When I recently posted the Buena Mano Green Tag Catalogues for Q2-2009
, the post received an anonymous comment saying that prices of BPI foreclosed properties are too high even for end buyers. Well, if you are looking for cheaper properties, the following just might be what you are looking for. The Buena Mano Yellow Tag foreclosed properties are cheaper to buy because they have special concerns. A Buena Mano real estate property is considered a Yellow Tag property if it has any of the following special concerns:
- The title of the property may still be in the process of transfer to the name of the bank which foreclosed the property
- The title of the property is already under the name of the bank but the property is still occupied by the former owner, tenant, or illegal occupant
- There are property documents that stll need to be updated
Of these three conditions, I would consider item number 2 as the only one which would make me stay away from a property as this is the most difficult one to resolve in terms of time, money, and resources. This is the reason why I often give the advice to “just walk away” if a property happens to be occupied.
On the other hand, if the title of a property is still in the process of transfer to the name of the bank, I believe that it is really only a matter of time and the title will eventually be consolidated and transferred to the name of the bank. It may take some time but the discount on the selling price may make it worth the wait.
For properties that have property documents that need to be updated, I may also consider buying them provided that the updating of the concerned documents would not cost too much and are workable and manageable. If for example the real property tax needs updating and the arrears are not that big, then I guess I would be willing to shoulder it.
At any rate, Yellow tag properties will allow buyers to get bigger discounts on the selling price giving investors and end buyers alike a better opportunity to buy properties for investment or personal use.
Don’t forget that all prices are negotiable and this also applies to the Green Tag properties. So if you think that BPI foreclosed properties are expensive, why not try to submit an offer first before giving up. Who knows, your offer just might get accepted but you will never know that unless you try right?
To our financial freedom!
Real Estate Investor
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Text by Jay Castillo. Copyright © 2009 All rights reserved.