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Frequently Asked Questions (FAQ) About Foreclosed Properties

I have started this Frequently Asked Questions or FAQ about foreclosed properties for the benefit of visitors who may be looking for answers to questions that have already been asked in the past.

Note: This FAQ is currently being updated and will be moved to a dedicated FAQ page.

This is a work in progress and I shall regularly update this FAQ with new questions and answers from the comments section and from readers’ e-mails.


Frequently asked questions about foreclosed properties

In buying a foreclosed property, who pays for CGT, DST etc?

ANSWER: Normally the seller is the one who shoulders CGT and DST is for the account of the buyer, but they can actually pass the cost of CGT to the buyer if they agree on such terms as part of the purchase. Nevertheless, the seller is the one who files the tax return. Please see my post about CGT for more details.

Multiple housing loan are not allowed by banks right?

ANSWER: If from the same bank, I don’t think they would allow it, just like Pag-IBIG. However, if you applied for a loan with another bank, I believe they would allow it, provided your monthly amortization is below 40% your net disposable income.

Do all bank foreclosed properties undergo auctioning?

ANSWER: Not all foreclosed properties undergo auctions, some banks just make the listings of their foreclosed properties or bank acquired assets available to the public and then interested parties can submit their offers, which will be up for evaluation.

Please expound the clause “as is, where is” for foreclosed properties?

ANSWER: “as is, where is” generally means the buyer agrees to purchase the property at its present physical condition including but not limited to any problems or legal issues the property maybe involved in. Best practice is for the buyer to thoroughly inspect the property and check for any lis pendens, annotations, etc., on the TCT plus trace-back plus any arrears on taxes, dues, etc. that maybe for the account of the buyer. It would be highly recommended to check the auction guidelines as well on how the term “as is, where is” is defined by the bank conducting the auction.

What are the typical requirements to join an auction as a bidder?

ANSWER: Aside from the show money or manager’s check, the winning bidder must submit all requirements as stated in the conditions of sale. You may refer to the Conditions of Sale for the recent UCPB auction for example here.

You mentioned that foreclosed properties are can also be sold through a negotiated sale and are “negotiable”, is it for cash payments only or for financing as well?

ANSWER: Yes, these are negotiable even for financing. Actually most banks prefer financing because they can earn more due to the interest, provided you get the loan from them.

Are all properties listed by banks foreclosed?

ANSWER: Bank listings usually only include foreclosed properties as they are not really in the real estate business. Sometimes however, you will also see some bank acquired assets for sale which they got as payment through a dacion en pago or payment in kind, as a result of foreclosure proceedings.

How many percent can I “haggle” para di naman masabi ng bank na “kung gusto mo sayo na lang”

ANSWER: Before, my target was to submit offers 40% below the “after repair value” but I learned recently from a mentor that it should be at least 50%. However, you should also try to indicate valid reasons why you came up with that offer so the banks will know you are serious. If your offer is not accepted, you can always work your way up and submit another offer.

If a property is being sold with min bid price (ex RCBC Dream buy list), are they for sale through sealed biddings or through public auction?

ANSWER: For this particular listing, interested parties just have to submit their offers which shall be evaluated by the bank. Though they indicate a minimum bid price in the listing, you can still submit offers below the minimum bid price because prices are negotiable, and this is according to the RCBC Bank officers themselves, for this particular listing.

Can I ask the bank for the copy of the title?

ANSWER: Yes, just need to ask for a copy and they should give you a photocopy which you can use to check/verify at the registry or deeds by getting a certified true copy.

Whenever you win the bid, but decided not to buy anymore, what will happen?

ANSWER: If one has already won the bidding and decides to back-out, the bank will forfeit his/her Php25,000 show money.

What are your initial thoughts (without having seen the site) of large auctioned vacant lots at relatively low prices? Are these necessarily good deals? If otherwise, what are your foreseen problems/condition of this property? For instance, a 2,000 sqm property in Antipolo auctioned at about 2M, will this ever catch your interest? Thanks in advance

ANSWER: A couple of months ago, I met a fellow investor from Antipolo who has advised me to start investing there because there is still a lot of room for growth, as compared to Marikina where I am currently based. Though I disagree with him because I believe Marikina still has a lot of room for growth, both of us do agree that properties with improvements or structures like houses and apartments, etc. in Marikina and Antipolo are great investments and we shy away from land only. This is because land cannot be made profitable immediately, you can’t rent it out, you will have to develop it(have provisions for water, electricity, sewage, etc) if you want to sell it, or you may need to subdivide it to be attractive to buyers, or you may have to find a developer to partner with. Though it is promising, whatever strategy you may choose to apply, it would take months or years before you get any returns on your investment. Our family is in a similar situation like this right now in Caloocan. In contrast, if you wisely bought a property with improvements or with structures like a house or an apartment in a fairly good condition, you can rent it out immediately, or you can introduce improvements like painting, a little renovation/updating and you can sell it for significant profit. In summary, if you buy land, your money will be tied up for a long time, while with properties that have improvements, you can get your returns in a short amount of time.

