Foreclosed properties are seen as non-performing assets, which is why banks and lenders who own them actively market these properties to potential owners and investors. One of the most efficient ways of marketing foreclosed properties is by selling them below their market value, thus, making the properties more attractive to buyers. Today, more and more homebuyers see foreclosed properties as an affordable means to own a home. Investors also use these purchases to make a profit by turning them into saleable homes or leasable units. Whatever your motivation for considering foreclosed homes for sale, here are some things you should remember when looking for these kinds of properties in the Philippines:
- There are several places you can turn to when looking for foreclosed homes for sale. Banks, SPAV (Special Purpose Vehicle Act) companies, and government financial institutions such as the Social Security System (SSS), Home Development Mutual Fund (Pag-IBIG), and the National Housing Authority (NHA) are your major go-to institutions when searching the foreclosed homes market. Bank-accredited brokerages are also great places to look as they help financial institutions push these foreclosed assets in the market. Accredited broker websites are also great places where you could look for further information if you want to get a hold of good property deals.
- Now that you know where to look, you should also consider the best and the most important things to sort out when dealing with these types of properties. Location is always one of the first things you should look into, as it affects many aspects of the investment. A property’s location, whether foreclosed or not, dictates its profitability as it affects its selling price, should you decide to resell. Also research about its potential rental rates, should you get into a buy-and-hold strategy. Choose a property that is close to major facilities like schools, hospitals, convenience stores, groceries, wet and dry markets, churches, or business districts, depending on your preference or target market. It is also best to avoid locations near fault lines, flood-prone areas, and those with a high incidence of crime.