Foreclosure Philippines » Property Tax Sale

Four tips for investors who plan to invest in tax delinquent real properties in Quezon City

Jay — Tue, 22 Jun 2010 11:08:49 +0000

The Quezon City Office of the City Treasurer has recently issued another notice of sale of delinquent real properties which shall be sold through public auction on July 8, 2010, 10:00am, at the main entrance of the Taxpayer’s Assessment and Payment Lounge, Quezon City Hall, Quezon City.

If you plan to invest in tax delinquent real properties in Quezon City, I have here four tips for you. But before that, let me share a brief overview on tax delinquent real properties.

What are tax delinquent real properties?

Tax delinquent real properties are properties that have been certified by the City Treasurer to be delinquent in the payment of real property taxes, penalties, and cost due thereon as of the date of publication of the notice of sale. These shall be sold through a public auction by virtue of the provisions of Section 260 and 263 of RA 7160, otherwise known as the Local Government Code of 1991. This can also be referred to as a tax foreclosure auction.

: Image via Wikipedia

The notice of sale for this particular tax foreclosure auction in Quezon City was published last June 14, 2010 in the Philippine Star, pages B-12 to B-15. Due to the large listing of tax delinquent properties, I have split them into four parts which can be downloaded below.

Four tips for real estate investors

Here are my four tips for real estate investors who plan to participate in the Quezon City Tax foreclosure auction on July 8, 2010:

Tip #1

Disregard the address that you will find on the list under the column “Declared Owner”. This is the address of the declared owner, NOT the address of the tax delinquent property that will be auctioned. To determine the address of the property, proceed to Tip #2.

Tip #2

To get the actual address of the property for visual inspection as part of due diligence, refer to the Transfer Certificate of Title(TCT) or Condominium Certificate of Title(CCT) number on the list of tax delinquent properties, just get a copy at the registry of deeds. “What if a property has no TCT/CCT number on the list?” Just get the tax declaration number and the name of the registered owner and bring this to the tax mapping section so that they can give you property details like the exact address, location, and the TCT/CCT number.

Tip #3

The actual list of tax delinquent properties will surely become smaller as the auction draws nearer because most of the owners of the real properties will pay the delinquent tax, interest due thereon, and the expenses of sale. Because of this, be sure to get the most updated list of tax delinquent properties for auction at the Quezon City Treasurer’s Office and have a list of backup properties during the auction.

Tip #4

If after doing your due diligence you decide to bid for a property and win, have the Certificate of Sale (COS) registered with the registry of deeds as soon as possible as the one year period of redemption shall begin to run once the COS has been registered. Winning bidders shall be issued a COS by the City Treasurer upon full payment of the winning bid price. For more details, please refer to the auction guidelines which can be found here.

Got more tips? Please share them here by leaving a comment. Thanks!

Happy hunting!

Jay Castillo

Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Mobile phone (Call/SMS): +639178843882
Follow me in Twitter:http://twitter.com/jay_castillo
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Foreclosure auction of tax delinquent real property in Quezon City slated on April 6, 2010

Jay — Thu, 25 Mar 2010 02:35:45 +0000

There will be another foreclosure auction sale of tax delinquent real properties in Quezon City on April 6, 2010, at 10:00am, at the main entrance of the Tax Payer’s Lounge, Quezon City Hall, Diliman, Quezon City. The sale through public auction is to be done by virtue of the provisions of Section 260 and 263 of RA 7160 otherwise known as the Local Government Code of 1991.

The real property included in the auction have been certified to be delinquent in the payment of real property taxes, penalties, and cost due thereon as of the date of the publication. The notice was published last March 15, 2010 in the Philippine Star.

Due to the large number of real property for public auction, I have split the listing into four parts, where each part consists of one full page. You may download each page below.

Quezon City Notice of Sale of Delinquent Real Property

Expect the actual list of properties for sale on the day of the auction to include fewer properties as owners settle their tax delinquencies as the day of the auction nears.

Prospective bidders are required to post a cash bond of Ten Thousand Pesos (Php 10,000.00) to participate.

Don’t forget to do your due diligence!

Happy hunting!

To our financial freedom!

Jay Castillo

Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Follow me in twitter:http://twitter.com/jay_castillo
Become a Fan in Facebook:Foreclosure Philippines fan page
Text by Jay Castillo. Copyright © 2010 All rights reserved.

PS. If you are an OFW who will be here in Manila, Philippines on March 28, 2010, time is running out for you to reserve your seats for the free Secrets of Wealth seminar for OFW’s. RESERVE NOW by calling Joy: +63927-5707599, or Will: +63917-8580064/(632) 9645512. Don’t miss out on your chance to learn the secrets of wealth from Trace Trajano! Click here for more information about the free Secrets of Wealth seminar for OFW’s.

PPS. If you have a friend or loved one who is an OFW or who knows an OFW, do them a favor and invite them to the free Secrets of Wealth seminar for OFW’s by Trace Trajano. The first 5 who refer at least 3 OFW’s that confirm and attend the seminar will get a free 1-hour consultation from me where you can ask me anything about investing in foreclosed properties. Just leave a comment below if you are interested or have any questions. Thanks!