I am just curious what happens to the unsold properties in the auction? Does the bank reschedule them for another auction or can buyers make an offer to the bank at the starting bid price?

ANSWER: For Unionbank, they usually set another auction for the unsold properties about a month later. For auctions conducted by CBRE, they usually come out with post auction listings where “best offers” are considered, which means interested parties can submit offers below the minimum bid price. For RCBC, they usually schedule another auction and take off 5% from the minimum bid price(MBP) for unsold properties.

What are Friction Costs?

ANSWER: The implicit and explicit costs associated with market transactions, these costs include commissions, tax implications, time value of money, etc.

Is BFS only for real estate agents or do they sell to individuals who wish to purchase a property?

ANSWER: Yes, they also sell directly to individuals. I would suggest you give them a call. Just like most banks, they probably take a long time to respond to e-mails.

Tanong ko lang po kung pwede pang mag habol yung dating may ari yung property pag fully paid na po ng buyer. And pano rin po pag dipa fully paid yung property pwede pa rin po basila mag habol?

ANSWER: If tapos na yung redemption period, wala nang habol yung dating may ari. If I’m not mistaken with the legal terms, the redemption period is one year after the execution of the foreclosure. Kahit hindi pa fully paid ang new owner, basta nag lapse na yung one year na redemption period, wala na ring habol ang previous owner. Usually, banks only sell foreclosed properties whose redemption periods have already lapsed. Although they usually inform interested parties if the redemption period has lapsed or not, it would be better to double check, just to be sure.

Do you accept apprenticeship?

ANSWER: Honestly, we have no time to mentor apprentices on a one-on-one basis at the moment.  However, I do “virtual mentoring” inside the members area.

Given the obvious necessity that research and studying the basics are prerequisites before going into this field, can someone with practically no real estate selling experience(except stubborn will and persistence) dive right into it? Of course having considered the pointers mentioned above, but is it possible to just start from nothing and work your way through? Or do I have to attend seminars or take exams first?

ANSWER: Personally, I feel you don’t need to become a licensed broker to become an investor, I just chose that path kasi nasanay nako mag pa certify, sa I.T. kasi ganun. However, attending seminars is recommended to educate yourself with the basics, much like when you attend a driving school to learn to drive. Just like in driving, the key is practice. Try to start with small deals as your practice.

What does it mean when you say “refinancing the house” – as if you invested no money at all?

ANSWER: Refinancing means you apply for a new loan to replace your existing loan, usually from another bank with better terms and after completing 3 years of payment.

I would just like to know the taxes required when purchasing foreclosed property

ANSWER: With regards to taxes, the seller(the bank) usually pays the capital gains tax (CGT) OR creditable withholding tax (CWT) depending on the bank. There are also banks that pass this on to the buyer so it would be better to confirm with the bank that has the property you are looking at. Documentary Stamps Tax (DST), transfer tax, and other taxes applicable(depending on the location of the property) are usually for the account of the buyer.

Which is better and faster, to join bidding or to submit a letter of intent (for banks with no bidding required)?

ANSWER: in a nutshell, submitting offers through a letter of intent is better because you can negotiate for the price, terms, etc., depending on the bank. In contrast, in public auctions you are obligated to follow the bid terms and all bids start at the minimum bid price (you can’t go lower), and if there are other bidders for the same property, the price can increase significantly. However, with public auctions, the whole transaction is faster. I continue looking at public auctions because I still find bargains, in fact, my most recent acquisition was through a public auction.

I would just want to ask if banks auction the same remaining properties they did in their previous auctions? I just thought how could you have inspected beforehand what they were about to auction off?

ANSWER: Unionbank and RCBC, I have observed they keep on listing properties that were not sold in previous auctions in upcoming auctions. For auctions conducted by CBRE however, they don’t include unsold properties anymore in upcoming auctions. As for inspecting the property before the auction, I just have to set an appointment with the bank officer in charge of the particular property I am interested in and they can accompany me.

Is it safe to say that as a rule, one shouldn’t get deals where stubborn illegal tenants are involved?

ANSWER:Yes, properties with illegal occupants should be avoided at least when you are just beginning to invest in real estate. Having a property with such a problem as you first deal would not be good as it could drain your resources and energy. All of my mentors have given me this sound advice which I follow as well.

Should it be the responsibility of the bank to move(eject) out the tenants?

ANSWER: For most banks, ejection of tenants would be the responsibility of the buyer. It is highly recommended to verify with the bank.

What’s TCT or CCT?

ANSWER: TCT and CCT stand for Transfer of Certificate of Title and Condominium Certificate of Title respectively. They are the legal documents that establish ownership of real estate. For more definitions of real estate acronyms I highle recommend you read my post about real estate acronyms every new real estate investor should know.

