by Dan Wolf
on Monday, November 24th, 2014 at 10:33am.
Buying a foreclosed home is an ideal way of investing in affordable property. Foreclosures are up considerably in Anchorage, which is one of the major housing markets in the state. If you’re considering buying a foreclosed home, here's what you need to know regarding Anchorage foreclosures.
How a Foreclosure Works
The process starts when a homeowner or borrower fails to make loan payments with the lender having to file a public notice of default. If the borrower still can’t make monthly loan payments, the lender can repossess the property, reselling it to recover the loan cost.
In Alaska, foreclosure sales are done at public auctions at the front doors of local courthouses. The homes are sold to the highest bidder, which may include the lender.
Advantages of Buying a Foreclosed Home
One of the main benefits of buying a foreclosed home is that financial institutions, such as banks taking over foreclosures, are eager to sell foreclosed properties as soon as possible, so they price them lower than market value. This is to entice more buyers to make offers. There are other advantages:
• Sellers are more willing to make needed repairs. • The sellers are also usually more agreeable to provide concessions such as major closing costs. • You can move into a better neighborhood that you probably couldn't afford if the house wasn't under foreclosure. • You can make money. When you buy a foreclosed home at a cheap price, your home can go up in value over time. Then, when you’re ready to sell your home, you have a better chance of making a considerable profit that can be used to buy a new home that’s higher priced. • Down payments are lower. As foreclosures are cheaper, your down payment is smaller. This makes it easier to buy a home if you’re a first-time home buyer.
Anchorage foreclosures have both pros as well as risks. Therefore, you need to do your homework before buying.
• Be familiar with foreclosure laws for Alaska—In other words, get professional legal advice from a real estate lawyer well versed in state foreclosure laws. • Narrow your search—Rather than looking for a foreclosed home in a wide range of neighborhoods, only focus on certain areas. It’s easy to become overwhelmed if your home search is too broad. • Be aware of any liens and other information on any property you’re considering. • When buying at an auction, be sure to thoroughly research the property before the auction occurs. To determine the best bid price, weigh the pros and cons of the property.
Wolf Real Estate Professionals can help you find a foreclosed home as well as help you with any type of real estate need. Please contact us at 907-248-9653 or visit us online at www.anchoragehomesearch.com