If we are looking for much cheaper properties, may advice we get is to invest or buy from foreclosed properties because they are sold lower compare to their actual market value.
Every month, there are many banks and financial institutions selling their foreclosed properties, others are in the form of public auction or bidding.
Foreclosed properties are considered non-performing assets that is why they are sold in much cheaper value through discounted sales.
If you are planning to buy a foreclosed properties, here are Top 10 tips for you.
1. Where to Look for Foreclosed Properties?
Banks, lending institution, government financial institution website. This is the first thing you should do.
Banks. For example, the Landbank of the Philippines is releasing a list of their foreclosed properties monthly. (Other Banks, EastWest, Metrobank, BDO and many others has hundreds or even thousands of foreclosed properties.
Lending Institution, government financial institution like SSS, Pag-IBIG Fund, and National Housing Authority.
The above mention entities have accredited brokers and brokerage that help them market and sell their foreclosed assets.
2. Work with a Bank or Accredited Broker
Working with a bank or its accredited broker or brokerage will help you settle those things and it reduces the risk of ending up with a problematic property.
3. Be Ready Financially
Before your housing loan gets approved, the bank or the financial institution will assess first your capacity to pay. And once you are pre-qualified, you will be more attractive from other sellers.
Because of this, you will have more negotiating leverage compared to other buyers.
4. Participates in Auctions or Public Bidding
Property auctions, usually organized by banks or real estate brokerages, are a great way to discover foreclosed properties not normally listed on property websites. Attending auctions also allows you to talk to an agent face-to-face to thoroughly discuss your purchase, seek their advice, and practically walk you through the buying process.
5. Have Some Cash to Spare
Remember, buyers with down payment money ready on spot normally win the bidding wars, and may even be offered the hefty discount by the seller.
6. Never buy without inspecting a property
7. Consider the Location
If you are planning to re-seal foreclosed properties, location is a very big factor to the profitability of your property. Expect that the value of your property will increase if it is situated in a high-growth area or in a developing place.
It goes the same if you are planning to buy a property close to business center. The price is much higher compared to foreclosed properties from the countryside.
It goes the same if you are planning to buy a property close to business center. The price is much higher compared to foreclosed properties from the countryside.
8. Compare and deliberate Your Offer
9. Know Your Fees and Taxes
10. Be Patient
So the status of your bidding may take a week if you are lucky but there are some that take a month to get an answer from the bank. Your broker will inform you of any development as soonest as he can.
Remember to submit all the requirements needed to avoid rejection, but if it happens, do not be discouraged since there are many foreclosed properties nationwide.
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