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Recently, a lot people have been asking about foreclosed properties from residential and commercial properties to various vehicles to industrial machinery and others that these bank would like to disposed of and at the same time lessen the inventories of their non-performing assets (NPAs) or ROPA (Real and Other Property Assets jargon used by banks) into profit and lesser headaches for these custodians and the third party seller or brokers. There are tremendous inventories of these non-performing assets in major banks that surely the asset managers would want to make it go away in a jiffy.
How are these foreclosed properties get handed to the banks or lending institution?
In the Philippines. foreclosed properties are either acquired through nonpayment of the lender-client who was unable able to finance the acquired property due to default making the property into distress with the bank taking over the risk on the property and making the individual lose the property. A lot of real estate investors prefer distress properties and make a profit from it.
How To Acquire A Foreclosed Real Estate Properties?
There are lots of way to acquire foreclosed properties. One of which through auction. An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.
There are several variations on the basic auction form, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder(s) and sale price(s). Participants in an auction may or may not know the identities or actions of other participants. Depending on the auction, bidders may participate in person or remotely through a variety of means, including telephone and the internet. The seller usually pays a commission to the auctioneer or auction company based on a percentage of the final sale price.
Buy, Fix and Sell For A Profit
The strategy of most real estate investors acquiring the property at low price, repair the house or condo unit by making renovations and later selling it a high margin or price or use it as a rental property or for what other purposes they deemed it is useful. As a major rule, property's depend on location as the number one factor in finding the property.
Need To Buy A Foreclosed Properties or Sell Your Golden Egg?
Need help in marketing your properties to the public? A real estate investor should hire a licensed real estate broker(s) or accredited salesperson. These professionals have a wide array of networks and contacts or list of clients who are looking for a property to buy.
C. F. Baluyut Realty have more than a decade of experience in helping reach a client's goal. They can guide and help you on the process of buying properties for one's need and selling one's properties for personal gain with our very professional services all throughout.
About the Writer
CRB Benedict Baluyut is a professional real estate broker, real estate appraiser and associate of C. F. Baluyut Realty. He is currently the Vice President for External Affairs, Real Estate Brokers Association of the Philippines, Inc. (REBAP) - Pampanga Chapter. You can get in touch with him at https://www.cfbaluyutrealty.com.
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