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.
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.
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!