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

38 Properties Found. Showing 1-12
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410 Flower Street
Anchorage, AK 99508
410 Flower Street Anchorage, AK 99508
1 of 22
$50,000
Subdivision: Vanover
BEDS
2
BATHS
1
SQ.FT.
1,496
BUILT
1966
ON SITE
3Days
MLS
18-8459
Fire damaged property being sold for cash and as-is. Zoned R2M. Alley access. Code Abatement Inspection is required prior to demo or rehab. Fire Department incident report dated 4/13/17 is available...
Mi 11 Edgerton Highway
Chitina, AK 99586
Mi 11 Edgerton Highway Chitina, AK 99586
1 of 13
$55,000 ( $7,500 )
Subdivision: Kings Plat
BEDS
3
BATHS
3
SQ.FT.
1,500
BUILT
1979
ON SITE
320Days
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.
679 Red Cove Road
Sand Point, AK 99661
679 Red Cove Road Sand Point, AK 99661
1 of 14
$55,000 ( $135,000 )
Subdivision: Meadow
BEDS
3
BATHS
2
SQ.FT.
2,816
BUILT
1987
ON SITE
197Days
MLS
17-18767
Great family home, on a large lot with lots of room for toys. Great views! Sold as-is
23690 Nikolai Street
Ninilchik, AK 99556
23690 Nikolai Street Ninilchik, AK 99556
1 of 5
$62,500 ( $10,400 )
Subdivision: Happy Valley Vista
BEDS
3
BATHS
2
SQ.FT.
1,714
BUILT
1979
ON SITE
9Days
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.
48478 House Court
Nikiski/North Kenai, AK 99611
48478 House Court Nikiski/North Kenai, AK 99611
1 of 20
$69,520 ( $9,480 )
Subdivision: Fred House Homestead LC2
BEDS
2
BATHS
1
SQ.FT.
696
BUILT
2002
ON SITE
46Days
MLS
18-5465
PRICE REDUCED!!! Fix it up and make it shine! HUD Home sold as-is. Tax authority states 864 square foot. 2 story compact design on 2.19 acres. Possible drug activity. This property is being sold...
251 McCarrey Street #V-21C
Anchorage, AK 99508
251 McCarrey Street #V-21C Anchorage, AK 99508
1 of 28
$75,600
Subdivision: Wonder Park Contempo 1
BEDS
2
BATHS
1
SQ.FT.
810
BUILT
1981
ON SITE
2Days
MLS
18-5324
HUD Condo - Ground Floor Unit - Apartment Style - 2 Bedrooms, 1 Bathroom, Fireplace, and Laundry Area. Clean and move-in ready! Very convenient location to Shopping Centers (e.g, Costco),...
36052 N North Fork Road
Anchor Point, AK 99556
36052 N North Fork Road Anchor Point, AK 99556
1 of 19
$80,000
Subdivision: Kachemak Bay Ranchos Replat Of &
BEDS
1
BATHS
1
SQ.FT.
1,024
BUILT
1980
ON SITE
142Days
MLS
17-14826
IT IS WHAT IT IS, FEDERAL BANKRUPTCY PROPERTY BEING SOLD AS IS. BRING ALL OFFERS. OVER 19 ACRES OF ALASKAN FREEDOM AND SPACE. PROPERTY IS UNIQUE AND THE PROPERTY IS VERY STEEP AND SLOPING BUT HAS...
6038 E 12th Avenue #A4
Anchorage, AK 99504
6038 E 12th Avenue #A4 Anchorage, AK 99504
1 of 10
$89,900 ( $10,000 )
Subdivision: Timber Manor
BEDS
2
BATHS
1
SQ.FT.
750
BUILT
1977
ON SITE
87Days
MLS
18-2880
Nice top floor apartment style unit with an open layout. This condo features a corner fireplace, deck off the dining area, nice size bedrooms. Sold as -is
716 N Bunn Street
Anchorage, AK 99508
716 N Bunn Street Anchorage, AK 99508
1 of 14
$92,900 ( $22,000 )
Subdivision: NELS KLEVEN BLK 13 LT 1 N3 E2
BEDS
2
BATHS
1
SQ.FT.
1,126
BUILT
1954
ON SITE
78Days
MLS
18-3486
Legacy log cabin, 2 bedroom, 1 bath ranch home with remodeled interior, long, secure metal building on rear of lot with alley access. This is a Homepath property First Time Buyers, complete the...
6440 W Admiralty Circle
Big Lake, AK 99623
6440 W Admiralty Circle Big Lake, AK 99623
1 of 22
$109,000
Subdivision: Birch Harbor Estates
BEDS
1
BATHS
1
SQ.FT.
608
BUILT
1983
ON SITE
31Days
MLS
18-6431
Cute 1 bedroom cabin/chalet on large lot (.94 acre) that offers plenty of room for your Alaskan toys. Close to Goose Bay Elementary School. Large 3 car detached garage. There is evidence of water...
3204 Montclaire Court #15B
Anchorage, AK 99503
3204 Montclaire Court #15B Anchorage, AK 99503
1 of 16
$125,900 ( $10,000 )
Subdivision: Mt Vernon Commons
BEDS
3
BATHS
2
SQ.FT.
1,358
BUILT
1976
ON SITE
5Days
MLS
18-746
3 bedroom, 1.5 bath, townhouse style condo that is close to all conveniences. Unit has been converted to gas heat. Huge shed stays! Windows and roof have been replaced, kitchen and downstairs bath...
50290 Sterling Highway
Soldotna, AK 99669
50290 Sterling Highway Soldotna, AK 99669
1 of 42
$127,500 ( $30,000 )
Subdivision: Char
BEDS
3
BATHS
1
SQ.FT.
1,637
BUILT
1977
ON SITE
96Days
MLS
18-2390
Nice 3 bedroom 1 bath home 10 minutes from Soldotna. Property sold as-is.
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: 5/25/2018

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