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Sections 260 and 263 of RA 7160 otherwise known as the Local Government Code of 1991

Jay — Thu, 25 Mar 2010 02:15:52 +0000

Notices for the foreclosure sale of tax delinquent properties in the Philippines always indicate that the sale or auction is being done by virtue of sections 260 and 263 of RA 7160 otherwise known as the Local Government Code of 1991. Rather than include sections 260 and 263 of RA 7160 with every notice of auction sale that I find, I’ll just post them here and link the new notices to this post. You may read sections 260 and 263 after the jump.

The following are sections 260 and 263 of RA 7160 in relation to the tax foreclosure auction of delinquent real properties in the Philippines:

SECTION 260. Advertisement and Sale. — Within thirty (30) days after service of the warrant of levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posting a notice at the main entrance of the provincial, city or municipal building, and in a publicly accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the province, city or municipality where the property is located. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and expenses of sale, the date and place of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the real property or person having legal interest therein may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the provincial, city or municipal building, or on the property to be sold, or at any other place as specified in the notice of the sale. acd

Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the sanggunian concerned, and which shall form part of his records. The local treasurer shall likewise prepare and deliver to the purchaser a certificate of sale which shall contain the name of the purchaser, a description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale and a brief description of the proceedings: Provided, however, That proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein.

The local treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs of collection thru the remedies provided for in this Title, including the expenses of advertisement and sale.

SECTION 263. Purchase of Property By the Local Government Units for Want of Bidder. – In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay the real property tax and the related interest and costs of sale the local treasurer conducting the sale shall purchase the property in behalf of the local government unit concerned to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his office. It shall be the duty of the Registrar of Deeds concerned upon registration with his office of any such declaration of forfeiture to transfer the title of the forfeited property to the local government unit concerned without the necessity of an order from a competent court.

Within one (1) year from the date of such forfeiture, the taxpayer or any of his representative, may redeem the property by paying to the local treasurer the full amount of the real property tax and the related interest and the costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the local government unit concerned.

To our financial freedom!

Jay Castillo

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Tax foreclosure sale of delinquent real properties in Laguna slated on February 10, 2010

Jay — Wed, 03 Feb 2010 10:41:44 +0000

The Office of the Provincial Treasurer of the Province of Laguna is set to sell through public auction a number of tax delinquent real properties on February 10, 2010, 10:00AM, at the FAITH Training Center, Provincial Capitol Compound, Santa Cruz, Laguna. All of the tax delinquent real properties are located at Lewin, Lumban.

The tax foreclosure sale of the said delinquent real properties shall be conducted by virtue of Sections 260 and 263 of RA 7160 otherwise known as the Local Government Code of 1991. I have quoted below Sections 260 and 263 of RA 7160 for everyone’s reference:

SECTION 260. Advertisement and Sale. — Within thirty (30) days after service of the warrant of levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posting a notice at the main entrance of the provincial, city or municipal building, and in a publicly accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the province, city or municipality where the property is located. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and expenses of sale, the date and place of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the real property or person having legal interest therein may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the provincial, city or municipal building, or on the property to be sold, or at any other place as specified in the notice of the sale. acd

Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the sanggunian concerned, and which shall form part of his records. The local treasurer shall likewise prepare and deliver to the purchaser a certificate of sale which shall contain the name of the purchaser, a description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale and a brief description of the proceedings: Provided, however, That proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein.

The local treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs of collection thru the remedies provided for in this Title, including the expenses of advertisement and sale.

SECTION 263. Purchase of Property By the Local Government Units for Want of Bidder. – In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay the real property tax and the related interest and costs of sale the local treasurer conducting the sale shall purchase the property in behalf of the local government unit concerned to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his office. It shall be the duty of the Registrar of Deeds concerned upon registration with his office of any such declaration of forfeiture to transfer the title of the forfeited property to the local government unit concerned without the necessity of an order from a competent court.

Within one (1) year from the date of such forfeiture, the taxpayer or any of his representative, may redeem the property by paying to the local treasurer the full amount of the real property tax and the related interest and the costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the local government unit concerned.

The list of real properties certified to be delinquent in payment of real property taxes can be found below (just click on the image below to enlarge and download)

Tax delinquent properties included in the tax foreclosure sale. Source: Philippine Star, January 30, 2010 issue, page B9

As indicated in the notice, all prospective bidders should register in the Office of the Provincial Treasurer on Public Auction at least one (1) day before the scheduled auction.

Happy hunting!

To our financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Click here to contact me via E-mail
Mobile phone (Call/SMS): +639178843882
Follow me in twitter:http://twitter.com/jay_castillo
Become a Fan in Facebook:Foreclosure Philippines fan page

PS. If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

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City Treasurer of Quezon City to auction tax delinquent properties on December 10, 2009

Jay — Tue, 01 Dec 2009 13:36:47 +0000

The City Treasurer of Quezon City shall be holding an auction sale of real properties with delinquent tax payments on land, building, and machineries on December 10, 2009 at the main entrance, Taxpayer’s lounge, Quezon City Hall, Diliman Quezon City, Philippines.

