Build South Bend: Find a Property

• Definition
  • The Multiple Listing Service (MLS) is a collection of properties for sale by different real estate brokers across the country
  • While only licensed, dues-paying real estate agents have full access to the local MLS, popular websites contain many of these listings
• Availability in South Bend?
  • Easily accessible through online listings or by contacting local real estate agents
• Where to find Information?
  • Market properties are often listed on popular home listing sites (e.g. Zillow, Realtor.com, Trulia, etc.) and in local newspapers and real estate books
  • Licensed real estate agents will have full access to MLS listings
• Property Types?
  • Both residential and commercial

• Definition
• • In an FSBO listing, the owner sells the property without the use of an agent or a broker
  • Sellers typically choose to sell their home on their own to avoid paying the real estate agent the commission for the transaction
• Availability in South Bend?
  • Easily accessible through online listings
• Where to find Information?
  • FSBO properties are often listed on popular home listing sites (e.g. Zillow, Trulia, Movoto, etc.), Craigslist, and local newspapers
• Property Types?
  • Both residential and commercial

• Definition
• When a property has been foreclosed on and the judgement is certified to the county sheriff by the county clerk, that property is then sold at the Sheriff’s Sale.
• Availability in South Bend?
  • Easy process because it’s organized and managed by local government
  • Occurs at regular intervals (Every Thursday at 10 AM) in the same location (County-City Building)
• Where to find information?
  • According to the Indiana State Code, the sheriff “must advertise the sale by publication once each week for three successive weeks in a daily or weekly newspaper of general circulation” before the sale. The Sheriff’s Office posts sale information on their website which can be found here.

• Definition
  • A tax sale is the sale of a real estate property that results when a taxpayer reaches a certain point of delinquency in his or her owed property tax payments
  • At a tax lien sale, the liens on the home are auctioned off to the highest bidder, which gives the highest bidder the legal right to demand lien collection, along with interest, from the property or homeowner
    • If the property owner is unable to pay the liens, the bidder who purchased the liens can have the property foreclosed.
  • A tax deed sale, however, sells the entire property, unpaid taxes included, at a public auction.
• Availability in South Bend?
  • Process is clear and accessible, though it is unclear how many properties are listed each year
• Where to find Information?
  • Saint Joseph County website posts a tax sale notice each spring in advance of March and September Sales sale
  • Listings are displayed online via the Zeus Auction Program
• Property Types?
  • Possibly both residential and commercial

If you purchase a property at the annual tax sale in September, there is a 12-month waiting period for the original owner to pay off the property taxes before you take ownership of the property. If the original owner does pay off the taxes, you will receive 10% added on to your original investment that the original owner also has to pay. Nevertheless, during the 12-month period, your capital is sunk and not available to be invested elsewhere.

If you purchase a property at the Commissioner Tax Sale in March, the property will only have a four-month redemption period but be aware that these often are the ones that did not sell at the September tax sale.

At the Sheriff Foreclosure Sale, the properties move in 30-40 minutes and possession is immediate. The process is an auction (where the property is sold for what is owed on it or what the bank is willing to accept) but the qualities of the properties can vary widely. Be aware that many of these properties can be put up for sale in exploitative ways through land contracts or by requiring little credit.

• Definition
  • When Federal Housing Administration loans are foreclosed on, the Department of Housing and Urban Development (HUD) takes ownership of the property.
  • HUD will in turn try to sell the property as-is (oftentimes below market price) via an online listing.
• The Department of Veterans Affairs (VA) acquires properties that have gone into foreclosure on VA-guaranteed and VA-financed home loans.
  • These properties, otherwise known as VA REO or Veterans Affairs Real Estate-Owned, are then put back on the market by private property managers that work as contractors for the VA.
  • In 2017, Vendor Resource Management (VRM) signed a 10-year contract with the VA for program management, marketing, and handling of this inventory of foreclosed homes.
• Availability in South Bend?
  • Easily accessible through online listings. HUD homes are more abundant.
• Where to find Information?
  • HUD home listings can be found at https://www.hud.gov/topics/homes_for_sale
  • VA-owned listing can be found at https://listings.vrmco.com/
• Property Types?
  • Residential only

Information about city-owned properties, including how to find and purchase information vacant lots, can be found here.

Vacant Lot Guide

• Definition
  • Conservatorship real estate is any piece of real estate property that’s held in a conservatorship
  • A conservatorship is a legal arrangement where a court appoints an individual – called a conservator – to manage personal affairs, finances, or property for someone unable to care for their own financial affairs – called the conservatee.
  • In many common cases, a conservator will look to liquidate the conservatee’s real estate holdings quickly by selling properties below market price
• Availability in South Bend?
  • Easily accessible through online listings.
• Where to find Information?
  • Conservator-sold properties are marketed similarly to traditional real estate properties
• Property Types?
  • While residential home sales are the most prevalent, theoretically both residential and commercial property could be sold through the conservatorship process

• Definition
  • A short sale in real estate is when a financially distressed homeowner sells his or her property for less than the amount due on the mortgage.
  • The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender.
  • The lender either forgives the difference or gets a deficiency judgment against the borrower requiring them to pay the lender all or part of the difference between the sale price and the original value of the mortgage.
• Availability in South Bend?
  • Easily accessible through online listings.
• Where to find Information?
  • There are several ways to find short sale properties:
    • MLS
    • Online listings
    • Courthouse listings
    • Legal advertisements
  • Property Types?
    • Both commercial and residential (with residential being more common).

• Definition
  • A class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the beneficiary will legally repossess the property.
• Availability in South Bend?
  • Easily accessible through online listings, though supply is limited.
• Where to find Information?
  • There are several ways to find bank-owned properties:
    • MLS: Most lenders list their REO properties on a Multiple Listing Service (MLS), so any real estate agent can help you identify REO offerings in your area.
    • Bank websites: Some banks have an entire department set up to sell REOs, and sections of their websites are dedicated to their listings.
    • Online specialists: Zillow has foreclosure listings for free. You can find foreclosure properties by using search filters on Zillow’s search and maps page. Most other online foreclosure listing services charge a fee.
• Property Types?
  • Both commercial and residential (with residential being more common).