When submitting an offer, as an example of say, 40% below minimum bid price, what’s are possible valid reasons or scenarios that I have to give?

ANSWER: Possible reasons for asking for a discount are repair costs, you can even use a quotation from a contractor as reference, and you can also mention that repairs would take some time to finish before the property can be RFO and become an income generating property.

Am I required to state what my plans are for the property? Like live on the property or rent it out or tear down and build it up again?

ANSWER: I prefer to be frank with my intentions so I can bargain with banks. If I say I’m an investor, they would understand why I’m asking for a discount as I also need to make money.

You mentioned that the CGT is for the account of the seller which in this case is the bank right? Or does it apply to the buyer also?

ANSWER: CGT can also be for the account of the buyer, it’s really up to the seller to pass it on to the buyer as long as the buyer agrees, although normally, it’s for the account of the seller. Sometimes a seller will only shoulder the CGT based on the selling price and the CGT for the excess amount or difference between selling price and fair market value shall be shouldered by the buyer.

I would like to ask if buying a foreclosed property from a bank includes paying a 12%VAT?

ANSWER: Residential lots valued below PHP1,919,500.00 are VAT exempt while residential House and lots valued below PHP3,199,200.00 are also VAT exempt. Please refer to this post for more details: Threshold for VAT exemptions to be increased effective January 1, 2012

If the property is just land and for personal use, how would you know if you’re not offering too much or too little?

ANSWER: You can estimate the value of a property by checking the going rate for similar properties in the area. Even if it’s for personal use, I still think you should offer below the selling price by a least 40%, malay mo tanggapin nung bank. If not, okay lang, negotiate lang then submit ng bagong offer. Pag tinanggap agad offer mo, it means masyado kang generous.

Is the VAT already included in their asking price unless they indicate that VAT is excluded?

ANSWER: As far as I know VAT is excluded in the asking price so I suggest that you ask for a computation for taxes from the bank officer so that there will be no surprises.

Will the bank accept an offer say less than 20%,30%,40% percent from the minimum bid value? nalilito lang po ako kasi di ba minemention naman nila kung how much is the minimum bid value, right?

ANSWER: For listings that are not for public auction, while there is a minimum bid price, prices are still negotiable for most banks. The bank would still evaluate bids below the minimum bid price. What is important is that you should submit an offer as they just might accept it. If not, you can always negotiate further.

Any advice you can share in dealing with homeowner/ seller (not banks) regarding haggling the price. And, where do we start our figure to counter offer, liked you I set mine @ 2M but most of the time the asking is over and don’t want to exceed my magic #.

ANSWER: For homeowner sellers, you could first try to determine if they are highly motivated to sell. You could do this by asking why they are selling and how fast they need to sell. If they say reasons like “we are leaving the country and they need to sell in 1 month, etc…” then you could say they are highly motivated and ask if that’s their last price. By the way, I suggest you always let the seller be the first to say his/her price/terms. Also, just like what almost all books I have read on real estate suggests, the last thing you can ask would be “If I can pay in cash, how much would be the lowest you are willing to accept?”. From their answer you’d know their last price. If the price is right, and in case you don’t have enough cash, then you need to get investors to finance the deal or find other means, etc. Actually this is one topic to be discussed in a future post, please watch out for it.

Do all townhouses have CCT instead of TCT?

ANSWER: Since it is quite common nowadays for townhouse projects to be converted to condominium projects, most townhouses have CCT’s

Who owns the land if the townhouse title is a CCT?

ANSWER: As for the land, if I’m not mistaken, the land is held by the condominium corporation, which unit owners become part of, hence unit owners do become co-owners of the land.

If a townhouse only has CCT, how is the buyer protected from the owner of the land? Like what if the owner decides to put up another structure to replace the townhouse you bought?

ANSWER: Since condominium owners have the right of absolute ownership of their unit, an act like putting another structure to replace the townhouse would be in direct violation of his absolute ownership. RA 4726, otherwise known as the Condominium Act, provides adequate protection for condo unit owners and you can read more by going here.

How long will it take for an ordinary asset that is idle be considered as a capital asset and will be subjected to CGT?

ANSWER: according to RR7-2003 of the BIR, ordinary assets are automatically converted into capital assets upon showing of proof that the same have not been used in business for more than two (2) years prior to the consummation of the taxable transactions.

Hi Jay, just asking about the logistics, is this the time you go tripping, Just before the auction? How do you go about it if you’re interested on a certain property? Do you go on your own to do an ocular or do you ask someone from the bank to accompany you?

ANSWER: For me, I would get as much info from the bank through a series of questions over the phone where I ask about the monthly dues, the taxes I would be paying if I bought that property, the projected rentals, condition of the property if repairs are needed, etc. then I compute my projected ROI. If it looks good, then I schedule a tripping with someone from the bank. It would be better to do this as soon as possible so that if it really looks okay, you can get a contractor to come with you and verify that there are no hidden problems, same with checking the title of the property, before the auction.

