I got this listing of foreclosed properties from the Land Bank of the Philippines courtesy of Mr. Joevel Cabrera, who works at Land Bank. This listing of bank acquired assets are for negotiated sale, this means all prices are still negotiable. According to the list, this is updated as of December 31, 2008.
The foreclosure listing contains over one hundred foreclosed properties and includes properties from Metro Manila and Provincial locations.
Buyers have three options of acquiring foreclosed properties from Land Bank and these are through cash basis, installment sale, and through lease with option to purchase.
For installment basis, interest rates indicated on the terms on acquiring foreclosed properties are as follows: (rates for 1st Qtr 2008)
# of Years—–Interest Rate
For Lease with option to purchase, the lessee must do the following:
- lease the property for a maximum period of 1 year
- exercise the option to purchase not later than 15 days before the expiration of contract
- pay 1 month advance rental applicable on the last month and 2 months security deposit, refundable if option is not exercised
- pay 5% of the purchase price, refundable if option is not exercised
- If option is exercised, 90% of the annual lease, 2 months security deposit and 5% option fee shall be applied to the purchase price
This is the first time I have seen a bank that offers the option for buyers to acquire foreclosed properties through a lease with option to purchase. I believe that this could be very advantageous to buyers, especially for new real estate investors as one can first try to lease a property, effectively giving him/her control of it, then he/she can sublease the property to a tenant and have a crack at being a landlord, without actually having to buy the property. This means less risks for the buyer as he/she can have more than eleven months to try being a landlord before deciding if he/she wants to exercise the option to purchase the property. Not a bad way for a first timer to acquire his/her first real estate investment property, right? Anyway, this is based on the assumption that the bank will allow subleasing, better check with the bank beforehand if one plans to do this.
If you’re interested in any of the properties or have any questions or inquiries, you may contact Mr. Joevel Cabrera through e-mail. His e-mail address is firstname.lastname@example.org. Just mention to him that I referred you.
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