Indiana offers Hoosiers incentives to purchase foreclosed homes

by John Paul (jpaul@wsbt.com)

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Incentives to buy foreclosed properties

Indiana lawmakers are helping people like Kara Kaminski, who recently bought a foreclosed home, by offering incentives toward the purchase of foreclosed properties with the Market Stabilization Program. (WSBT photo)

By WSBT News1

Story Created: Apr 9, 2009 at 5:30 PM EST

Story Updated: Apr 14, 2009 at 12:29 PM EST

SOUTH BEND — Indiana is offering qualified home buyers thousands of dollars toward the closing costs if they buy a foreclosed home through the state's Market Stabilization Program.

Even if you don't qualify, Realtors and lenders say they can still find ways to save you thousands toward the purchase price of a home.

"It's indeed a buyers market," said Timothy Robinson, owner of Exit Real Estate of Michiana. "There's several packages and several programs that would facilitate a buyer getting into a home in this day and time."

Kara Kaminski had her eye on several homes in one St. Joseph County neighborhood, she was also looking for a good deal.

"We just drove around the neighborhood because we liked it," Kaminski said. "We wrote down addresses to homes that were on sale."

"For sale" signs sit on several front lawns in the neighborhood just west of Clay High School, but there will be one less sign. In two weeks, Kaminski will have the keys to her new home, a former foreclosed property.

"I'm excited to actually have our own place," she said.

It comes at a price, in line with her budget.

"We figured we could offer a pretty low price and get it," Kaminski said.

Indiana lawmakers are doing more to help people just like Kaminski, offering incentives toward the purchase of foreclosed properties with the Market Stabilization Program.

Timothy Robinson, broker and owner of Exit Real Estate, says the rise in incentives makes foreclosed homes an even better deal.

"It makes a real unique situation for the first-time homebuyer," Robinson said.

In order to take advantage of the $25,000 interest-free loans, you have to qualify and agree to terms — including staying in your home for at least 10 years.

The purchased foreclosed property must be the homeowner's principal residence and you must agree to take an eight-hour pre-purchase education course.

There are also income and location qualifications.

Robinson adds there are other incentives like the stimulus tax credit and programs unique to the area that make buying this or any other foreclosed property affordable.

Robinson says low interest rates, currently at a 30-year low, also make home-buying more affordable.

"It would be hard to pass up," he said.

Kaminski didn't, and now her attention is focused on making her house a home.

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