Foreclosure Deals

Bargain hunters and first-time home buyers alike almost always have questions about the value of buying foreclosed homes. Realtors have access to listings of foreclosed homes being sold at prices that are extremely competitive in today's housing market.

When realtors show potential buyers foreclosed properties, they should make every effort to convey the difficulties that a new home owner may experience once the sale is complete. If you are considering the purchase of a foreclosure property that may be too large of a commitment for your lifestyle, a good realtor will be honest and share his or her concerns with you. This is because good realtors want their clients to be happy with their purchase, and therefore try to ensure that each client is making the best decision for his or her particular circumstances.

Alaska Bank Owned ForeclosuresLogistically, the process of searching for a foreclosed home is very similar to that for any other home. Specific listing services provide information to potential buyers, and realtors receive additional information that they can share with potential buyers.

Potential buyers usually want more information about foreclosed homes than what is available. Understand that when you seek information about a home being sold through a foreclosure sale service, your realtor will probably need additional time to find the answers you need.

A foreclosure is almost always a home that was purchased by a buyer with a federally insured mortgage. The buyer then defaulted on the loan and the home went into foreclosure. Because the borrower's mortgage was federally insured, the insuring agency was required to satisfy the remaining balance of the loan, in essence buying the home from the lender.

Obviously, the government does not want or need this surplus property. Therefore, the government usually sells the property to a company which specializes in the sale of foreclosed properties. These agencies are located across the country and list thousands of homes for sale.

Some of the higher-quality homes in affluent areas are sold immediately, perhaps even before they are officially listed for sale.  This leaves average home buyers with opportunities to save a significant amount of money if and when they find a home that works well for their current situation.

Many foreclosed homes have been vacant for a long time before the listing agency places them on the market for sale. The risk of problems arising from that vacancy may leave buyers disillusioned when they finally have a chance to visit the homes they are considering.

Also, in some foreclosure situations, the previous borrower may not have maintained the home adequately and there may be missing or damaged items throughout the home. Sometimes foreclosure homes are referred to as buyer beware, because they are almost always sold as-is.

The three most common questions that realtors are asked about foreclosed properties:

1. How Can I Find a List of Foreclosures?

Stay away from companies that promise to provide you with a list of homes that you can purchase for pennies on the dollar. These companies have been known to provide sellers with lists of homes that have already sold, or lists of homes that are already available for free through realtors.

The same federal agencies that put the homes up for sale may be willing to extend financing to potential buyers. These agencies will sometimes give the buyer grant money or a low-cost second mortgage loan to be used for the repair.

The Internet is a good place to begin your search. Most reputable agencies place their listings of foreclosed properties online.

If you want to know whether additional foreclosed homes are for sale in your area, contact us. Our realtors would be more than happy to meet with you to discuss the possibilities.

2. Do I get pre-approved for a regular mortgage?  Or Am I Required to Pay Cash?
A common misunderstanding among potential buyers is that unless they are prepared to pay cash on the spot, they cannot purchase a foreclosed home. This is simply not true. Some lenders offer special loan programs aimed at borrowers who intend to buy a foreclosed home.

Lender appraisals and inspections may sometimes make it difficult to obtain a mortgage for a foreclosed home that has been damaged or is in need of significant repair. Consequently, the same federal agencies that put the homes up for sale may be willing to extend financing to potential buyers. These agencies will sometimes give the buyer grant money or a low-cost second mortgage loan to be used for the repair of the home.

In sum, you do not need to pay cash. However, you may need to borrow a specific type of mortgage loan, depending on the home's condition and price.

3. Will I save a lot by buying a foreclosed home?
Another common misconception is that foreclosed homes are priced at pennies on the dollar. Well, if you consider this phrase to mean 99 pennies on the dollar, then you may be correct. Generally, foreclosed homes are listed for sale at their approximate market value, according to the home's location and condition.

Some foreclosed homes sell for very low prices, but in most of those cases the homes were razed in order to make room for new construction. More commonly, high-priced homes in affluent areas sell for a few percentage points less than their current market value. If this is the type of deal that you are looking for, then definitely consider purchasing a foreclosed home.

A good realtor will warn you up-front that the costs associated with buying a foreclosed home can be significant. The buyer may be required to perform very costly repairs before occupying the property. Also, these buyers may be unable to take advantage of low interest-rate specials offered by lenders.

If you are considering the purchase of a foreclosure, be realistic in your expectations and prepare to expect the unexpected. Many buyers are thrilled with their home after purchase, but others are forced to complete months of costly repair work before they can move in. As long as you investigate the possible options, including the available mortgage and assistance programs, you will be an educated consumer prepared to make an educated purchase. Buying a home is often the largest investment that you will ever make, so you need to feel secure in the knowledge that you have invested wisely.

If you are interested in purchasing a foreclosure property, many realtors will offer you the benefit of their experience and expertise. Realtors normally do not work with these types of sales every day, but they do have access to information and property listings that can help you decide whether buying a foreclosed property is the right option for you.

