Buying & Rental Tips

6 Smart Tips When Buying a Foreclosed Home in the Philippines

Foreclosed homes offer more options when buying a real estate property in the Philippines.

By: Eunice Sheene Fulgencio | September 24, 2018
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Home buying is a skill that requires much research, much preparation, and much knowledge about. It isn’t a “try again next time if the purchase goes bad”. One: it is a major life decision; and, two: the funds are only limited. So if you are a homebuyer (or planning to be one soon), you have your work cut out for you on one knowing where to look for a real estate property.

One option to consider is the buying of foreclosed homes. Foreclosure means the previous owners failed to pay their mortgage, so all of their rights to the property were taken away. The property is now temporarily owned by the bank or the lending company until it is resold. Foreclosed homes are usually of great value because the lenders have a high need of getting their money back. And while this may seem favorable as you get to save a few bucks, precautions need to be taken seriously.

Make sure you’re well equipped when buying a foreclosed home in the Philippines. The following are easy, smart real estate tips you should consider when buying foreclosed homes:


1. Select a capable agent




buying a foreclosed home Philippines

Be critical in selecting who you want help from.



Calling in the real estate experts to lend you a helping hand will do you a world of good. Since this is how they make their living, these people are aware of the ins and outs of the entire process. Real estate agents know where to look for properties best, and give you sound advice. They can also refer you to a list of capable lenders from their database, which is the next crucial step.


2. Get pre-approved




buying a foreclosed home Philippines

When buying properties, you can use all the aid you can get.



After choosing an agent to assist you along the way comes getting pre-approved from lenders they recommended. Since many others are also looking into these properties, getting pre-approved by the lenders will assure the property seller that you are capable of settling your future payments. These lenders include the mortgage brokers, banks, and the government-owned Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno (Pag-IBIG) Fund.


3. Know your sources




buying a foreclosed home Philippines

Be as critical as you can be when selecting a property.



While it may seem that foreclosed properties are only featured online and in newspaper ads, there are actually properties in traditional listings that are worth taking a look at. As a homebuyer, it is your responsibility to make sure you check out all possible sources of listings before making any big decisions. Some sources you can look into are lending institutions, government financing institutions such as Pag-IBIG and the Social Security System (SSS), banks, and the National Housing Authority (NHA).


4. Participate on auctions




buying a foreclosed home Philippines

Be on the lookout for property auctions.



Aside from public listings, a good way to scope out properties with potential is by attending property auctions, which are usually organized by real estate brokers or banks. Houses during these auctions usually cost less because bidding is allowed giving you the assurance that you won’t overpay for a property. Not only that, you’ll also get to talk to the seller face-to-face where your questions and concerns will be easily answered.


5. Bid accordingly




buying a foreclosed home Philippines

Bid for your favor, not for your loss.



Speaking of auctions, bidding is a handy tool to master when attending one of them. A good strategy to sharpen your skill is by attending as many auctions as you can, but not participating in all of them. Just observe and learn a few tricks during the first few of them until you get the hang of it. And when the time to bid comes, make sure that you’ve researched the property well in order to know a good amount to bid, and have a maximum number in mind to help keep you from going over budget.


6. Don’t skimp out on personal inspection




buying a foreclosed home Philippines

Know where your hard-earned cash will be going.



You might have thought that the hard work is over after selecting a property, but there is more before finally handing your hard-earned money. After all the preparations and practice comes the most important part: checking the actual property. Foreclosed properties are usually sold “as is, where is”, and since they are pre-owned, no house will be picture perfect. List down the necessary repairs it’ll require. Also, make a budget on how much you’ll be willing to spend to refurbish the property.


Foreclosed homes are a good option when property buying if done rationally and wisely. And if you would remember the tips mentioned above, you will surely encounter lesser mishaps along the way.




Have any experience in foreclosed home buying in the Philippines? Tell us how it went in the comments below!


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About Eunice Sheene Fulgencio
Eunice knew that she’d be writing for the rest of her life from a very young age. Naturally introverted, she is selective with how she uses her time and who she spends it with. Has a penchant for sweet treats, sentimental proses, and online personality quizzes. A true-blue INFJ.
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Disclaimer: All articles in the Consumers Magazine of Yoorekka are for general information and entertainment purposes only. Although careful research has been made in writing them, Yoorekka does not make any warranty about the completeness and accuracy of all information presented in our articles. Our content is not intended to be used in place of legal, medical, or any professional advice.
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