Localization of machine type communication (MTC) devices is essential for various types of location-based applications. In this paper, we investigate a distributed localization problem in noisy networks, where an estimated position of blind MTC machines (BMs) is obtained by using noisy measurements of distance between BM and anchor machines (AMs). We allow positioned BMs also to work as anchors that are referred to as virtual AMs (VAMs) in this paper. VAMs usually have greater position errors than (original) AMs, and, if used as anchors, the error propagates through the whole network. However, VAMs are necessary, especially when many BMs are distributed in a large area with an insufficient number of AMs. To overcome the error propagation, we propose a greedy successive anchorization process (GSAP). A round of GSAP consists of consecutive two steps. In the first step, a greedy selection of anchors among AMs and VAMs is done by which GSAP considers only those three anchors that possibly pertain to the localization accuracy. In the second step, each BM that can select three anchors in its neighbor determines its location with a proposed distributed localization algorithm. Iterative rounds of GSAP terminate when every BM in the network finds its location. To examine the performance of GSAP, a root mean square error (RMSE) metric is used and the corresponding Cramér–Rao lower bound (CRLB) is provided. By numerical investigation, RMSE performance of GSAP is shown to be better than existing localization methods with and without an anchor selection method and mostly close to the CRLB.