Bank Owned Foreclosures

54 Properties Found. Showing 1-12
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177 5th Street
Ouzinkie, AK 99644
177 5th Street Ouzinkie, AK 99644
1 of 29
$49,900 ( $38,600 )
Subdivision: Ouzinkie Tr C
BEDS
3
BATHS
1
SQ.FT.
984
BUILT
1981
ON SITE
108Days
MLS
17-15229
Single family ranch home on just under .5 acre lot. Property has a sauna, bath house and storage shed. See attachment for PAS requirements and WFHM offer submittal information in MLS document...
Mi 11 Edgerton Highway
Chitina, AK 99586
Mi 11 Edgerton Highway Chitina, AK 99586
1 of 13
$62,500
Subdivision: Kings Plat
BEDS
3
BATHS
3
SQ.FT.
1,500
BUILT
1979
ON SITE
160Days
MLS
17-11543
Beautiful View Lot with a incomplete attempt to make a home from a portion of the old Kenny Lake School. Place has been Vandalized and used a flop house so there is a lot to do to make livable.
2690 Nikolai Street
Ninilchik, AK 99556
2690 Nikolai Street Ninilchik, AK 99556
1 of 5
$77,500 ( $12,400 )
Subdivision: Happy Valley Vista
BEDS
3
BATHS
2
SQ.FT.
1,714
BUILT
1979
ON SITE
78Days
MLS
17-16848
Log sided home with partial inlet view. Previous listing indicates newer well and septic. Huge 3.5 acre lot provides for endless possibilities.
4010 Reka Drive
Anchorage, AK 99508
4010 Reka Drive Anchorage, AK 99508
1 of 20
$78,200 ( $19,842 )
Subdivision: Mountain Ash
BEDS
2
BATHS
2
SQ.FT.
1,152
BUILT
1971
ON SITE
67Days
MLS
17-17334
PRICE REDUCED HUD Townhouse Style Design Condominium for Sale. 2 Bedrooms, 1.5 Bathrooms, Assigned 1-Car Carport, Fenced-in patio. Wood Stove. The Condominium is sold ''As-Is.'' Buyer to Verify...
14779 W Apryl Lane
Big Lake, AK 99652
14779 W Apryl Lane Big Lake, AK 99652
1 of 18
$79,900 ( $60,100 )
Subdivision: Idle Wild
BEDS
3
BATHS
2
SQ.FT.
1,680
BUILT
1984
ON SITE
116Days
MLS
17-14666
This property is located on a near acre in Big Lake. This home offers a lot of potential for a buyer with carpentry skills! BTV all info.See attachment for PAS requirements and WFHM offer submittal...
4542 Reka Drive
Anchorage, AK 99508
4542 Reka Drive Anchorage, AK 99508
1 of 10
$79,900
Subdivision: The Village
BEDS
3
BATHS
1
SQ.FT.
882
BUILT
1974
ON SITE
17Days
MLS
17-19436
Seller will not complete any repairs to the subject property, either lender or buyer requested. The property is sold in as is condition
11278 N Blue Sky Drive
Willow, AK 99688
11278 N Blue Sky Drive Willow, AK 99688
1 of 12
$83,000
Subdivision: Lakes O the Su
BEDS
1
BATHS
1
SQ.FT.
800
BUILT
1983
ON SITE
20Days
MLS
17-19294
Property is sold as is where is. BTV all info. Property has 1 bedroom, office, loft access thru staircase. Great deck to soak up the sun. 2 car carport and lots of room for your toys!
104 Lawton Drive
Kenai, AK 99611
104 Lawton Drive Kenai, AK 99611
1 of 25
$85,000
Subdivision: Lawton Amended
BEDS
2
BATHS
1
SQ.FT.
902
BUILT
1955
ON SITE
25Days
MLS
17-19216
This AS-IS fixer upper has a convenient location near schools and shopping. Upper level has two bedrooms and 1 bath and the unfinished basement has 2 rooms in addition to main area. Bathroom has...
12647 W Leprechaun Drive
Houston, AK 99694
12647 W Leprechaun Drive Houston, AK 99694
1 of 11
$93,900 ( $13,000 )
Subdivision: Enchanted Forest
BEDS
2
BATHS
1
SQ.FT.
768
BUILT
2003
ON SITE
45Days
MLS
17-18441
Open concept kitchen/living/dining with vaulted ceilings. Metal roof. This starter home is waiting for you!
51348 Barksdale Drive
Nikiski/North Kenai, AK 99635
51348 Barksdale Drive Nikiski/North Kenai, AK 99635
1 of 13
$94,900 ( $35,000 )
Subdivision: Lake Village
BEDS
3
BATHS
2
SQ.FT.
3,038
BUILT
1978
ON SITE
62Days
MLS
17-9647
Large 3 bedroom home on a huge lot with plenty of room for toys. Lots of window and a partially unfinished basement. Home needs a little TLC.
111 Birch Street
Kenai, AK 99611
111 Birch Street Kenai, AK 99611
 
$96,000
Subdivision: J & S LL-2
BEDS
3
BATHS
1
SQ.FT.
1,020
BUILT
1976
ON SITE
24Days
MLS
17-19239
HERE IS A FIXER UPPER. HEAT IS ON READY FOR YOU TO UPDATE. IN HOUSE FINANCING WITH 6% DOWN BALANCE AT 4.5 INTEREST FOR 15 YEARSIN HOUSE FINANCING WITH 6% DOWN AND INTEREST 4.5% FOR 15 YEARS FOR OWNER...
35217 Greenwood Court
Sterling, AK 99672
35217 Greenwood Court Sterling, AK 99672
1 of 32
$100,000
Subdivision: Barker
BEDS
3
BATHS
1
SQ.FT.
2,880
BUILT
1985
ON SITE
34Days
MLS
17-18824
Two story log home with full basement at the end of a cul-de-sac. Just over an acre of level land. See attachment for PAS requirements and WFHM offer submittal information in MLS document section....
The listing content relating to real estate for sale on this website comes in part from the IDX Program of Alaska Multiple Listing Service, Inc. (AK MLS). Real estate listings held by brokerage firms other than Madden Real Estate, LLC are marked with either the listing brokerage's logo or the AK MLS logo and information about them includes the name of the listing brokerage. All information is deemed reliable but is not guaranteed and should be independently verified for accuracy.

Listing information was last updated on: 12/16/2017

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