Help in buying foreclosed properties

[cloud7]

guys, help naman. how do you actually do this? the price posted by the banks are so much lower than what real estate companies offer. are there any "hidden" costs that go with this cheaper price? thanks.

[KuyaDanny]

Good question.

The reason the prices are low is that banks typically do not lend the full value of the property, and when they sell foreclosed property, their primary objective is to get repaid ASAP. If it means selling at "less than market", they are willing to consider it.

You might even get away with paying a lower price than what is published. This could happen if the bank is in a hurry to dispose and there are few interested buyers (or maybe only one). It doesn't hurt to ask.

[KuyaDanny]

Some "hidden" costs which might hit you:

1) Additional legal fees and registration expenses in getting all the encumbrances removed from the titles;

2) Foreclosed properties tend also to be unused/abandoned. There is a greater than average chance that the property has been neglected, in need of repair, or occupied by unauthorized persons (aka squatters). You might need to spend money to eject the occupants and bring the property back into shape. If the bank has been careful enough to get a guard to watch the place, they might ask you to reimburse them the guard's costs, although this should really be part of the price already.

[mac_bolan00]

aside from getting the land cheap (they lost loanable assets not exceeding 60% of the property value), they're selling it even cheaper. reason: the new SPAV bill will allow them to sell even at a loss, meaning less than the loanable amount they gave up, as long as they can apply the loss against their annual BSP-prescribed loss provisions.

[Marvel]

My tip, always check the condition, location and request for a title search to know if there are any liens against this property. :)

[Marvel]

Cloud7, you might want to consider checking out the Tax Assessors office for properties to be auction out because the property owners owe too much property or assessment tax on their property. This is one way of getting good deals too. :)

[velocity000]

Originally posted by KuyaDanny
Good question.

The reason the prices are low is that banks typically do not lend the full value of the property, and when they sell foreclosed property, their primary objective is to get repaid ASAP. If it means selling at "less than market", they are willing to consider it.

You might even get away with paying a lower price than what is published. This could happen if the bank is in a hurry to dispose and there are few interested buyers (or maybe only one). It doesn't hurt to ask.


Supposed I can get the foreclosed property below market, can the bank finance say 70% of the agreed price?

[KuyaDanny]

Assuming you are creditworthy by their standards, yes.

[velocity000]

Can one go to the city's tax assessors office and scout for properties with years of tax deficiency?

[KuyaDanny]

Yes. Normally the assessor will put them up for auction (public sale) with a floor price. There will be plenty of notice not only at the assessor's office, but also in newspapers.

[dac]

before you seriously entertain the idea of actually buying it..

get a real estate agent whos gonna do the checking at cityhall for the papers of the house/lot. is the real estate property tax properly paid yearly... is the land title in order (like is it in english? having it translated from Spanish will be additional expense.)
is the property properly fenced clearly measured.(maybe it says 200sqm but neighboring property are intruding into your own.. all that stuff)

get an attorney for legal consultation...
yep its gonna cost you but hey...better that everything is clear and proper before you sink in your savings.

Pay the right people the right amount to get the job done rather than spending money later on for every hidden cost, miscalulated or new hassles that might arise.

check the barangay captain of the foreclosed property and snoop around to get additional info about property

[cloud7]

thanks for the tips, guys. we're still in search for a good-buy. hope you can share more on this topic.

[SaintLuci]

To bankers here,

can you please email me at saintluci@yahoo.com if you are in a bank and have access to foreclosed properties? We are really interested in foreclosed properties..

[snop]

Originally posted by cloud7
thanks for the tips, guys. we're still in search for a good-buy. hope you can share more on this topic.

Kami rin. We get info from the bank lobbied. Or call your suki bank managers. The all have a list of foreclosed properties - all different kinds, even cars and tractors pa.

Keep in mind - sweat equity! You can increase your profit margins.

Good luck to us all.

:)

[KuyaDanny]

Originally posted by SaintLuci
To bankers here,

can you please email me at saintluci@yahoo.com if you are in a bank and have access to foreclosed properties? We are really interested in foreclosed properties..

You might want to start by visiting bank websites. I visited two this morning (UnionBank and UCPB), and both of them had real property for sale. Some backs call foreclosed property acquired assets.