July 9 in Indiana.  That brings the total to 567 listings.  Many of the HUD Homes in the Indianapolis area are less than 20 years old.  You can get a copy of that list here, sorted in zip code order.  These homes are subject to prior sale.  Owner-occupants get bidding priority for the first ten days these homes are listed.  Only after that ten day period are bids from investors considered.  (Yes that can be a HUGE advantage for somebody who wants to purchase a HUD Home as their personal residence.  And owner-occupants can get into some of these homes with a VERY LOW down payment with participating lenders.

List of HUD Homes built 1990 or later in Indianapolis and surrounding areas

These lists are available for our clients.  We can also get you lists of older HUD Homes in Central Indiana.  Call for that list or just to get information about Indianapolis area HUD Homes and foreclosures.  You can reach Dan Rosenberger on his direct line at 317-709-2537.

HUD Listings as of 7/2/2010

As a service for the convenience our clients, we have prepared a list of HUD Homes in Central Indiana built 1985 and later.  This three page list is sorted in zip code order.  I think that you will find it to be a very useful tool in seeing what HUD Homes are available in Indianapolis and surrounding counties.  Remember that owner occupants get priority for bidding on new HUD Listings.

List of Selected Indianapolis Area HUD Homes

Why should somebody considering Indianapolis foreclosures also look at HUD Homes?

1. Bidding priority for owner-occupants
2. You bid by the deadline and get the result by the close of the next business day.  (No waiting and waiting like the banks make you do.)
3. Property condition report is available for each listing.  You still should get a property inspection, but at least HUD does disclose what they are aware of.
4. Banks like offers with no inspection contingency.  HUD encourages you to get an inspection.
5. With HUD Homes, you know whether or not the home should qualify for FHA financing.
6. Special incentives for owner-occupants, like closing costs paid and VERY low down payments.
7. Banks like cash offers.  HUD does not give any priority to cash over normal people who get a mortgage to fund their home purchase.

For information about HUD Homes in Central Indiana, contact Dan Rosenberger at Harvest Realty.  You can reach him on his direct number: 317-709-2537

HUD Homes – Change is coming

There are changes coming in the way HUD Homes are sold.  HUD has recently awarded new contract that separate out the management and marketing functions into separate contracts.  In Indiana this means that there could be six field services companies and three asset managers handling HUD Homes.  Until July 31, HMBI will continue its function as the only M&M contractor in the state of Indiana operating out of its Chicago office.

In the past when there have been M&M contractor changes, there has typically been a period of transition time when limited numbers of HUD Homes were available on the market.  Prior to HMBI, M&M companies covering Indiana were InTown Management Group and Golden Feather Realty.  Each company has different policies in how they handle the sale of HUD Homes.  With three different asset managers operating in Indiana at the same time, we might expect to see approaches that vary according to the company responsible.

What does this mean for HUD Home buyers?  If you are wanting to purchase a HUD Home, everything should be the same until the end of July.  I would be happy to work with buyers who are qualified and serious.  Starting in August there is the possibility of limited availability of HUD Homes during the transition.  We expect to know more in the coming weeks.

Boone County – Zionsville and Whitestown

In looking over the most recent HUD listings, I noticed something unusual.  There were four HUD Homes in Zionsville and two in Whitestown – all at the same time.  And these were all built in the 1990′s or later.  They vary from small ranches to a huge 5 bedroom home with a 3 car attached garage.  It is not uncommon to see an occasional HUD Home in Zionsville, but four at the same time is quite unusual.

Now as blog posts go, somebody will be reading this a few months from now and want to know if these homes are still available.  The answer is – probably not.  But HUD Homes can be a game of wait and pounce.  You wait for the right home to come up, and then you pounce on it.  Take a look at the new HUD listings every Friday and be ready to take action.  Patience is a virtue – and as some of my clients have found out, it can be a virtue that saves them some serious dollars.

Property Condition Reports

One advantage of HUD Homes over most bank-owned foreclosures is the property condition report.  HUD actually has somebody go through the home and create a 20+ page report disclosing defects that they are aware of.  However they do say that the report is not a warranty, but only for informational purposes.  The property condition report is a good start.  It can alert a potential buyer to problems.  But it is not a substitute for the buyer getting their own inspection done after HUD has accepted their bid.

First, with the buyers present for their own inspection, they know that the inspector will inspect the attic and the crawl space.  I have seen problems such as mold in a crawl space and fire damage in an attic that were missed in a property condition report.

Second, the buyer can get an inspection that is done with utilities turned on.  As an example, the person doing the property condition report will use a compressor to pressurize the water lines.  That will show some problems, but it could also miss some.  In one home that passed the pressure test, I observed a line that had frozen and busted.  It was probably located downstream of a valve that was turned off for the pressure test.  There is a drawback to depending on a report where the plumbing, electric and heating and air conditioning systems are not functioning.

Third, it is helpful to talk to the inspector rather than just read a report.  If there is an issue, the inspector might be able to give the owner an idea of how serious the problem is or how quickly it might need to be fixed.

Bottom line:  The property condition report is great, but not perfect.  One of the reasons I like showing HUD Homes over bank-owned foreclosures is the property condition report.  If you understand its limitations, it can be a great tool to help a buyer decide about a home.

Every week is different

One week there are few or no HUD Homes in a certain area.  The next week there might be 2 in the same neighborhood.  We know that certain areas or zip codes have many one week and few the following week.  It is important to keep track of the new HUD Homes every week.  They come out on Fridays, so mark it on your calendar to look every Friday or every weekend.  Then you don’t have to feel quite so rushed to make a decision.

Recently there were a half dozen in Avon, but the same week there was only one listing in all of Boone County.  Who knows, the following week, it might be the reverse.  So HUD Homes require patience.  You need to know what you are looking for and then patiently wait and be ready to pounce on it when it does show up.

With the first-time homebuyer tax credit set to expire at the end of November (will it be extended – who knows?) that should cause a decrease in demand from renters.  Traditionally cold weather months see fewer buyers out there looking and bidding on homes.

Whether you are looking for a HUD Home in Avon or Indianapolis or Noblesville or anywhere in Central Indiana, you can call Dan Rosenberger of the Real Estate Finders Team at Harvest Realty.  His direct number is 317-709-2537.