by Dan Wolf
on Thursday, September 5th, 2013 at 5:36am.
Alaska foreclosed homes can be a very tricky and but lucrative business, if done right.
With a huge climate and weather change from most of the rest of the United States, many areas seem almost unlivable and desolate. Finding a home for sale, foreclosed or full price, with profit potential can be a challenge.
As a result, Purchasing a foreclosed home in Alaska can have many different outcomes when the home is finally rented or sold again.
Here is a look at what goes on in the wonderful world of Alaska foreclosed homes.
Real Estate 101: Alaska Foreclosed Homes
What is a Foreclosed Home
In simple terms, Alaska foreclosed homes are created by a legal process in which a lender tries to make the money back from a borrower that stopped making payments. The law prohibits a delinquent mortgage borrower from having rights to the home they are not paying for. Defaulting on any mortgage payments may result in the repossession of the property. Then the creditor tries to sell the Alaska foreclosed homes to make up for the money they did not receive. Basically, the mortgage holder gives up the home in question to pay for what was not paid for in the first place.
One of the most common creditors are banks, who end up with Alaska foreclosed homes that they just want to sell to make their money back.
Most of Alaska foreclosed homes fall in the category of judicial foreclosures. This process starts with a lawsuit being filed against the individual not making payments. A decision is made after both parties explain their sides.
The good news about this type of foreclosure is that you can still get money from the bank after they sell the property to someone else. Any money above and beyond the point of covering what part of the loan is left is transferred to the pockets of the previous loan holder.
Foreclosures in the Alaska MLS
If you are in the market to pick up Alaska foreclosed homes for cheap, check out Alaska foreclosed homes listings in the area that you wish to live. Our website is a great place to start.
These are often put up for sale and can sell for far less than face value. Shopping for Alaska foreclosed homes is a great business opportunity if you have the resources available. You can buy a home for well under suggested retail value, resell it at a higher price, or rent it out so your investment will continue to pay for itself as time progresses.
You can find homes in the mls to renovate and update as well and turn them into much more expensive homes than what you paid.
However, it is important to remember that if someone has a mortgage and is unable to pay the monthly bill, they will also often leave the home in less than perfect condition.
Finding a Suitable Alaska Foreclosed Homes
Finding Alaska foreclosed homes can be a seamless process if you know where to look. Websites, like ours, promote the foreclosed home for anyone that wishes to look.
Hire us as your real estate agents and we can contact a bank directly and ask them if they have any suitable domiciles for you to pick up for cheap. Often, these listings are not advertised well and not many individuals show up. This gives an opportunity to those who are bidding to pay as little as possible and get the most out of their bids.
After You Buy... Keep your Properties Clean and Updated
Alaska's weather can deter individuals from wanting to rent out to new tenants. Often, if the power goes out, a home is threatened with the elements. A broken heater could quickly turn into an emergency if the individuals who live there are not prepared.
And, oftentimes, if you pick up a foreclosed home at a great price, you will likely live very far away which can cause headaches. You are not able to keep a check on your property very often and will have to pay a maintenance company to fix any issues that might arise.
These costs will come out of your pockets and face you with many hard choices. Alaska foreclosed homes on the market, when handled correctly, can make good amounts of income. Find a good location which gives you access to the home at all times. Keep a good contact with your renters and fix anything that breaks in the house.
There is nothing stopping you from investing your money and making your properties work for you. Just contact us today and we can make sure your money works for you.