Do banks accommodate inquiries that include, say, 5 or more properties over the phone?

ANSWER: Yes, they would be happy to accommodate inquiries for several properties, they would welcome that, just have your questions ready.

Do I still have to bring show money even if I have no intention (yet) in bidding? I figured I wanted to sit in first to see how things go.

ANSWER: As for the show money, you don’t really need to bring any if you are with someone who is bidding.If you are alone however, you would need to bring your show money. Otherwise, you won’t be allowed to attend the auction.

What is CWT?

ANSWER: CWT is stands for Creditable Withholding Tax. Read more about it here.

Can a buyer buy directly from the banks foreclosed property directly without having to bid for it? like if your an OFW?

ANSWER: It really depends on the bank, for UCPB’s last auction, they entertained knockout bids where buyers added 5% on top of the minimum bid price, for RCBC, I haven’t checked yet if they will entertain offers before the auction. For Unionbank, they won’t, I already tried.

What does it mean when the description says “w/ improvement”?

ANSWER: “w/improvement” means there is a structure on the land which could be a house, apartment, building, etc. You’d be surprised when some ads only indicate “w/improvement” but when you ask the bank, it turns out to be a multi-door apartment, etc.

I would like to know if the foreclosed properties that are listed in an auction or from banks are based on current value or the fair market value of the said property, or are the listed prices are more cheaper compared with the current value of the property when assessed?

ANSWER: The minimum bid prices are mostly based on current appraised value taking into consideration the current condition of the properties. In my opinion, a lot of these are definitely cheaper compared to the “After Repair Value” or ARV of the properties. A conservative way of establishing the ARV would be to get the current market value of very similar properties in the same location that are in Ready For Occupancy or RFO condition.

I recently read the Think Rich Pinoy book and the Think Rick Quick, one thing that I don’t really understand, how can you sell an apartment retail on a Rent to Own basis given you only have one title for the entire property? Also once they get to own the property after 15 years, the capital gains taxes and other taxes aren’t included in the cost?

ANSWER:The property is subdivided and each unit will have their own individual title. As for capital gains tax, CGT will definitely be paid but the subject on subdividing of properties and payment of CGT and other taxes were not discussed in Think Rich Pinoy and Think Rich Quick to keep it simple. If these were discussed, the books could have ended up many times thicker and a lot of readers would have been intimidated and even discouraged. I’m quite sure taxes are considered in the deals described in the books.

Got a question?

Got a question about foreclosures and real estate investing that was not listed here? Just leave a question by leaving a comment on any of my blog posts and I’ll answer it as soon as possible, I promise! By the way, due to the large volume of questions I get through comments and e-mail, I may have to split the FAQ to cover specific topics.

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About Jay Castillo
People encounter problems and make mistakes when buying foreclosed properties, and Jay wants to help people avoid those problems/ mistakes. Jay encountered a lot of those, which is why he started this blog in 2008 to serve as a guide where he shares lessons learned, and how to overcome challenges you may encounter when investing foreclosed properties in the Philippines … [Read more]
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77 thoughts on “Frequently Asked Questions (FAQ) About Foreclosed Properties”

  1. Ask ko lang po. Ano po kaya dapat gawin ng friend ko since they lived on a foreclosed unit for more than 24 years, they are the caretakers of the house before and until the house owner go abroad naging foreclosed na po yung bahay and since then sila na po talaga ang nakatira don hanggang ngayon. And now, they are planning to buy the house and lot po but they could not find the address on the SSS listing of foreclosed units. Nabenta na po ba pag wala na sa list? And if may nakabili na po, wala po bang notice si SSS sa mga kasalukuyang nakatira sa bahay para maaware sila na may nakabili na at kung may chance pa po na mabili nila yung tinititrahan nila ngayon? Sana po masagot. Salamat po.

    • Hi Alaiza, pinaka maganda ay mag-inquire directly sa SSS Acquired assets department (or sa legal department nila) para malaman ang status nung property. Sila lang po talaga ang makakaalam kung na-foreclose na ba talaga, nabenta na, etc.

  2. Hi po Sir Jay,

    My neighbor is selling the house rights and it is in preforeclosure state. Sabi nya hihintayin ung foreclosure tapos since babayaran ko ung rights, need ko tumira doon para sakin igrant ung bahay pag dumating ung mag aassess ng house. At para na din hindi na sya masali sa list ng for bidding houses. Gano po katotoo na pwede ang ganun? I’m just on the same street kaya interested ako makuha ang property, I’m also not related to the title owner po. Another question po if papayagan b ako maapplyan ang housing loan n un thru pag ibig kht co-borrower ako ng mom ko sa property namin?

    • Hi Lenn, there is no assurance that the occupant will get a chance to purchase the property. At lalu pong hindi sigurado na hindi isasama sa bidding yung property.

