For those unfamiliar, Alaska distress properties are simply those that are in foreclosure. Foreclosure is simply a means for a lender to receive an amount owed on a defaulted loan either by selling the property or by repossession of the property. This process is begun when an owner has fallen behind on his mortgage payments and the lender then files a public default notice.
Bidding on Alaska distress properties can seem overwhelming and even intimidating, especially if it is your first time. Standing on the courthouse steps and bidding on Alaska distress properties you are interested in can also be very exciting!
However, there are alternatives to this type of bidding. There are realtors who run internet based ‘live’ auctions. Here, typically, you will be able to bid on Alaska distress properties directly with the lender or holder of the Alaska distress properties. This also makes the bidding process much quicker and much easier!
If you have never ‘dabbled’ in real estate investing or Alaska distress properties, but are considering it, you need to realize that it can sometimes be difficult. However, once you have made your first purchase and made a profit, you will find it gets easier and better.
Although the profits from Alaska distress properties which you acquire can be huge, this is not a good investment choice for a beginner. However, it can be done and done right! Just remember that there is much to know in order to avoid any pitfalls that might occur.
Typically, there are three ways to buy a foreclosed property and these depend on the stage of the foreclosure process. These are: pre-foreclosures, auctions, and buying from a lender after the sale.
If you are able to purchase a property from an owner before it goes into foreclosure, while still at the delinquent stage, you can probably get a pretty good deal. This is a pre-foreclosure. If, however, the foreclosed property goes up for auction and the highest bidder wins or if no one bids—the lender gets the property.
When you buy after the lender has gained possession, it is called an REO or real estate owned property; better known as a repo or repossession. Typically, a lender will list the property as ‘lender owned’. This is the least risky way to buy any foreclosure property. Buying Alaska distress properties from a lender usually offer some form of legal recourse should the property have more problems than were foreseen. However, in purchasing Alaska distress properties after the lender has gained possession can also mean less profit for you in the end.
