Lamudi features just about every type and price of foreclosed properties for sale in the Philippines, from a 244 square meter foreclosed farm lot in Bulacan listed for as low as Php26,000 to a 2.44-hectare lot in Tagatay good for either residential, commercial, or industrial use and priced at around Php6.1 billion.
Comprising over 15 percent of the said listings, the area with the most foreclosed properties is the province of Cavite, followed by the provinces of Rizal (ten percent) and Laguna (nine percent).
As of January 2018, Lamudi Philippines has over 16,600 listings of foreclosed properties.
Commonly sold “as is, where is’, foreclosures are often sold at lower-than-average prices, not necessarily because the property is not good, but mostly because it may need a little bit of work which the buyer will eventually have to spend on.
Foreclosed properties are commonly acquired by banks in the event that the prior owner has failed to pay the mortgage on the property. The financial institution then in turn sells the “non-performing assets” at lower-than-average prices to earn profit as soon as possible and avoid the cost of maintenance and repairs.
With that, Filipino buyers are sometimes apprehensive of buying foreclosed properties, be it because of the guilt associated with the misplaced feeling of taking advantage of the prior owner’s financial misfortunes, or because “unbelievably affordable” properties tend to have a number of issues.
On the contrary, when looked into diligently, foreclosed properties can prove to be a savvy investment for buyers looking for an affordable place to live in, run a business or turn over for a profit. These properties are available in just about every part of the Philippines. While not as much are available in Metro Manila, there are several foreclosed property listings in places like Cavite, Rizal, and Laguna, and still some in capital region areas like Caloocan and Las Pinas.
About all types can also be seen online. Some of the most affordable include 240-250 square meter vacant lots in Rizal costing as little as Php15,000, while costlier and larger include a 225 square meter home sitting on a 3.5 hectare lot and costing a little under Php1 billion.
Include Improvements and Repairs in Your Budget
With affordability comes likely need for repairs and improvement, because as mentioned, foreclosed properties are sold “as is, where is.” With that, it’s sometimes ideal to buy a foreclosed real estate that costs a little less than your available buying budget, to make sure there is some finances left for possible repairs and improvements you may have to undertake.
Do Your Research
When dealing with foreclosures, and real estate in general actually, it also important to do as much due diligence as possible on the property you are interested in buying. In line with foreclosures being “as is, where is” is the potential of a property have more issues than what was initially listed when the bank put the property on the market.
With that, meticulous inspection with the help of a trusted real estate professional is most recommended. Apart from checking a property’s physical features, it is also beneficial to look into its history, especially to be able to avoid the circumstances of how it went into foreclosure in the first place.
Only Buy from Banks and Accredited Brokers
To best avoid the risks associated with foreclosed properties is to only buy from known financial institutions and their accredited brokers. Clean titles and complete property histories are always available from the aforementioned sellers, and in the event a buyer needs to take on a property loan to complete the purchase, the selling may also have a programs available, although it must be remembered that this does not lead to a discounted property price or influences the loan terms.
Looking to buy from proven sellers also more or less ensures that you have a number of options to look into, and the right real estate professionals will also help you find the foreclosed property that best fits your budget, and has the least or no problems for you to contend with.
The Philippines has one of the fastest growing economies in Asia. The quality of real estate in the country is high, as well as the demand for it. This means that whatever one buys today is most likely to increase in value tomorrow. Therefore, buying any kind of property in the Philippines can be a lucrative investment.
From mass housing to luxury properties, there is always an option available for anyone. However, when one is still unable to afford properties at market price, an alternative is to go for a foreclosed property for sale. This is a house, apartment, or plot of land that has had a mortgage on it, but went unpaid for a certain length of time. The bank that issued the mortgage, thus takes possession of the property. They get sold at lower-than-average prices because banks consider them as “non performing assets”. Their goal is to sell them and earn profit as soon as possible.
Bank foreclosed properties for sale can be found everywhere, however there are not as many in the capital region as there are in other parts of the Philippines. Many can be found in Dasmariñas and General Trias in Cavite, Binangonan, Angono, and Antipolo in Rizal, and Calamba in Laguna. For those looking in the Visayas region, Bacolod City has a lot to offer, but for those who still prefer Metro Manila, Quezon City, Caloocan, and Las Piñas would have the most offers available.