      Kung foreclosed napo yung property, suggestion ko dumiretso kayo sa bank.

      If hindi pa foreclosed, at pwede pang habulin, yung ang pwede, pero dapat ,alaman niyo ang status from the bank para sure na hindi pa talaga na foreclose at kung pwedeng bihin ng third party

      With regard to getting a new loan kung may existing loan na co-borrower ka na, sa tingin ko pwede, as long as kaya pa rin ng net disposable income niyo.

  3. Hi! I purchased a foreclosed property from the bank. But still occupied by the previous owner. I know that you said to avoid this scenario but we saw a great value/upside on this FCP. What will i do? FILE for writ of possesion or eviction. We are willing to wait years if it may. We are into FCP invesment. Please advise… thank you.

    • Hi Mark, I suggest to ask the bank first if they have already filed any case, most probably they already have a writ of possession or they are just waiting for it. If yes, you will just take-over the case and proceed with enforcement. Otherwise, you have to file the case yourself. I also suggest you ask the bank the steps so you will have an idea, most banks are willing to help. Good luck.

  4. Hi Sir Jay,

    If example, may property ako bought in Nego sale of PAGIBIG then after 4 months of paying, renovated, and decided to sell. How can I sell it to buyer? since ung title consolidated pa kay PAGIBIG? need ko po ba muna I close ung loan ko kay PAGIBIG para ma transfer as akin then from me to buyer naman? so parang deed of conditional sale siya? and how do you manage while having a full time work po? nag hire po kayo ng mag lalakad ng papers?


    • Hi Jose. Una, kailangan papayag ang buyer mo na hindi pa malilipat agad sa kanila yung title. Yes, pwedeng mag execute kayo ng deed of conditional sale or contract to sell. Pangalawa, kung mag lo-loan ang buyer mo, hindi yon ma-a-approve hanggang hindi nalilipat sa pangalan mo yung title (standard requirement sa mga bank loan na nakapangalan sa seller ang titulo), so pwedeng i-full-pay mo muna para makuha yung title sa Pag-IBIG. Tanong mo din kay Pag-IBIG kung papayag sila na ipa-assume yung balance mo sa buyer, hindi ko pa na-try with Pag-IBIG pero yung kabaligtaran kasi pwede (may existing loan sa bank, i-lo-loan take-out papunta sa Pag-IBIG). Yes, may tagalakad kami ng title transfer etc. 🙂

    • Hi Chris, if your capacity to pay is enough, meaning the monthly amortization will not exceed 40% of your gross monthly income, then yes. Good luck!

  5. how po kung alang na received na redempton period, salay deduction po kasi mode of pyment namin, ang company po nagbabyad sa bank. tumwag na lang po ang bank at foreclosed na daw po, without any notice.

    • Sorry to hear your situation situation Ms. Rowena. Based sa nabanggit niyo, mukhang nagpabaya yung company sa pagbabayad, try niyo muna explain sa bank yung nangyari para mabigyan kayo ng extension. Pag hindi pumayag, ipaglaban niyo na hindi niyo na avail ang right to redeem dahil hindi niyo alam, pero kailangan niyo muna ng abogado para malaman kung may habol pa. Good luck po.

  6. hello po sir Jay ask ko lang po is it possible to purchase a foreclosed property from a bank through a broker, however the broker is telling me that after full payment the redemption period will start for the previous owner so we will have to wait after a year to transfer title to our name. Is this legit? or even possible? We have checked the property and wala na occupants in fact ransacked na un property.And sabi din po ni broker the payment will be in the bank and check payment will be on banks name po.
    Appreciate your advise po kasi medyo interested kami tlaga sa property na un pero we cannot afford na ma scam.

    • Hi Marilou, I highly suggest that you request for a meeting with the bank so you can clarify everything. If the broker is legit, the meeting won’t be a problem for him/her. Hoping for a smooth transaction for you!

    • Hi Jenny, do you mean you want to rent a foreclosed property within the listings we share, instead of buying it? If yes, as far as I know, BPI and BDO are open to this, which means some of their foreclosed properties are both for sale and for lease. But you have to ask them which properties are available for lease. Thanks for dropping by.

      • Oh my bad po. Thank you for correcting me and as well as giving me a possible solution to my question. I will reply to you about your question when I can. It is something I still have to think about. Thank you once again!

      • Hello again, Id like to ask a question first on top of your last question to me. Can renting only be done for foreclosed properties?

        • HI Jenny, for BDO foreclosed properties that are condominium units, they welcome lease offers, this is mentioned in their disclaimer. I pasted a copy below for your reference:

          Lease offers welcome for all condominium units listed except those under “With Authority to Sell”. Please call for price.

          As mentioned in my earlier reply, I believe BPI has something similar in place, but you have to contact them to know which of their foreclosed properties are available for lease.