You may download the list of tax delinquent properties to be included in the tax foreclosure auction sale on December 10 through the links below. This list is updated as of November 23, 2009 and was published in the Philippine Star:

In tax foreclosure auctions, winning bidders will have to pay the whole winning bid amount in cash before the end of the second day from the auction date. Furthermore, the owners are given 12 months to redeem their property. If the property is redeemed within 12 months, the winning bidder will get his/her money back plus interest at a rate of 2% per month. For more information, you may download a copy of the rules and regulations below:

Quezon City Rules, Regulations, and Conduct of the Real Property Tax Auction sale.

I would advice interested parties to verify the properties that are to be included in the tax foreclosure auction sale by getting an updated list at the Quezon City Treasurer’s office. Since a lot of the owners of the real properties on the list would actually pay their real property taxes as the day of the auction nears, expect a lot of properties to be withdrawn from the final list of properties to be included in the auction.

Don’t forget to do your due diligence before even considering to bid on any of the properties included in this tax foreclosure auction. You may refer to my previous post: Quezon City Tax Delinquent Properties public auction sale on October 8, 2009 where I enumerated general steps as reference when doing your due diligence with respect to tax delinquent properties in Quezon City.

Note: I am posting this as a service to readers and subscribers of Foreclosure Philippines. For further information and inquiries, including but not limited to specific questions about any of the properties on the list, please contact or visit the Office of the Provincial Treasurer of Quezon City.

Happy hunting!

—

My vision – financial freedom for all!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Click here to contact me via E-mail
Mobile phone (Call/SMS): +639178843882
Follow me in twitter: http://twitter.com/jay_castillo
Become a Fan in Facebook: Foreclosure Philippines fan page

PS. If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

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Cavite to auction tax delinquent real properties on December 8-9, 2009

Jay — Thu, 29 Oct 2009 02:05:16 +0000

The Office of the Provincial Treasurer of the Provincial Government of Cavite recently published a Notice of Sale of delinquent real properties and as usual, I am sharing the list here for everyone’s reference. The notice of sale contains a list of tax delinquent real estate which are for sale through public auction on December 8 and 9, 2009 at 10:00 AM.

By virtue of the provision of section 260 of the Republic Act 7160 otherwise known as the Local Government Code of the Philippines, the Provincial Treasurer shall sell at public auction the real properties on the list which were certified to be delinquent in payment of real property taxes. The tax foreclosure sale shall be conducted to satisfy all realty taxes, penalties, and cost due thereon as of the date of the tax foreclosure sale.

Properties included on the list of tax delinquent properties are from the following municipalities in Cavite:

Magallanes
Carmona
GMA
Indang
Naic
Bacoor
Noveleta
Imus
Alfonso

Click here to download the complete listing of Cavite delinquent real properties for sale through public auction on December 8 and 9, 2009 or just click on the image below:

Source: Philippine Star, October 22, issue, page B10

Pursuant to Section 260 of R.A. 7160, at any time before the date fixed for the sale, the owner of the real property or person having legal interest therein may stay the proceedings by paying the delinquent tax, and the interest due thereon and the expenses of sale.

Here is section 260 of R.A. 7160 for everyone’s reference:

SECTION 260. Advertisement and Sale. — Within thirty (30) days after service of the warrant of levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posting a notice at the main entrance of the provincial, city or municipal building, and in a publicly accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the province, city or municipality where the property is located. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and expenses of sale, the date and place of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the real property or person having legal interest therein may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the provincial, city or municipal building, or on the property to be sold, or at any other place as specified in the notice of the sale. acd

Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the sanggunian concerned, and which shall form part of his records. The local treasurer shall likewise prepare and deliver to the purchaser a certificate of sale which shall contain the name of the purchaser, a description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale and a brief description of the proceedings: Provided, however, That proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein.

The local treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs of collection thru the remedies provided for in this Title, including the expenses of advertisement and sale.

To get a general idea on what goes on during a tax foreclosure auction, you may refer to my post: 9 Lessons Learned From The Real Property Tax Foreclosure Auction Sale In Quezon City.

Please take note that I am posting this Notice Of Sale as a service to readers and subscribers of Foreclosure Philippines. For further information and inquiries, including but not limited to specific questions about any of the properties on the list, please contact the Office of the Provincial Treasurer directly through telephone no. (046) 419-0155 loc 123 or visit the Office of the Provincial Treasurer, Trece Martires City.

Of course if you have any general questions about tax foreclosure investing, please leave a comment below.

Happy Hunting!

—–

To our financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Social Network: http://foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor [at] gmail [dot] com

P.S. – If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

P.P.S – If you feel that anyone else you know might benefit from this post, please do share this to them and don’t forget to subscribe to e-mail alerts and get notified of new listings of bank foreclosed properties, public auction schedules, and real estate investing tips. If your inbox is getting full, you may subscribe instead to my RSS Feed.

P.P.P.S – Want to have your list of tax delinquent properties featured here? Contact me now and let me help you get your list to real estate investors, and that includes me!

