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

66 Properties Found. Showing 1-12
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2435 Veltoby Lane
Delta Junction, AK 99737
2435 Veltoby Lane Delta Junction, AK 99737
1 of 16
$30,000
Subdivision: Sweeneyview Ridge
BEDS
2
BATHS
1
SQ.FT.
1,300
BUILT
1975
ON SITE
9Days
MLS
17-13954
Almost 7 beautiful acres just outside of Delta Junction with a 2 story log house. Attached garage, 2 bedrooms with 3 possible, vaulted ceiling,huge utility room, and tons of privacy. Cash or...
100 Kenai Street
Whittier, AK 99693
100 Kenai Street Whittier, AK 99693
1 of 12
$39,900
Subdivision: Begich Towers
BEDS
2
BATHS
1
SQ.FT.
749
BUILT
1958
ON SITE
8Days
MLS
17-13999
2 bedroom condo unit in the Begich Towers on the 3rd floor. Seller is Credit Union 1. Please present all offers.
20105 W Michelle Drive
Willow, AK 99688
20105 W Michelle Drive Willow, AK 99688
1 of 22
$45,000 ( $12,500 )
Subdivision: Deneki Meadows
BEDS
3
BATHS
2
SQ.FT.
1,344
BUILT
1977
ON SITE
54Days
MLS
17-1138
Great for a weekend get-a-way or year round living! Enjoy all that Hatcher's Pass has to offer. Home offers a unique floor plan with a large front deck for your summer enjoyment. T & G ceiling in...
22530 Christopher Circle
Ninilchik, AK 99639
22530 Christopher Circle Ninilchik, AK 99639
1 of 37
$59,900
Subdivision: Big Valley
BEDS
3
BATHS
2
SQ.FT.
1,728
BUILT
1986
ON SITE
34Days
MLS
16-12474
Private location in the country with EZ access to town. Fishing cabin with covered front porch-woodstove heat & sleeping areas upstairs. Needs proper foundation, plumbing & plumbing fixtures replaced...
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
41Days
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.
4650 Reka Drive
Anchorage, AK 99508
4650 Reka Drive Anchorage, AK 99508
1 of 26
$64,400 ( $5,600 )
Subdivision: Anchorage Manorhouse
BEDS
2
BATHS
2
SQ.FT.
998
BUILT
1978
ON SITE
23Days
MLS
17-6721
Price Reduced! **HUD Condo** Spacious Condo with 2BR/1.5BA. Lots of pantry storage. Wood Stove. Pet Friendly Neighborhood. Rec Center and Sauna available for unit owners. Don't miss out on this...
102 Antoinette Avenue
Fairbanks, AK 99701
102 Antoinette Avenue Fairbanks, AK 99701
1 of 10
$68,500 ( $7,500 )
Subdivision: Lemeta
BEDS
3
BATHS
1
SQ.FT.
1,200
BUILT
1962
ON SITE
25Days
MLS
17-3967
3 bedroom ranch home on a corner lot in Lemeta. There is also a one car garage and a large utility room/laundry and a shed. This is a greatlocation close to schools and shopping, the University and...
6038 E 12th Avenue
Anchorage, AK 99504
6038 E 12th Avenue Anchorage, AK 99504
1 of 10
$79,900 ( $10,000 )
Subdivision: Timber Manor
BEDS
2
BATHS
1
SQ.FT.
750
BUILT
1977
ON SITE
59Days
MLS
17-10271
Nice top floor apartment style unit with an open layout. This condo features a corner fireplace, deck off the dining area, nice size bedrooms, and covered parking.
2403 Second Avenue
Ketchikan, AK 99901
2403 Second Avenue Ketchikan, AK 99901
1 of 60
$79,900 ( $40,000 )
Subdivision: Heath Addn U.S. Survey 1229
BEDS
5
BATHS
3
SQ.FT.
2,212
BUILT
1940
ON SITE
55Days
MLS
17-10383
Single family home with apartment addition. Beautiful bay views from the main living areas. See attachment for PAS requirements and WFHM offer submittal information in MLS document section. Please...
52531 Bastien Drive
Nikiski/North Kenai, AK 99635
52531 Bastien Drive Nikiski/North Kenai, AK 99635
1 of 16
$85,000
Subdivision: King
BEDS
3
BATHS
2
SQ.FT.
1,944
BUILT
1984
ON SITE
6Days
MLS
17-14067
What a nice lot! Bring your tools and make this house your dream home. House is placed on 10 day hold- being sold as-is Could do AHFC rehab loan -BTV
2842 Fales Road
Delta Junction, AK 99737
2842 Fales Road Delta Junction, AK 99737
1 of 7
$89,900 ( $35,000 )
Subdivision: Pennington
BEDS
3
BATHS
2
SQ.FT.
2,000
BUILT
1984
ON SITE
45Days
MLS
17-4161
Log Cabin style home in need of some TLC.
17514 E Castle Rock Lane
Sutton, AK 99674
17514 E Castle Rock Lane Sutton, AK 99674
1 of 13
$99,000
Subdivision: Seventeen Mile
BEDS
2
BATHS
1
SQ.FT.
884
BUILT
2009
ON SITE
50Days
MLS
17-10998
3D Immersive Virtual Tour available under the photo tab in MLS. Year round living or tucked away cabin in the woods that is not only affordable but available with owner financing. The home is at the...
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: 8/19/2017

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