There are some great deals on foreclosed homes in Anchorage, AK right now. You can choose from REO (real estate owned) properties, pre-foreclosures, government foreclosures and homes at public property auctions. Inventory includes homes in all price ranges and neighborhoods including luxury and vacation properties. Buyers/investors are finding investment opportunities on a daily basis so you should take advantage now while the prices are still affordable.
Expansion of Government HAMP Program to Include Short Sales
The expansion of the government’s Home Affordable Mortgage Program (HAMP) to provide incentives to lenders/loan services to approve short sales and deeds in lieu of foreclosure through the HAFA program will now give buyers/investors more opportunity to purchase pre-foreclosure short sale properties quicker. The expanded program is designed to allow distressed homeowners avoid foreclosure and shorten the approval process on pre-foreclosures.
The HAFA Short Sale Agreement (SSA) requires that distressed homeowners find a buyer within 120 calendar days from the date of mailing of the SSA. Lenders will have the option to extend the deadline another 245 calendar days for a total of 12 months. The SSA also requires that the transactions be arms length. The new buyer/investor must hold the property for at least 90 days after closing. So for those of you who are interested in buying Anchorage pre-foreclosed homes and are willing to hold the property for 90 days before reselling it, this is a terrific time to do so. Cash buyers have an edge in this regard so you should take advantage of this opportunity.
Finding Anchorage Foreclosed Houses
To find foreclosure listings in the local multiple listing service, you should work with a Realtor in the area. When you purchase REO’s or government foreclosures, you must do so by making an offer through a Realtor. HUD foreclosed homes are advertised on the government’s HUD website and you can find Fannie Mae foreclosed homes on their website. Foreclosure auctions are published in the local newspaper in the county where the properties are located, or you can check the local courthouse for a list of auctions. Also check the local newspaper and the Internet for property auctions.
Advantage of Buying Anchorage Foreclosed Homes:
- Homes are substantially discounted.
- Right now inventory include homes in all price ranges and neighborhoods including luxury properties.
- You know you are making a good investment because you are purchasing property with a built in equity.
Disadvantages of Buying Anchorage Foreclosed Homes:
Properties are sold in an “as is” condition.
- Some need major repairs because they have been stripped of kitchen cabinets, countertops, appliances, doors, hardware, lighting fixtures and other items by their former angry homeowners. Allow for repairs when you make your offer.
- Foreclosed homes purchased at foreclosure auctions cannot be insured by title insurance.
- You may be responsible for evicting former owners or renters on homes purchased at foreclosure auctions.
If you are a first time home buyer, you may want to stick with Anchorage bank owned (REO) properties or short sales, as they are less risky investments than buying foreclosed homes at property auctions. There are plenty of opportunities and interest rates are low, so now is a great time to buy.