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Quezon City Tax Delinquent Properties public auction sale on October 8, 2009

Jay — Mon, 05 Oct 2009 03:49:05 +0000

Here’s a heads-up for both Quezon City taxpayers who might be delinquent in paying their real property taxes and for real estate investors who may want to help. I accidentally found this notice on the same issue of the Philippine Star where I got the complete listing of tax delinquent properties from the Province of Rizal which was recently auctioned in Antipolo City.

Anyway, before I explain how real estate investors can help those delinquent in paying their real property taxes, let me share more details about the tax foreclosure auction sale to be held in Quezon City. The Quezon City Treasurer shall be holding the auction sale of real properties with delinquent tax payments on land, building, and machineries on October 8, 2009, 10:00 A.M., at the 2nd floor of the Taxpayer’s Lounge, Quezon City Hall. Furthermore, all Quezon City taxpayers who may be delinquent in paying their real property taxes are advised to settle/update their realty tax arrearages before the date of the auction sale (October 8, 2009) to avoid inclusion of their properties.

(Source: Philippine Star, September 7, 2009 issue, page B13)

Time for Due Diligence

As usual, all prospective bidders are also requested to do their due diligence and verify the properties they may want to bid on at the Quezon City assessor’s office and the Register of Deeds of Quezon City. In summary, you can do this by:

Get the updated list of tax delinquent properties for auction at the Quezon City Treasurer’s Office
Get the tax declaration number and other important details that you will bring to the tax mapping section
Give the property details you got in step 2 above to the tax mapping section so that they can give you property details like the exact address, location, Transfer Certificate of Title (TCT) number, etc. You can also ask for more details that they may know about the property (ex. if it will be affected by a road widening project in the future, etc.)
From the information you got from step 3 above, you can then proceed to Quezon City register of deeds which is located in East Avenue to get a certified true copy of the TCT.
You can then inspect the property if you want along with other due diligence tasks.

How can real estate investors help?

As I have mentioned in the beginning of this post, real estate investors can help those Quezon City taxpayers who might be delinquent in paying their real property taxes. This can be done by paying the arrears in real property taxes, penalties and other costs (all of which are equal to the minimum bid price) for the property owner through a winning bid. This basically buys some time for the property owner (12 months to be exact and is referred to as the redemption period) to settle his/her arrears.

As an incentive, the winning bidder earns an interest of 2% per month and he/she will receive this once the property owner is able to settle his tax arrears within the 12 month redemption period.

Click here to download a complete copy of the Quezon City Rules, Regulations, and Conduct of the Real Property Tax Auction sale.

As I have often said in the past, it would be better to invest in real property tax foreclosures without the intention of actually getting the property. I believe this is a win-win solution for everyone – the owner gets another 12 months to come up with enough funds to settle his arrears, the local government gets to collect the taxes they need to fund their operations and local projects, and the real estate investor gets to earn 2% per month or up to 24% for 12 months by buying some time for the property owner and also for helping the local government collect taxes. By the way, I stumbled upon the comments section of an article I found in philfaqs.com which explains this very well, please do check it out here: http://philfaqs.com/phils-business/make-money-at-home-free-education-know-what-donald-trump-knows/#comment-14895

Sorry if I am unable to post an updated list of the Quezon City delinquent properties for public auction. Ever since our house was devastated by the floods last week, we have been very busy picking up the pieces and relocating to a place we can temporarily live-in while our house is being repaired and becomes livable again. A big thank you goes out to all of those who gave words of encouragement and prayers. Let’s continue praying for and helping those that were affected by the recent typhoons.

By the way, it’s nice to be back!

—–

To our financial freedom!

P.S. – If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

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Antipolo Tax Delinquent Properties public auction

Jay — Wed, 23 Sep 2009 04:32:14 +0000

The Office of the Provincial Treasurer of the City of Antipolo recently published a notice of sale of tax delinquent properties. The notice of sale for the tax delinquent properties were published in the September 7, 2009 issue of the Philippine Star. I’m just glad my mom was able to find the notice of sale not just for me but for all of us. Thanks Mom!

According to the notice of sale, the Office Of The Provincial Treasurer will be selling the tax delinquent properties through public auction on September 30, 2009, Wednesday 9:00 AM, at the Department Heads’ Conference Room, 3rd Floor Capitol Building, Ynares Center, City of Antipolo, Province of Rizal.

The tax delinquent properties listed on the notice of sale were said to be delinquent in payment of real property taxes, penalties and cost due thereon as of the date of publication of the notice of sale.

Click here to download the Notice of Sale for Tax Delinquent Properties in Antipolo City for public auction on September 30, 2009. (or click on the image above)

The most recent foreclosure auction of tax delinquent properties I attended was in Quezon City and you can read more about it here and here. Speaking of Quezon City,they shall also be holding their own real property tax foreclosure auction on October 8, 2009. I’ll share more details about this in my next post.

Happy hunting!

—–

To our financial freedom!

P.S. – If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

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9 Lessons Learned From The Real Property Tax Foreclosure Auction Sale In Quezon City

Jay — Fri, 03 Jul 2009 15:54:28 +0000

I attended the Quezon City real property tax foreclosure auction sale yesterday and although I was only able to make it to the last forty minutes of the auction, I was still able to learn a lot and I would like to share these lessons here.

