In recent years, Filipinos have been looking to purchase properties on a much more reduced budget. With various factors that cause financial challenges for many, Filipinos are searching for better ways to fulfill their homeownership dreams without breaking the bank or placing their hard-earned savings on subpar living spaces. Property investments still remain one of the most important goals for many Filipinos, which is why available options for homeownership with reduced prices like foreclosed properties are a popular choice.
Foreclosed properties make up a large portion of available properties in the Philippine real estate market. These properties are a good way to not only secure a worthwhile investment in real estate but also an ideal way to get a property for end use. For those looking to purchase a home listed as foreclosed, there are many banks and financial institutions that offer a list of properties available for acquisition. In this article, we will discuss what a foreclosed property is, how a property becomes foreclosed, and how one can purchase a foreclosed property through banks or other financial institutions. We will also share important information on how one can avoid scams when acquiring foreclosed properties.
What Is a Foreclosed Property and How Does A Property Become Foreclosed?
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A foreclosed property is a real estate asset that has been claimed by a moneylender, or in most cases, a financial institution, due to the previous owner’s inability to pay the mortgage of the property or fulfill the payments or the terms that have been agreed upon in case of a loan. Once the property owner fails to pay their mortgage or loan payments, the moneylender can foreclose the property by taking the ownership rights of the previous owner.
How Do I Purchase a Foreclosed Property?
Foreclosed properties are available to be purchased by another individual through auctions, direct listings by banks, or financial institutions such as the PAG-IBIG foundation. Since foreclosed properties are repossessed, most of them are priced with a discount compared to similar properties in the market, or the expected value of the property in normal terms. Through auctions, real estate agents, or through referring on a direct listing, individuals can bid or purchase a property.
How Do I Purchase/Bid A Foreclosed Property Through a Bank?
Through banks, an individual can purchase various types of foreclosed properties like land, a house and lot property, or others. Various processes are required by various banks before an individual can purchase a property from their foreclosed list of properties. For example, a bank can create a list of foreclosed properties and make it readily available on their website for the individual’s perusal. The usual process begins with the individual choosing a property, and inquiring about its status and availability through the bank before making an offer. Offers are still up for assessment by the bank before the individual can complete their purchase.
How Do I Purchase/Bid on A Foreclosed Property Through a Real Estate Firm/Agent?
For those looking to purchase a foreclosed property with the assistance of a professional, a broker or a real estate agent is available to be hired. These professionals are credited and can make the process smoother for the buyer. Credited brokers and real estate agents can also make sure that the buyer can purchase the property at the best possible price.
How Do I Purchase/Bid A Foreclosed Property Through a PAG-IBIG?
Similar to any financial institution, a list of PAG-IBIG foreclosed properties is available on their website under the Pag-IBIG Fund Acquired Assets page, for the buyer’s perusal. A hard copy of the list of available properties is also available in PAG-IBIG offices. Below is a step-by-step guide that you can follow to check out the list of PAG-IBIG foreclosed properties online.
- Visit www.pagibigfund.gov.ph/acquiredassets.html, (Pag-IBIG Fund Acquired Assets page)
- Click the List of Properties for Sale page.
- Select the negotiated sale tab.
- Choose your preferred property location then click on ‘See List.’
- Choose your preferred foreclosed property.
- Click the Print or Download button for a copy of the property’s information.
How Can I Avoid Scams When Acquiring a Foreclosed Property?
The best way to avoid being scammed when acquiring a foreclosed property is to complete careful research and keep your vigilance throughout the entire buying process. While there are many sources of foreclosed properties in the Philippines, it is still important to only work with verified and trusted financial institutions or credited brokers and real estate agents. Below are a few important tips to steer clear of potential scams when purchasing a foreclosed property.
- Only work with reputable institutions or professionals.
- Never get your information from unverified listings released by unknown sources.
- Do your research on the history of the property.
- Consult a professional ( a real estate lawyer or a licensed real estate agent)
- Familiarize yourself with the auction/bidding process of the bank or financial institution of your choice and always be cautious of upfront fees that are not documented.
Buying a Foreclosed Property in the Philippines
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Foreclosed properties are a great option for Filipinos who want to purchase a property with lower prices. However, buyers should know that risks are increased with foreclosed properties compared to other properties in the market. Buyers should ways stay vigilant and complete their own research when purchasing foreclosed properties to ensure that their future home is safe from any issues in the years to come.
References:
- Filipino Homes. (n.d.). » How to bid or buy a PAG-IBIG Acquired or Foreclosed Property this Pandemic. Filipino Homes. Retrieved November 23, 2023, from https://filipinohomes.com/blog/how-to-bid-or-buy-a-pag-ibig-foreclosed-property/
- Radiowealth Finance Company. (2021, August 3). 5 Smart Tips on Buying Foreclosed Properties in the Philippines. Radiowealth Finance Company. Retrieved November 23, 2023, from https://rfc.com.ph/blogs/5-smart-tips-on-buying-foreclosed-properties-in-the-philippines/
- Radiowealth Finance Company. (2021, August 3). 5 Smart Tips on Buying Foreclosed Properties in the Philippines. Radiowealth Finance Company. Retrieved November 23, 2023, from https://rfc.com.ph/blogs/5-smart-tips-on-buying-foreclosed-properties-in-the-philippines/
- Security Bank. (n.d.). Foreclosed Properties for Sale | Repossessed Assets. Security Bank. Retrieved November 23, 2023, from https://www.securitybank.com/personal/loans/repossessed-assets/properties-for-sale/
- Zoleta, V. (2023, July 14). How to Buy Foreclosed Properties in Pag-IBIG (2023 Guide). Moneymax. Retrieved November 23, 2023, from https://www.moneymax.ph/government-services/articles/pag-ibig-acquired-assets