    • Hi Markie, as far as I know, bawal kung ang post ay para ibenta ang property ng broker/agent pero wala pala silang real estate brokers license. Of course, pwede mag share sa social media kung hindi naman pagbebenta yung purpose nung pag share.

  7. Hi Sir Jay, Ask ko lng po, In regards sa CGT ng condo n Pasalo. Kpg nagbbyad p lng kay Developer tpos nkahanap sya ng Buyer po. Saan po ichacharge ang CGT? Dun sa capital Exposure or sa Total Contract Price kht d p nfufully pay at d p natuturnover yung Condo sknya po.

    • Hi Joel, as usual, ang tax base ng CGT will be whichever is higher: the selling price (or total contract price), zonal value, or fair market value. May notarized deed of sale na ba?

      • For GSIS foreclosed property with occupants, and they are still paying sa GSIS (na parang they are renting it nalang), pero for bidding na, what happens if walang nagbid sa property? Can the occupant reach out to them para sila na bumili? Possible po ba ng lease to own? Or nagooffer ba si gsis na rent to own? What if may nagbid na? Sino magpapaalis and gano katagal bago mapaalis?

        • Hi Sha, I believe it is highly unlikely that illegal occupants will pay GSIS. If no one bids, I believe the GSIS will just try to sell the properties again later. I haven’t seen GSIS invite illegal occupants to buy the GSIS acquired asset they occupy, but it could be possible (Pag_IBIG has something like this in place, see FAQ # 11 on Like other banks/sellers of foreclosed properties, the winning bidder will be the one to eject the illegal occupant.

  8. Hi sir, yung property ko 1 year and 8 months ko na hindi nahulugan dahil sa pandemic nawalan ako ng work then nalaman ko na for auction na ang property ko sa july 5, 2021 may chance pa ba na maayos ko iyun kung may capacity na ako? nagulat ako na walang man dumating na letter for auction na yung house. thanks

    • Hi Mikel, sorry to hear your situation, I hope and pray maging maayos ang lahat. Usually pwede pa i-buy-back ang naforeclose pero dapat mo i-check ano yung terms and conditions. Suggestion ko makipag usap ka na directly sa kanila asap para malaman kung ano pa ang options mo.

  9. Hi Jay!

    What if we win the bidding under negotiated sale and awarded. Do we already have the right to enter the premises even if it is locked by the owner? Neighbors said though that the house has been abandoned already but I guess there are still furnitures inside.

    • Hi Christine, unfortunately no, you still have to follow the right process, which you can ask the barangay. This is to avoid any complications, I was in that situation before and the bank said we had to wait and seek assistance from the barangay.

  10. Is there a way to filter properties by type of Title? i.e. filter by CCT or TCT. As a foreigner, I am restricted in what I can and can’t buy. It is very difficult wading through all of the properties that I can’t buy to find the ones that potentially, I can 🙂

    • Hi Rob, thanks for dropping by.

      If you are searching the database and only want condos, simply use the keyword condo.

      Here’s a list of condos using “condo” as keyword:

      Ideally, there should be a dropdown or filter where I can just choose condominiums but that would require that listings should have a column that indicates the property type, and most listings I find don’t have that yet. Thankfully, most of them have the word condo or condominium in the property description so we can use keyword search for now. 🙂

      Please take note that the database currently is undergoing updates (The May 2021 Pag-IBIG properties are not yet uploaded, same with BDO, Bank of Commerce, etc.).

      • Thanks for the very prompt reply Jay 🙂
        I have looked at the listings at the link you provided (thanks again for that) and it shows Condos, House & Lot and Vacant Lot, Town Houses etc. can I assume that all these properties are on CCT and not on TCT?

        • Hi Rob, I found a problem with BDO’s listings because it turns out that all of them had the word “condominium” under the disclaimer/disclosure section (really sorry about that). This meant all properties would appear in the search, not just condos. Anyway, I have fixed this in the latest update from BDO (I changed the spelling of the word condominium in the disclaimer/disclosure), so the list will now only show condos when you search for “condo” via

  11. Thanks for the reply sir. I was not able to bid this week because of the typhoon and no work for government offices. If I bid beyond the scheduled date e.g Saturday after the scheduled bid date will they accept it especially since they were closed for 2 days?

  12. For pagibig foreclosed properties, should I bid a higher price indicated therein or should the minimum price suffice as bidding offer?

    • Hi Kat, if a property catches the eye of a lot of people (it looks nice, or the price is cheap), it would be best to raise your bid (otherwise, your bid will surely lose). However, don’t over do it. For me, I will not exceed the market value of a property whenever I submit an offer/make a bid.

  13. Hi Sir Jay,

    Thank you very much for this very helpful and educational website and article.

    I wanted to clarify your answer of offering 50% of the price to haggle for negotiated sales. I recently called a bank to inquire about a vacant lot, and the officer told me that whatever price they’ve listed, is the minimum price they’re accepting, and any offers below the price listed is rejected by their approval. The officer didn’t sound like he was just posturing either.