1. It would be a good idea to set a meet-up with someone else attending the auction because it will compel you to honor the commitment you have made and really attend the auction, even if you had a perfect excuse not to do so. In my case, I was thinking of not attending the auction because I felt very weak due to a bout with LBM the night and early morning prior to the auction but when Robert, a fellow Think Rich Pinoy Club Marikina member sent me an SMS message that he was already there, I thought to myself that with the help of 2 capsules of Loperamide and a big bottle of water, I can handle it! I got myself ready and went to the auction, although I was more than an hour late. Nevertheless, I still made it.

2. Don’t even think about not doing your due diligence. Actually, a day before the auction, I learned from a fellow interested bidder that she received information that some properties on the list might get hit by a road widening project. She said she only learned about this when she did her due diligence and she can only imagine what would happen if someone bought those properties and only found out later what was going to happen to them. I’m sure all would agree that no one wants to be in that situation. But how exactly do you do your due diligence on properties that are part of a real property tax auction? Please see the next item to find out!

3. One aspect of due diligence is inspecting a property, and you would of course need to know its exact location. To do that, you should go to the tax mapping section located at the ground floor at the back of the main building at the Quezon City Hall. Be prepared to give details like the property index number, lot number, block number, Barangay, Tax Dec. number, etc., which you can find on the notice of sale of delinquent real property. If you don’t give them this information, they won’t be able to find the property for you. If you supplied the correct information, you will get the exact location of the property and the people there may also be able to give information like the example I mentioned in item 2 above.

4. Based on the information you got on item 3 above, you can decide if a property warrants further evaluation and if so, the next stop would be the Registry of Deeds (RD) at located at East Avenue. For the Quezon City RD, a certified true copy of a TCT/CCT may take 2 or 3 days to get released so you should take note of this lead-time. Unlike in Marikina where copies of the TCT’s/CCT’s were available at the auction venue, none were available in the Quezon City auction. Once you get the certified true copies, you can then check for any liens, documentary or legal problems with the title(s) and decide if the properties are safe to bid on.

5. During the auction, I noted that the minimum bid is actually the amount indicated on the notice of sale of delinquent real property plus Php10,000. I don’t know why this was so as I arrived late but that was what I observed. For example, if a property had a delinquent amount of Php17,000 on the notice, it’s starting bid price would be Php27,000.

6. The bids were raised by the auctioneer(which, if I’m not mistaken, was the City Treasurer Himself, Mr. Victor B. Endriga, Ph. D) by raising it to the next nearest Php25,000 multiple. For the example, in item 5 above, from the minimum bid price of Php27,000, the next bid price would be Php50,000, then Php75,000, then Php100,000, and so on and so forth. I also noted that in case all the bidders lower their paddles containing their permanent auction numbers, the auctioneer will backpedal and lower the bids in Php5,000 increments, that is, until someone raises their paddles again.

7. If the auctioneer notices that there are very persistent bidders for a particular property, at his discretion, he raises the bids in Php100,000 increments to make the bidding process faster. I noticed this in one hotly contested property that ended up being sold for more than 1M. The bidding was really very fast, some properties were sold in a matter of seconds. The auction went by quickly and it was over before lunch-break.

8. They don’t accept personal checks as full payment from winning bidders as they only accept cash and manager’s checks. In Marikina, they accept personal checks. This is just one of the significant differences I noticed between the Marikina Rules and regulations and the Quezon City rules and regulations. You can check them out here and here respectively if you want to compare them yourselves.

9. These real property tax foreclosure auctions are held quarterly in Quezon City and the next one will most probably be during the first week of October, 2009. This means I should already be on the lookout for the new list starting September. As usual, I will share it here once I get it so don’t forget to subscribe to my mailing list get notified!

I hope to see you on the next Quezon City real property tax foreclosure auction!

Happy investing!

To our financial freedom!

Jay Castillo
Real Estate Investor
REBL#: 20056
Blog: www.foreclosurephilippines.com
Social Network: foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor@gmail.com

Related posts:

Quezon City Property Tax Sale On July 2, 2009

Jay — Tue, 23 Jun 2009 09:00:51 +0000

The Quezon City Office of the City Treasurer shall be having a property tax sale through public auction on July 2, 2009, 10 a.m., at the main entrance, Taxpayer’s Lounge, Quezon City Hall, Diliman, Quezon City. As stated on the notice of sale of delinquent real property which was published last June 15, 2009 in the Manila Bulletin as a special supplement , the real property listed on the notice are hereby certified to be delinquent in the payment of real property taxes, penalties, cost due thereon as of the date.

Property Tax Sale Overview

A property tax sale generally happens when a real property is sold through public auction for nonpayment of real property taxes. Take note that the sale is still subject to a one year redemption period which gives the owner time to pay all taxes due plus interest and surcharges before the City treasurer can execute a final deed conveying to the purchaser (the winning bidder) the said property.

