If you are looking for foreclosed homes for sale, you just might find what you’re looking for in the post-auction foreclosure listing of RCBC Savings Bank. This foreclosure listing includes unsold properties from their recent Dream Buys Auction Sale held last February 28.
Since this is not a public auction, interested buyers can acquire foreclosed properties at their minimum bid price, without the hassles of having to compete with other bidders. In public auctions, bidders trying to outbid each other and this often leads to significant increases in the selling price.
Areas covered in this foreclosure listing are Makati, Paranaque, Las Pinas, Muntinlupa, Quezon City, Marikina, Antipolo City, Caloocan, Cainta, Rizal, Valenzuela, Laguna, Cavite, Bulacan, Bataan, Nueva Ecija, Pampanga, Tarlac, Pangasinan, Baguio, Batangas, and Quezon Province.
Download the RCBC post-auction foreclosure listing here.
The minimum downpayment is 20% and financing terms can be as long as 10 years. The interest rate for the first 5 years is fixed at 12% per annum and is repriceable on the 6th year onwards.
One good thing I like about buying foreclosed properties from RCBC is that if a buyer decides to pay through installments, a contract-to-sell (CTS) is used, which means it is easier to get your bank financing approved, as compared to other banks whose bank financing are through mortgage loans.
Also, if ever you do decide to make an early full payment, they will not charge you with any pre-termination fees on your loan unlike other banks. Furthermore, creditable withholding tax (CWT), updating of real estate tax, homeowner dues and utilities like water and electricity, shall be for the account of the bank. I learned all about these because of my recent acquisition of a foreclosed property from RCBC. Of course, if you do decide to purchase a property, verify if the above is also applicable as part of your due diligence.
If you are looking for foreclosed homes, its either you’re a real estate investor looking for a new investment property, or a home buyer looking for a new residence. Either way, this foreclosure listing just might have what you are looking for.
Happy hunting and I wish you all successful investing.
Hello Anonymous, yes, the bank may lose money if they accept your offer if it is below the amount owed by the borrower. Sometimes, banks are willing to lose money, on a case to case basis, and the only way to know this is to submit offers and see if they will accept it. Unsold properties will remain in their inventory of Non-performing assets. No bank in their right mind would want a big inventory of non-performing assets because of the costs involved in maintaining such assets which do not generate any income, which is why they may accept offers at a discount. Bulk purchases do happen where corporations or a group of investors make bulk purchases of bank acquired assets, these groups would probably enter into negotiations with the banks directly. Banks normally don’t acquire foreclosed assets of other banks as they are not really in the real estate business. However, when bank mergers occur, the remaining bank will end up with the inventory of foreclosed assets of the bank it merged with.
In other words if my offer is about same or Php1.00 over the annotated mortgage amount shown on TCT/CCT, then most probably my offer will be accepted without much haggling/ efforts (provided I’m the only one who offered).
If my offer of 40% less than ISP or MBP (banks appraised value) and will sum up to less than annotated price, banks will lose money if they accept my offer, right.
But I understand banks are motivated in disposing their foreclosed but are they WILLING TO LOSE MONEY on each of their lstings?
Besides, what happen with this properties that not being sold? It will sit in their portfolios 4ever? Are there ways they sell in bundles to big time investors or maybe another banks with huge discounts? Thank you. Sir!
Hi Anonymous, personally I would target at least 40% less than the ISP or minimum bid price (MBP) and work my way up until I reach my maximum allowable offer(MAO), the point where I can still make enough money that makes a property worth buying. However, before I submit offers, I check how much is owed or the mortgage amount as annotated on the TCT or CCT which can be checked at the registry of deeds as part of due diligence. I noticed that my offers that got accepted are just about equal to the mortgage owed which is what the bank needs to recover.
Banks have their own appraisers and nowadays they usually base their asking price on their own appraisals and give discounts between 10% to 40% to make a quick sale, depending on the condition of the property(clean title, occupied or not, under consolidation, with pending court case, needs major repair, etc.). Their appraisals are subjective hence I suggest you make your own based on comparable properties which would be your basis if a property is a good buy or not. I hope I have answered your questions, just let me know if you need further clarifications. Thanks for dropping by!
Sir how low we can go on bank’s INDICATIVE SELLING PRICE (ISP) shown on their 4closed lstings. And, how bank came up with this figures? Is this comparable market value? I remembered you got an apt b4 with almost 1/2 price 3.2M asking and offered 1.9M right?
Some says 5%-10% less from ISP if title is clean, 20%-30% if still occupied and up to 40%-50% if you want to wait 4evr (lis penden)? Tenk u.