by Dan Wolf
on Thursday, October 10th, 2013 at 5:45am.
Buying Anchorage foreclosed homes require a lot of hard work, strategy and patience. Experts say the process of purchasing Anchorage foreclosed homes is different than purchasing a house that is in good condition.
Although many buyers believe flipping foreclosed homes is easy money, the reality is that Anchorage foreclosed homes can be a hassle and a difficult process. The number of cheap Anchorage foreclosed homes on the market is rising however the buyer may face a long list of problems and repairs.
Anchorage foreclosed homes are homes that the bank took over in an effort to recover the amount outstanding on the mortgage. Once the homeowner has defaulted and demonstrated he cannot afford to pay the mortgage, the bank will repossess the property and the lender will file a "Notice of Default." If the homeowner is still unable to pay the arrears in a certain timeframe, a public auction notice will be issued for the sale of the home.
3 Ways to Buy Anchorage Foreclosed Homes
Purchasing Anchorage foreclosed homes can be a bit intimidating but it will be all worth it when you find your dream home. Here are 3 ways to buy your dream Anchorage foreclosed homes.
#1. Short Sale
Anchorage foreclosed homes can be listed as a short sale. Short sale homes are listed on the market based on an agreement that had been made between the homeowner and the bank, allowing the homeowner to sell the property. Under this agreement, the buyer can make an offer on the home, which amounts to less than the amount owed. The bank will then either accept the offer or deny it. If the bank accepts the offer, the bank will waive the remaining debt on the property, thereby staving off a foreclosure. Although short sales may sound great, it can take awhile for a lender to agree on your offer.
Nowadays, a lot of investors purchase Anchorage foreclosed homes at a variety of auctions. However, if you're looking for your dream home, purchasing Anchorage foreclosed homes at auctions may not be the best idea. Buyers who purchase homes at auctions are not given the opportunity to access the home for damages and repairs prior to bidding on the home. It is also possible that the buyer may have to be the one who evicts the former owner, not the bank.
#3. Real Estate Owner (REO) Properties
REO properties are usually homes that failed to sell at auction and have reverted back to the lender. These properties can be heavily discounted depending on the market at the time of purchase. However, most REO properties are about 10% to 20% lower than market value. Although the discount may not sound like much, it can have a huge influence on determining if you receive a loan or not.
REO homes are less risky than buying short sale or through an auction. If you purchase a REO home, you are allowed to inspect the property inside and out like you would with any other type of house. However, the buyer is still liable for all repairs.
If you're looking for Anchorage foreclosed home, you'll find your dream home with patience. You may need to make several bids before you find the right home but when it comes to buying Anchorage foreclosed homes patience is keen.
Now that you know the 3 ways to purchase Anchorage foreclosed homes, let our team of knowledgeable professionals help you find your dream home. Contact us today to schedule an appointment with one of our professionals!