In order to redeem a property, the owner of a real property will have to pay the total amount of taxes, fees, interest or penalties, cost of sale, and other delinquency charges, from the date of delinquency to the date of sale, plus interest of 2% per month on the purchase price to the date of redemption. The winning bidder shall likewise receive the entire purchase price paid by him plus interest of 2% per month computed from the date of sale to the date of redemption. This shall be given to the winning bidder by the City treasurer or his deputy upon the surrender of the certificate of sale issued to him as the winning bidder during the public auction.

In case the taxpayer fails to redeem the property within the one year redemption period, the City Treasurer shall execute a final deed conveying to the purchaser said property, free from the liens of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceeding upon which the validity of the sale rests. To get more details like rules and regulations, conduct of sale, etc., it is highly recommended that interested parties visit the Quezon City Office Of The City Treasurer.

Based on the notice, prospective bidders on the public auction sale are required to post a cash bond of Php5,000.00.

You may download the list of delinquent real properties included in the Quezon City Property Tax Sale through the following links: Page 1, Page 2, Page 3

My wife and I were able to attend our first property tax sale last November 2008 in Marikina and we learned so much from that experience. What sticks in my mind is that investing in tax foreclosures will either give an annual return of 24% or you get a property at a fraction of its market value. Better read my post about the Marikina Tax Foreclosure Auction to find out more.

Happy investing!

To our financial freedom!

Jay Castillo
Real Estate Investor
REBL#: 20056
Blog: www.foreclosurephilippines.com
Social Network: foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor@gmail.com

P.S. – I am still in catchup mode as I still have lots of post migration tasks to do like posting listings sidelined by the migration, adding e-mail notifications for succeeding comments, using google custom search instead of the default wordpress search, optimizing categories and tags, reformatting and editing of old posts to add categories and tags, and answering all your e-mails and comments. Sorry for inconvenience and please do let me know if you encounter any problems accessing this blog or any of its contents. Thanks!

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City Of Tagaytay’s Final Notice For Public Auction Sale Of Delinquent Real Property

Jay — Thu, 04 Jun 2009 14:59:00 +0000

The City of Tagaytay has already issued its 2nd and final notice for the public auction sale of delinquent real property. The two (2) day public auction sale of delinquent real properties shall be held on June 24 & 25, 2009 at the Tagaytay International Convention Center (TICC), Tagaytay City.

According to the public notice, at any time before distraint of real property, payment of the Real Property Tax, inclusive of surcharges, interests, and penalties may be made. This means that delinquent real property owners can make payments up to the time just before the public auction sale. Expect changes on the actual list of properties at the time of public auction as property owners make last minute payments.

As I have experienced during a similar tax foreclosure auction in Marikina, a significant number of properties were removed from the final list of properties for public auction, including properties I intended to bid on. I had to choose among the remaining properties at the last minute for other properties to bid on.

I therefore advice bidders to come early to have ample time to make choices among remaining properties in case your original target property is no longer for public auction.

Pre-registration of interested bidders

There will be a pre-registration of interested bidders one (1) week before the date of auction sale where they will be assigned their permanent individual bidder’s number. Duly registered bidders will be given their copies of lists of properties for auction, rules and regulations and bidding form upon payment of non-refundable amount of One Thousand Pesos (Php1,000.00) only, to cover the costs of printing, miscellaneous and other incidental expenses during the auction sale.

Based on my experience during the Marikina tax foreclosure auction last November 2008, investing in tax foreclosed properties would normally give a return of 2% per month or 24% in total per year on top of the amount of the winning bid.

For example, let’s say you won on your bid for a property for Php100,000, you will earn a monthly interest of 2% which means you earn Php2,000 per month. You are paid this interest along with the winning bid amount when the property is redeemed by the owner of the property. Since the owner is given 1 year to redeem the property, you can receive a maximum return of 24% or Php24,000. If in case the owner does not redeem the property by failing to pay the Real Property Tax, inclusive of surcharges, interests, and penalties, then the property is yours for a mere Php100,000, which in most cases is just a fraction of the market value of the property!

Do take note that tax foreclosure auctions often require the winning bidder to pay the entire bid amount on the day of the auction. This is one major difference with public auctions of bank foreclosed properties where only 10% to 20% of the winning bid are required as downpayment.

Click here to download the City of Tagaytay’s 2nd and Final Notice of Public Auction Sale Of Delinquent Real Property

(Source: Philippine Daily Inquirer, June 1, 2009, Page F2-F3)

If you would like to learn more about tax foreclosures, do read my post about the Marikina Public Auction of Real Properties with Tax Delinquencies last November 13, 2008.

To our financial freedom!

Jay Castillo
Real Estate Investor
REBL#: 20056
Blog: www.foreclosurephilippines.com
Social Network: foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor@gmail.com

Related posts:

City of Tagaytay Issues 1st Notice Of Delinquent Real Property

Jay — Sat, 04 Apr 2009 04:34:00 +0000

The City Of Tagaytay recently issued a first notice for delinquent real property and this was also published in the March 20, 2009 issue of the Philippine Daily Inquirer. According to the notice, the properties listed were declared delinquent in payment of real property taxes by virtue of the provisions of SEC. 2A. 44 of the Codified Revenue Ordinance of Tagaytay City enacted from Section 254 of the local Government Code of 1991.

