What You Should Know Before Inquiring On Philippines Foreclosed Property

Posted in Guides on November 24th, 2009 by admin | No comments
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foreclosed property philippinesForeclosures occur when the owner’s financial situation changes and he/she can no longer keep up her mortgage payments. Dealing in foreclosures is a specialty in itself. Those who understand the process do very well because, by definition, they are always buying wholesale. You have to spend some time learning the process before you can be good at it.

The lenders or the bank who owns the property through a foreclosure have a problem. Why? Because lenders are in the banking business and the banking regulators don’t like it when the lender forecloses. It is seen as evidence that the bank does not observe good lending practices because if it did the property would never have gone into foreclosure.

Secondly, Lenders don’t like to take real estate in their foreclosure because they must carry the real estate “ free and clear” which means the they have to tie up a lot of cash , when they can lend out the money instead at a higher rate which is how they make most of their money.

Thirdly, Banks don’t like to take real estate because it is considered a depreciating asset and appears as expense on its financial statements. Now you understand why banks would want to sell the foreclosed properties as soon as possible.

The simplest way to see if foreclosure buying is right for you is to go to some of the foreclosures in your area and just watch. You will quickly learn the process and the players and you can make a much better decision after you see what happens. You may find that you don’t like the process, but that you can develop a good relationship with someone who does. He may be willing to flip some of his properties to you for a small, but quick profit.

Now on the conditions of the foreclosed properties, many of these properties have damages…such as leaking roofs, clogged toilet bowl, about to fall roof ceiling, dilapidated wall coverings, etc. due to neglects of the former owners. These properties are sold at bargain prices. Experienced foreclosed property buyers will have a good assessment of the damages and costs involved to put it back into livable condition, sell it at a profit or rent it out.

If you are interested to purchase BDO foreclosed property, you will have to submit an offer or a bid for the particular property. Depending on your levels of interest, you may submit an offer or a bid which may be higher or lower than or equal the indicative price. This you will have to do immediately after receiving information that the property is still available. BDO Management will deliberate on several bids or offers of different buyers and the highest bid or offer will win the bidding.

Source:  How To Buy & Sell Real Estate For Financial Freedom By James Dicks and JW Dicks

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