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

55 Properties Found. Showing 1-12
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4200 Big Hill Road
Pedro Bay, AK 99647
4200 Big Hill Road Pedro Bay, AK 99647
1 of 25
$40,000 ( $63,400 )
Subdivision: Big Hill
BEDS
3
BATHS
2
SQ.FT.
1,781
BUILT
1993
ON SITE
479Days
MLS
14-17629
A rare find, property in Pedro Bay! This is a FNMA Homepath property. The home is located on 3 acres. There are additional outbuildings as well. Home offers beautiful views! This property is to...
22354 E Danielson Avenue
Sutton, AK 99674
22354 E Danielson Avenue Sutton, AK 99674
1 of 26
$64,800 ( $15,200 )
Subdivision: Alpine Heights
BEDS
1
BATHS
1
SQ.FT.
1,168
BUILT
1975
ON SITE
78Days
MLS
16-18300
Price Reduced! HUD Home. Sold "AS IS" by elec. bid only. Prop avail 02-15-17. Bids due by 11:59 PM Central Time daily until sold. FHA Case #111-131248. Insured w Escrow Rpr. Eligible for FHA 203K....
22530 Christopher Circle
Ninilchik, AK 99639
22530 Christopher Circle Ninilchik, AK 99639
1 of 28
$69,900 ( $5,000 )
Subdivision: Big Valley
BEDS
3
BATHS
2
SQ.FT.
1,728
BUILT
1986
ON SITE
10Days
MLS
16-12474
Private location in the country with EZ access to town. Covered front porch, and wood-stove heat. Needs some fixing to make it bank finance-able. May be eligible for renovation loan after purchase....
2200 Minerva Way
Anchorage, AK 99515
2200 Minerva Way Anchorage, AK 99515
1 of 15
$78,900
Subdivision: Southwood Condo
BEDS
1
BATHS
1
SQ.FT.
620
BUILT
1981
ON SITE
3Days
MLS
16-18655
Cute southside condo near top schools like Bayshore, Mears, and Dimond. Great location near shopping and easy access to Minnesota Pkwy. Security building. Sauna. Reserved parking. Jetted tub....
52238 Myron Avenue
Nikiski/North Kenai, AK 99611
52238 Myron Avenue Nikiski/North Kenai, AK 99611
1 of 24
$79,900 ( $10,000 )
Subdivision: Aurora Heights
BEDS
3
BATHS
2
SQ.FT.
1,232
BUILT
1974
ON SITE
32Days
MLS
16-18641
Traditional ranch home at the end of a cul-de-sac. Private yard with mature trees. See attachment for PAS requirements and WFHM offer submittal information in MLS document section. Please submit all...
8520 Boundary Avenue
Anchorage, AK 99504
8520 Boundary Avenue Anchorage, AK 99504
1 of 9
$84,900 ( $20,100 )
Subdivision: Alpine Village
BEDS
2
BATHS
1
SQ.FT.
829
BUILT
1976
ON SITE
51Days
MLS
17-110
Apartment style condo with new carpet and paint throughout, cozy fireplace, large balcony. Move in ready for owner occupy of income property.
20105 W Michelle Drive
Willow, AK 99688
20105 W Michelle Drive Willow, AK 99688
1 of 23
$85,000
Subdivision: Deneki Meadows
BEDS
3
BATHS
2
SQ.FT.
1,344
BUILT
1977
ON SITE
25Days
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...
22764 S Kula Road
Trapper Creek, AK 99683
22764 S Kula Road Trapper Creek, AK 99683
1 of 34
$87,500 ( $37,000 )
Subdivision: Kula
BEDS
3
BATHS
2
SQ.FT.
1,608
BUILT
1974
ON SITE
130Days
MLS
16-16355
This home offers a large lot for all the toys! Detached 2 car garage. Home is in need of work but offers a lot of potential! Nice fireplace in living room.
5330 Chalet Drive
Valdez, AK 99686
5330 Chalet Drive Valdez, AK 99686
 
$87,500 ( $13,500 )
Subdivision: Alpine Woods Estates Addn
BEDS
3
BATHS
2
SQ.FT.
2,880
BUILT
1976
ON SITE
121Days
MLS
16-16798
Handyman special, great investment opportunity for owner occupy or rental property. Home just needs a little TLC.
2009 W 46th Avenue
Anchorage, AK 99517
2009 W 46th Avenue Anchorage, AK 99517
 
$90,900
Subdivision: North Star BB
BEDS
3
BATHS
1
SQ.FT.
1,128
BUILT
1963
ON SITE
3Days
MLS
17-2267
Bank owned property being sold as-is where-is, in it's current condition. 3 bedroom, 1 bathroom ranch style home located in West Anchorage neighborhood. Minutes away from the airport and quick access...
13948 W Lotus Drive
Big Lake, AK 99652
13948 W Lotus Drive Big Lake, AK 99652
1 of 29
$102,258 ( $27,742 )
Subdivision: Big Lake Heights
BEDS
3
BATHS
2
SQ.FT.
1,440
BUILT
1984
ON SITE
119Days
MLS
16-16863
Price Reduced! HUD Home. Sold "AS IS" by elec. bid only. Prop avail 02-08-17. Bids due by 11:59 PM Central Time daily until sold. FHA Case #111-135095. Insured w Escrow Rpr. Eligible for FHA 203K....
804 Cottonwood Drive
Valdez, AK 99686
804 Cottonwood Drive Valdez, AK 99686
1 of 16
$103,100 ( $40,000 )
Subdivision: Black Gold
BEDS
5
BATHS
3
SQ.FT.
1,972
BUILT
1974
ON SITE
140Days
MLS
16-15979
Downtown Valdez home with lots of square footage, bedrooms and baths. Needs just about everything, so bring your sweat and build some equity. Sold absolutely as is without repair or warranty.
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: 2/23/2017

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