Big Foreclosures In Wasilla

Two large projects are hitting the foreclosure auction block in the next couple weeks. 

They are the Willow Heights condos and the Gemstone Estates Subdivision.  I’m not sure how the condos are going to be sold, but the subdivision lots are going to be offered individually.

These were both ill advised projects from the start.  Condos were never a great idea in the Mat-Su Valley.  Most people move out to the valley to find more room.  They don’t dream of moving to the Mat-Su Valley to live in a condo.  If you are on a lake or have some other fantastic location, you can sell condos…but without some extra perk…good luck!

The subdivision didn’t sell because the prices were too high.  I think it is likely the initial cost of the land drove up the cost of the project so that the developer was trying to sell 1/2 acre lots for $48,000.  That was a no-go because you could buy nice one acre lots all over the valley for less. Here are some great lots, most of them are under $48,000. 

From what I can gather, the lots will be offered at the sale next Tuesday in Anchorage.  They will be offered individually for a minimum bid of $35,000 each.  If they don’t sell individually they may be offered in bulk.  Of course the bank can change the terms on a whim, so make sure you know the terms if you are going to bid.

At $35,000, I can see some builders and perhaps individual buyers picking up some of these lots.  Assuming that the community water system is operational, this is a good location for some spec houses. 

Gemstone is located just off of Seldon Road near Teeland Middle School and next to Cornerstone Christian School.  It’s a great central location for a development…at the right price.

The Anchorage Daily News had a story on these properties today. I have some differences with the story in the way the average price reductions are presented, but I agree completely with the quote from Jerry Moses…”don’t do stupid things”.  You can read Zaz Hollander’s piece here.

There is some information on National Bank of Anchorage’s website here.