    Is this really the case, or is offering 50% of their listed price still a good approach? Would greatly appreciate your thoughts on this.

    Thank you and more power!

    • Hi Rowell, when a listing indicates the Minimum Bid Price, it usually means that bids cannot go lower than that. However, I checked the bidding guidelines and it is not stated that submitting a bid lower than minimum bid price is not allowed, which is strange. I suggest you call them up to clarify. I will also call them asap.

  14. Hi Mr. Jay Castillo, I am an auction bid winner of one property covered by Original Certificate of Title (OCT) but the Owner’s Duplicate Title is nowhere to find and it’s been almost eight (8) years from 2007 till today 2015 and still no one has returned my expenses. My question is: – considering that the former land owner neglected to pay back or redeem my expenses and that one (1) year prescription period has been abandoned up to present year, What is my next legal move to start owning the land?

  15. Sir, may nabili po na foreclosed property at sinisingil nila ako ng monthly dues nung tumira dun dati worth 55k dapat ko po bang bayaran yun? thanks a lot

  16. Pingback: 6 Frequently Asked Questions About Foreclosed Properties • Rock To Riches!
  17. Hi Jay, I would like to ask if the previous owner can make an offer/bid to buy back her foreclosed property from the bank. And what are the chances. Can she also start with the 40% offer?. Thanks

  18. Can I withdraw purchase of property because of bad service of the real estate company? I am working abroad and had purchase property while outside the Philippines and was planning to visit Philippines just to inspect the property I purchased. However because of bad service I got from its staffs, I am feeling very disgusted with the property imagining how I have been treated.

  19. which is better, buy property (ies) foreclosed by the bank or foreclosed by GSIS? the difference in amount is really substantial.

  20. Greetings sir Jay! These are really good questions set. I also have a question. What about rents? Will the property be considered as a capital asset that is subjet to CGT? or an ordinary asset which is subject to a 30% tax?

  21. Hi,

    Good day! Tanong ko lng po. sa isang foreclosed na property
    na binebenta ng isang banko at balak ko pong bilhin. nakasaad po sa
    listing nila na mai nag oocupy sa property pero nung na puntahan ko ng
    mga ilang beses na (weekend at weekday) wala talagang tao at nakausap ko
    ang isang kapit bahay nila an nung feb pa walang tao at nag hakot ng
    mga gamit. gs2 ko sanang tingnan ang loob ng property pero naka padlock
    po. pwde ko bng pabuksan yun kapag nakuha ko na yung property or na
    transfer na sakin from bank?

  22. hi jay,
    i am interested in buying a property from bfs which i was occupying for the last 20years.but the property owner is not me.bfs told me to settle the amount eventhough i am not the owner of the property.then after redemption period of one year and processing for about another two years, the land title will be under my this possible?thank you

  23. Guys I need answer for my research study can you pls help me.. Thank you.

    I am Roderick Morante living at Antiplolo city.

    Ms. X borrowed money to Mr. A an amount of 9M. Ms. X didn’t pay her
    obligation to Mr. A for 3 years that makes her debt to become 18M
    because of the interest of 9M occurred for 3 years. However because of
    the foreclosure of the property of Ms. X she able to auction her
    property and the highest bidder is also the creditor which is Mr. A.
    There is no payment happened for the property but obligation of Ms. X
    was been cancelled. The question is, Is Mr. A should file his interest
    income to BIR for 2013? Even though he hadn’t received any payment for
    Ms X for her debt. Can Mr A pay his tax for next year? Thank you for
    your response in advance.

    Thank you and Godbless,

    also heres my email: msg nalang po me thanks

    Roderick Morante

    • Hi Enables, you can get a copy at the Register of Deeds or RD that covers the location of the condo unit. For most RD’s, you would need a photocopy so your seller must give you this. If they are not willing to give you a copy, just let them know that you need it for due diligence purposes. Goodluck!

  24. tanong ko lang sana if ang gains ng disposal of foreclosed property ba is subject to Gross REceipts TAx on the part of the bank? kasi wala namang VAT ang income ng Bank because of RA 9337. gross receipts tax na lahat.

    ang tanong is subject to GRT ba pag ibenta ng bank ang foreclosed property nila. tnx.

  25. Hi.. I just wanna ask if you could give me a brief background about the SPV Scheme of 2002 and what do you think is the most effective strategy to dispose a foreclosed real estate (Auction, Direct or SPV)? This is for my thesis study. Thanks!

  26. Hi Jay:

    I bought a tax delinquent property that was not redeemed within 1 year. The city has given me the final deed but the LRA office is saying I need the original title from the previous owner or a court order terminating the previous title? Is a court order usually required to cancel the previous deed? Have you dealt with this issue before.

    Thanks for your help!

