Indianapolis Foreclosures Slow Down; City Becomes Top Market

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Indianapolis foreclosures have been slowing down, making the city one of the top real property investment markets in the county, based on data from the Metropolitan Indianapolis Board of Realtors, FinestExpert.com and other real estate firms.

According to the realtor board, there are 16,943 homes on current real estate listings in Indianapolis. Out of these, 7.1 percent or 1,213 units are bank owned properties, in addition to 1,387 units listed as pre foreclosed homes. All in all, distressed houses in Indianapolis comprise 15.3 percent of all homes for sale in the metro area.

Compared to other cities, Indianapolis has improved its housing sector over the past months. In the third quarter last year, foreclosures in the Indianapolis-Carmel metro area dropped by 15 percent both from the previous quarter and from the same quarter in 2008.

Because of positive signs shown by the Indianapolis housing market, the metro area has been chosen by FinestExpert.com as one of the top ten property investment markets in 2010. Garnering a cash-flow positive total of 299 points, based on home prices, rents, insurance, taxes and operating expenses, the Indianapolis-Carmel area was seventh in the ranking.

The report showed that Indianapolis foreclosures available for investors in the residential sector currently total 1,257 units, slightly higher than the total reported by the Indianapolis realtor board.

Improvements in Indianapolis could have also prompted the U.S. Housing and Urban Development to reject the city’s application for $35 million of the $1.93 billion second-round funding available for distressed neighborhoods. The state of Indiana was given $14 million, but the money was allocated for a housing redevelopment initiative in East Chicago.

The three states that received the bulk of the nearly $2 billion funding were Florida, which received $348 million; California, which got $318 million; and the state of Michigan, which was allocated $224 million.

According to John Bartholomew of the Indianapolis Department of Metropolitan Development, the city received $29 million in the first funding round. In the second round, HUD based its approval on types of projects presented during the application period.

To improve further the housing and mortgage sectors in Indiana, Attorney General Greg Zoeller will enforce several provisions of the mortgage reform law starting January 1, one of which is the requirement for lenders to provide mortgage borrowers a written notice of their rights as home buyers and borrowers.

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