Many area home buyers are out looking at Indianapolis foreclosures. There are hundreds of these bank-owned homes on the market. Some people are discovering the advantages of buying a HUD Home in Central Indiana. HUD Homes are homes that had an FHA mortgage that went into foreclosure. They are then made available for sale by HUD. Here are a few things a buyer interested in Indianapolis foreclosures might want to consider.
- HUD Homes give an advantage for people who intend to occupy the home as their personal residence. No investors are even permitted to bid in the first ten days a home is listed.
- HUD provides a property condition report on their homes. While this is not a substitute for a home inspection by a qualified inspector of the buyer's choosing, the property condition report does have some helpful information about the condition of the home.
- Banks will often attract multiple offers for their Indianapoils bank-owned homes. They will then sometimes ask for another "highest and best" offer. With HUD, they will accept the best offer that meets their requirements.
- Each bank seems to have special addenda that need to be part of a purchase agreement. There is little uniformity of these addenda from one bank to another. With HUD Homes, there are several pages of addenda, but they don't change from one HUD Home to another.
- With HUD Homes you will know within a short time whether or not your bid is accepted. After the ten day listing period they open bids on every weekday. (Except around holidays.)
- HUD actually does an appraisal on their homes. Their pricing is based upon their appraisal. The appraisal will tell you whether or not the home is eligible for an FHA mortgage.
- HUD will disclose problems they are aware of. In addition to the property condition report, they will do a report on lead based paint if the home was built before Jan. 1, 1978.
- HUD has special incentives for buyers. In some cases certain homes in Indiana can be purchased with a very low down payment. No, it's not zero down, but it's close.
- Many of these homes are newer homes built recently developed neighborhoods. They normally need some work, but there are often opportuntities to save thousands compared to other homes in the same neighborhood.
If you are looking at buying an Indianapolis foreclosure property, you really shouldn't overlook HUD Homes. This information was supplied by Dan Rosenberger of the Real Estate Finders Team at Harvest Realty. We provide updated information about HUD Homes to our clients at no charge, no subscription fee.
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