    • Hi Mark! Yes, I believe the court order is needed as the previous owner would most probably be unwilling to give you the owner’s copy of the title. A friend of mine has done this several times.

      • Thanks for the information Jay,

        When your friend went through this process did the court order take a long time and was it expensive to obtain? The courts are notoriously slow and I want to have an idea on the amount of brain damage I will endure:-) .

        Any additional information you can give me would be greatly appreciated or the name of an attorney who is experienced with this exact matter would be great.

        Thank you and I hope you have a very Merry Christmas!

  27. Hi Jay,
    I am very interested in a townhouse that is scheduled for auction in January. It has a lis pendens annotated on the title but the injunction used to append the lien is flawed. The property was part of a dacion en pago. The previous owner claims that the bank still owes him a sizable amount. His case is weak but as an injunction was filed and granted in 2003, a maintain status quo order was issued by the court. The previous owner has just touched the property recently breaking the status quo by having it renovated in preparation for rental. The bank’s intervenor is now auctioning the property and I have fallen in love with it. Though I know the risk involved, I am still willing to take it. My question really is. What are my chances to enter the property unhindered to take possession after I have paid the 20% downpayment required by the seller? I want to live in it, figuring that the price put on it is very cheap that even if I could only use the property for five years, it is worth every cent of my investment. ( the case has gone too slowly that after 7 years it is still in the RTC level). It might even take 10-20 years to culminate into a supreme court decision. In that case, the property would have paid for itself many times over. Legal entry is all I need. Please advise.

  28. Hi Jay, can I negotiate with a bank for a foreclosed property even if I don’t have a big Income Tax Return? I can afford the 10-20% down payment and the monthly amortization with only my bankbook as proof. I am involved in the family business and I get my salary from there but it’s not reflected in the ITR. Will they not entertain me? Thanks Jay.

  29. Hi! I have a 3 level condo unit which is subdivided into a studio and a 2 bedroom unit. It has only 1 CCT title. how do i subdivide the CCT incase I want to sell the studio and keep the 2 bedroom of the unit? Please advise. Thanks

  30. Hi jay! Thanks for all the info I learned tonight. This could be a start of my journey to financial freedom as you say. My questions are: What would be the guarantee/ security of your client who avail of the rent to own scheme since you dont have the title or how do they get the title after 15 yrs of paymt? How would you answer if they ask what if something happens to you? How will they get their titles from the bank?

  31. hello jay,

    im an ofw. and i want to buy a property for personal use. i found a bank foreclosed residential lot with a price of 3800 per m2 according to the bank appraiser. how would i know if this is a good deal for me? pwede ba akng magbigay ng offer ko? pano ko malaman na tama ung offer ko or d ko sila nabarat? ang bout legal terms d ko pa lam kng ano gagawin. san ako lalapit para malaman ko ang papers na kailangan. pagbank forclosed cgurado ba na malinis ung titolo or kailangan pang icheck sa registry? tnx n advance jay.

    • Hi George, a quick way to check if you are getting a good price would be to check the going rates for land very near your target property. Yes, you are always free to submit your offers if they are selling through negotiated sale. If you want you can check for the loan amount that is on the TCT. While some banks prefer to sell properties at full market value, some are willing to sell at a price that just allows them to recover the loan amount plus other foreclosure related expenses. You won’t know for sure until you submit your offer so my advice is to go ahead and submit your offer, they just might accept it. If not, you can always submit another offer. As for the requirements, the bank should provide you with a checklist. You still need to verify the authenticity of the TCT and make sure it really is clean, even if a property is from a bank. Buti na yung sigurado! Thanks for the excellent question.

  32. Hi Anonymous, the only attorney I have dealt with recently is my wife, so far everything has been okay. =)

    I suppose my advice would be to look for an attorney that specializes on real estate and already has a good track record, and actually finishes contracts quickly, etc. Maybe you can ask for sample contracts and/or cases they have already done/won. Lawyers that cater to the needs or real estate associations like REBAP and PAREB should know what they are doing, otherwise they won’t have any business coming from these associations. When it comes to cost, some would charge a percentage of a real estate transaction while others would charge a standard rate. I personally would go for the standard rates for small deals(below 2M). A rent-to-own contract would just cost Php500 to be drawn up and this might even include having it notarized. It also would not hurt if your lawyer is an expert on taxes, and BIR rulings when it comes to real estate transactions.

    One last piece of advice, if your lawyer is serving your needs well, better pay him/her well also and keep the relationship running smoothly. If however he/she is giving you problems like delays in finishing a contract, you can shop around for another one, there are a lot of excellent lawyers out there.

  33. Hi Jay, i like oyur Blog a lot! But i am also wondering if you could please offer a bit of your advise when it comes to dealing with Real Estate Attorneys when it comes to finalising all the legal paperworks in buying a property? Example.. cost, what to look for in a real estate attorney, how to talk to them etc… Thank you!


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