I got a copy of BPI’s Buena Mano Super Value Red Tag listing of properties for sale last Friday when I saw a BPI branch in the Atrium in Makati, after I paid the monthly amortization of my Pag-Ibig home mortgage loan. This bank foreclosed property listing is for Metro Manila.
Based on the listing, red tag properties are real estate properties with any of the following special concerns:
-Properties that have pending court cases contesting the foreclosure procedure of the bank
-Properties that are still being occupied by former owners, tenants or illegal occupants,
-Properties whose property documents still need to be updated
Based on the descriptions above, one can assume that for some properties at least, the former owners are still trying to exhaust all means to stop the foreclosure of their property and they are holding out as long as they can. You can’t blame them really. I guess these are examples of real estate loans gone bad. If I had the resources, I would try to help people before they get into a foreclosure situation in the first place.
Now why would anyone in their right mind buy a property with such “special concerns”? Well, the bank will allow big discounts on the selling price of these properties giving buyers better opportunities to buy properties for their own use or for investment. All prices are negotiable and can provide real estate investors a bargain real estate investment property. The buyer should however be aware of the consequences like the long time it could take to have the case resolved and for the bank to take possession of the property.
You may download BPI’s Buena Mano Super Value Red Tag listing for Q4-2008 here. Sorry for the big file, I already tried my best to create the smallest PDF file and I even zipped it to reduce the file size further.
I suggest that first time investors stay away from these types of properties unless they have the resources and patience to deal with such. BPI has other listings which can be great sources of real estate investments with less complications. I will also post them here so don’t forget to subscribe to my mailing list so you won’t miss them. If your mailbox is getting full, you may also subscribe via RSS reader.