Do you want to buy a house but don’t know where to start? You might consider getting a foreclosed property from the bank instead of finding a house for sale on your own or buying from a developer. Netizen Mina Ferranco shares their actual experience of buying foreclosed property from the bank – and also posted some tips to help us out in future transactions with this kind of real estate sale.
According to Ferranco, they were able to buy the property for Php1.8 million. It had the following details:
- 81 sqm lot area
- 77 sqm house floor area
- 2 stories
- 2 toilet and bath
Getting a house from the bank includes some research on your part, but you can also ask your real estate agent for assistance.
Here are some of the tips and steps that Ferranco shared based on their experience.
Step 1: Check Bank Websites for Foreclosed Properties
Apparently, many bank websites have a list of foreclosed properties. If there aren’t any, you can also go to your local bank to inquire.
According to Ferranco, many of these properties have a caretaker – and even if there are people living there, the bank is responsible for making them move out.
Step 2: Contact the Bank with Your Intent
You need to tell the bank of your intent to buy (or bid for) the property. Call or email them. You can also visit their local branch.
Step 3: Prepare Your Requirements and Money
Now that you’ve informed the bank, start gathering your requirements to get your request approved.
Usually, the bank will require your financial documents and an LOI (letter of intent). The bank might also ask you to settle a down payment worth 10% of the amount.
You’ll be notified if you win the bid or the bank approves your intention to buy the property.
Step 4: Settle Your Account
According to Ferranco, the bank might also require you to have at least 15% of the property value in your bank account because you’ll need to settle that amount in 7-10 days.
Once you paid the required down payment, you’ll be asked to sign the deed of sale.
Step 5: Wait for the Turnover
This can vary, but for Ferranco, it only took about a month before the property was turned over to their name.
Step 6: Claim, Renovate, and Move In
Once everything is in order, you can claim your unit. You can renovate the place to your liking – and be sure to change the locks, of course.
According to Ferranco, they spent around Php500k to Php600k to renovate their new home.
Source: Mina Ferranco