6 Tips Before You Buy: The Foreclosure Process in the Philippines
Acquiring foreclosed properties can be a great way to purchase houses and lots on a deal. But before you dive headfirst into making this type of acquisition, it’s important that you go through our tips, so you can better navigate the process of foreclosure in the Philippines.
This article has our best tips to help you prepare to purchase foreclosed properties.
1. Look for Properties on Reputable Websites
The first thing you need to know about how to buy foreclosed properties in the Philippines is where to look for these listings.
When you’re looking for foreclosed property listings, we recommend only going through the offerings of established banks and government agencies. These institutions will have their property listings printed out and ready to take at their physical offices, but you can also check their websites.
It’s best if you only transact with these companies because they do their due diligence. This means you’ll get a full picture of the legal and fiscal responsibilities that come with the acquisition of the property.
2. Ask for Professional Help
Purchasing a foreclosed property is a huge investment and you want to make sure that you’re making informed decisions before signing your name on the dotted line. This is why we recommend seeking assistance from professionals who know how foreclosure works.
Another benefit you can reap from having an accredited broker working with you is that they can liaise with the bank or government institution for you. These licensed brokers will verify the property’s documents on your behalf, making foreclosed property purchasing a breeze.
3. Check the Property First
Foreclosed properties are often sold on an “as-is, where-is” basis, meaning what you see is what you get. This is why we highly recommend that you set aside the time to conduct a site visit.
During your site visit, make sure to carefully inspect the property and take notes of what you think should be renovated or upgraded. If possible, you should ask the property owner, if they're present, if you can take videos of the property to review with a professional for an estimate on the work needed
4. Consider the Location
When you’re looking to purchase a foreclosed property, make sure to consider the location. If you want your property’s value to go up, you want to make sure that it’s located in a developing area. Take note of how close the property is to essential businesses such as hospitals, groceries, and schools.
Another thing to consider is if the property is near any fault lines or if it’s been hit by natural disasters. That way you can include home improvements that can mitigate the effects of natural disasters, should you choose to proceed with this foreclosed property purchase.
5. Get Financing Ready
Before you place a bid on any foreclosed properties, make sure that you have your financing ready. Having your finances in order before the bid will give you an edge with sellers and banks. This is because these financial institutions know that you have the funds and credit to push through with the transaction.
Additionally, you can use your pre-approved housing loans as leverage for negotiations with the seller.
6. Think About Other Expenses
While you may be acquiring an asset at a lower price, there are a lot of other expenses to think about when purchasing a foreclosed property. Aside from the necessary house renovations and improvements, you’ll also need to consider any fees and taxes that need to be settled. As the property buyer, you’ll need to shoulder these financial burdens.
For example, if the previous owner did not pay for the property’s association dues and property taxes, you’ll have to pay for these fees. So, make sure to factor in these expenses when you’re purchasing foreclosed property.
Don't Purchase Foreclosed Property Blind
Now that you’ve done your research and you know some of our best tips and tricks when purchasing foreclosed property, it’s time for you to put your knowledge to use. There are dozens of trusted institutions that have foreclosed properties that are ready for auction, you just need to find one to kick off your journey.
If you’re not sure where to start, you can visit RCBC’s list of foreclosed properties. Partnering with RCBC, a trusted financial institution, guarantees that you’ll find your next property and purchase it without a hitch.
