Thinking About Buying a Foreclosure?

Here is an updated list of executive homes that are foreclosed. Prices start at $300,000. I will update this often. An example, how about Crooked Stick Estates for less than $600K? (View all 32, last updated July 2).

Updated 7/2/2009

You can also search this site for Fannie Mae foreclosures and contact me about any you would like more info about or would like to make an offer on. Many are eligible for special fast track financing with no mortgage insurance, no appraisal fee and more perks.

Currently, there are over 18,000 homes for sale in the central Indiana area alone. Of these, there are over 900 bank owned or foreclosed homes. This can represent an opportunity for today's home buyers because the banks do not want to own real estate. If you are considering purchasing one of these homes, there are some quirks you need to be aware of before making an offer.

• These properties are generally sold in "as is" condition. You are encouraged to have the property inspected, but don't expect the bank to make any repairs. If a major defect is discovered during the inspection, it may be possible to renegotiate the purchase price.
• You will generally have only 30 days to complete the transaction. Before making an offer, it is a good idea to have your financing in place as much as possible. You will need to provide a letter showing you are pre-approved, or if you are paying cash, you will need to provide proof of funds. Most banks will charge a per diem for every day past your initial closing date that you delay closing; usually $100.00.
• Most of these homes will not qualify for FHA or VA financing in "as is" condition.
• Generally, the utilities have been turned off. You will probably be responsible for having the home "dewinterized". This usually costs about $250.00. If you decide to not complete the transaction because of a major defect found during the inspection and you and the bank can't arrive at a fair solution, you will be responsible for having the home "winterized". This can be another $250.00 charge.
• Some banks will require that you have the utilities put in your name for the inspection and it is your responsibility to have them turned on.

I usually do not recommend a first time buyer consider purchasing a foreclosure unless they have the financial means and extensive experience with major home repairs.

These homes need to be sold and many times, you will move in with considerable equity. Just be prepared for a different home buying experience.

There is a type of loan called a FHA 203K that incorporates the purchase price of the home and the fix-up costs. Watch a video produced by one of my preferred lenders that explains the process.

Contact me with any questions about any property you are interested in. You can also sign up to receive information about foreclosed properties.

Here is a good web site that will answer your questions about the $8,000 First Time Home Buyer Tax Credit. Download the IRS form to claim the credit.

Interest rates have plummeted recently. Click here to use a calculator that will compare today's interest rates to rates just a few months ago. See what your monthly payment can be today compared to a few month ago or see how much more home you can buy today by entering a budgeted monthly payment.