Tagaytay, Taal Lake and Volcano Island. Image by Storm Crypt via Flickr

Do take note that this is just a first notice which means owners of the properties included in the list can still pay their realty taxes inclusive of surcharges, interests, and penalties and avoid the foreclosure of their properties. However, in case an owner fails to settle their real property tax arrears on time as stipulated on the ad, the delinquent real property shall be sold through a public auction. Expect the actual list of tax foreclosed properties for public auction to contain significantly less number of properties.

Download the City of Tagaytay’s 1st Notice Of Delinquent Real Property Listing Here.

As I have mentioned in my previous post about the 2008 Marikina tax foreclosure auction, investing in tax foreclosed properties would normally give a return of 2% per month or 24% in total per year on top of the amount of the winning bid.

For example, let’s say you made a bid for a property for Php100,000 and you won, you will receive 2% per month on top of the Php100,000 which means you earn Php2,000 per month, when the property is redeemed by the owner of the property. You can receive a maximum return of 24% or Php24,000, if it takes the owner the maximum 1 year to redeem the property. Not bad at all! If in case the owner does not redeem the property, then the property is yours for a mere Php100,000!

Unlike public auctions conducted by banks that only require a down payment of 10% to 20% of the winning bid, tax foreclosure auctions require the winning bidder to pay the entire bid amount on the day of the auction. The City of Tagaytay should be releasing auction guidelines when the public auction schedule is finalized. As of this writing, no official schedule has been set. You may also visit their website to get the contact information of the City Treasurer’s Office. In the meantime, you may read the Marikina City rules, regulations, and conduct of the public auction as reference. I’ll be posting additional information once they become available so don’t forget to subscribe to my mailing list by simply entering your e-mail address here:

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P.S. I have finally migrated Foreclosed Real Estate Philippines to its own dotcom domain which is http://www.foreclosurephilippines.com. Although the old blogspot address still works and is automatically redirected to the new address, please consider updating your bookmarks to the new address as soon as possible. Updating of all internal links is ongoing and is a work in progress. Do let me know if you encounter any broken links or any problems when accessing Foreclosed Real Estate Philippines by sending an e-mail to ph.investor@gmail.com. Thanks!

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San Juan – Certified List Of Tax Delinquent Real Properties

Jay — Mon, 17 Nov 2008 14:25:00 +0000

I have here a certified list of tax delinquent real properties from the city of San Juan. This list is updated as of September 2008.

If ever they do push through with a public auction, I hope it would be as organized as the recent Marikina Public Auction of Real Properties with Tax Delinquencies . I’ll be saving my 13th month pay and other savings for this just in case they schedule it this December or January next year. For those not familiar with tax foreclosures, they normally give a return of 2% per month or 24% per year on top of the amount of your winning bid .

Lets say your bid for a property for Php100,000 won, you will receive an additional 2% per month on top of the Php100,000 when the property is redeemed by the owner of the property. If it takes the owner the maximum 1 year to redeem the property, you earn 24% or Php24,000 on top of the Php100,000.

If in case the owner does not redeem it, then the property is yours! For tax foreclosures however, you have to pay your entire bid amount on the day of the auction. At 24% per annum however, that beats any mutual fund out there right now and this is guaranteed by the government and secured by a real estate asset. For specific details, better read the Marikina City rules, regulations, and conduct of the public auction as reference. Other local governments like San Juan should have similar guidelines.

I have yet to find any information on the schedule for a public auction, if any. Please do post a comment or send me an e-mail at ph.investor@gmail.com if anyone finds any information about this so I can post the information here as well. Thanks!

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Marikina Public Auction of Real Properties with Tax Delinquencies – Nov 13, 2008

Jay — Thu, 13 Nov 2008 14:06:00 +0000

My wife and I along with fellow real estate investor friends attended a Tax Foreclosure Auction in Marikina City last November 13, 2008. Although I did not win the bidding for any of the Marikina tax delinquent properties that I was interested in, the time was well worth it as I had learned so much from the experience. I would like to share with you what we learned.

Image via Wikipedia

1. It’s okay to buy properties with mortgages. In case you win the bidding and then the property got foreclosed by the bank where it was mortgaged within the 1 year redemption period, the bank will be the one to pay the local government the real property tax deficiencies, not the owner. When the bank pays, you get your money back, which is the full purchase price (your winning bid) plus the 2% interest per month. If it’s not foreclosed, then you get the property after the 1 year redemption period and you’ll most probably assume the mortgage. Yes, you get the property for what the previous owners owe the bank, which is a bargain especially if the previous owner had an equity of 30% or more. Sounds tempting but if this happens, you need to eject the previous owner. More on this later.

2. Check the Transfer Certificates of Title (TCTs) at the City Treasurer’s office, not at the registry of deeds. I wasted my time going to the Registry of Deeds where only 1 out of 9 TCT’s of properties I was interested in could be found. The rest were probably being annotated hence they were not in the records section. I could have just checked with the City Treasurer’s office directly. I could have probably checked more TCT’s and I could have bidded for more. As a general rule, I don’t bid on properties unless I have checked the TCT’s for authenticity, encumbrances, etc.

3. Choose properties that have been delinquent for only a short period of time. These are most probably newer and in better condition, hence, owners would be more inclined to redeem them. Properties that have been delinquent for 10 years or so, would most probably have owners that have little capacity to pay or have no intention of redeeming the property. Moreover, you will most probably have a hard time ejecting them and even if you are successful, you have a lot of repairs to take care of afterwards.

4. Keep in mind that your objective is to earn interest from your investment. Your winning bid will earn at an interest rate of 2% per month or 24% per year if it takes a year for the owner to redeem the property. Don’t have the mindset that the property will not be redeemed and that you are in effect buying the property for the bid price only. In the unlikely event that the property is not redeemed, you will have to eject the previous owner. And most probably, the previous owner will not go away without a fight. Next step would be to file an ejectment case and this is something you should avoid as much as possible, because they take years to resolve and will cost you a lot of time, money, and effort, not to mention mental anguish and sleepless nights. We met someone during the bid who said 2 properties she bought in previous auctions were not redeemed and they are now having a very hard time ejecting the previous owners. Not a pleasant situation you’d want to get stuck in.

5. Don’t choose a property that does not have an annotation fee listed on the list of properties for auction. If there’s no annotation fee, this means that the local government was unable to annotate the levy of execution on the TCT, and this implies that the TCT is missing or has other problems. You wouldn’t want to end up with a property with a lot of problems, would you? Para kang kumuha ng batong ipupukpok sa ulo mo pag nagkataon. Instead of earning money from the auction, your money may be tied up to a non-performing asset which no one in their right mind would buy.

6. Observe, mingle, and network with fellow bidders. Most of the ideas I wrote above came from a conversation I had with a fellow bidder who turned out to be a real estate investor that had been acquiring properties for sometime already through tax foreclosure auctions. We were quite lucky that she was very generous in sharing her knowledge and was open to my questions. Although she outbidded me on the properties on my list, it was okay as I learned a lot from her. After the auction, I was able to exchange calling cards with her and a number of other real estate investors and we also chatted with each other for a while. I found probable future partners and mentors.

7. Get your hands on the listing as soon as possible so you can check more properties and have more options. You’ll also have a better chance of acquiring more properties. It really is a numbers game. Just remember to set a maximum bid for each property and don’t ever get carried away and bid higher than the ceiling you have set. The auction can get very exciting and you may be “challenged”, so to speak, by another bidder who keeps out-bidding you. Don’t let your competitive spirit get the better of you.

8. On a practical note, do come early for the auction. The Marikina Tax Foreclosure Auction was scheduled at 10 am but I was there at around 8:30 am and was able to find parking space easily. I didn’t have to rush with the registration. I was the no. 5 bidder and could get choice seats. Sit at the front so that you can be easily seen by the auction master. When bidding, raise your number high and speak loudly and clearly so that your bid will be counted. The auctioneer, in his desire to raise the bid amount, can speak very fast and the bidding can go by in a flash. You have to be on your toes and bid quickly and with confidence. In the Marikina auction, the auctioneer just said “Any bid higher than PhpXXX? Going once, going twice, Sold to no. XX for PhpXXX!” and banged the gavel, signaling the award of the bid to the winner. There were times when a bidder raised his number and mentioned his bid merely seconds after the auctioneer banged the gavel, but nothing could be done anymore. Take note that the banging of the gavel is the signal of the end of the auction for a particular property. If you really want a property and the bid amount is still within your set ceiling, don’t be shy! Raise your number high and shout your bid if you must. Otherwise, you may end up with regrets.

9. Don’t be afraid to ask questions to the auction team. You may ask for clarification on certain matters – for example, if the property being auctioned is the building only (this sometimes happens, although it’s weird that the land is not being auctioned off). I even checked the TCT’s of some properties minutes before they were auctioned.

(Disclaimer: Please check if the above observations apply to your area. If in doubt, consult your lawyer or the legal staff at the auction prior to bidding)

Another thing worth mentioning was that the properties for auction had pictures displayed along with property details at the city hall lobby! I believe the Marikina city hall staff outdid themselves in handling a very organized auction. The auction committee was present as well as legal and other staff. The rules and regulations governing the auction were given to all bidders. Read them here. It’s better to study
the rules before you go to an auction. Answers to questions such as, “Does the local government get the bid amount in excess of the delinquent taxes?” or “Does the 2% interest per month apply to the bid price or to the amount of delinquent taxes only?” or “Do I have to pay the entire bid price immediately?” are found in the rules.

I noted too that there were actually visitors from San Juan’s Treasury Office, probably noting the best practices which they would want to apply when they have their own tax foreclosure auction. Don’t worry, I’ll post details for the San Juan City Tax Foreclosure Auction once I get any information on this. If you don’t want to miss the listing, I suggest you subscribe to my mailing list.

How about you, have you been to any tax foreclosure auctions here in Metro Manila, Philippines or do you know of any upcoming ones? Please do let me know by leaving a comment below or send me an e-mail at ph.investor@gmail.com.

See you at the next auction!

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