illustration by steph bravo
The normal course of homebuying is that you scout for choice projects in your preferred location, contact a broker, haggle for discounts and, if necessary, take up a home loan.
But it doesn’t always work that way, especially when your budget’s a little tighter than expected, and you can’t seem to find a home that will not only be suitable for your family but will also be well within your means.
There are, however, other ways to obtain your dream home without going completely broke.
Financial institutions like local banking giant Metrobank offer foreclosed properties that may land you a good deal—as long as you do a careful, thorough research on the home prospects you’re eyeing.
These properties refer to those that were foreclosed by the bank after the original owner failed to make full principal and interest payments on his or her loan as based on the contract.
Ease of availing a loan
Clearly, there are advantages to buying a foreclosed property. Foremost is the ease of availing a home loan from the bank offering the property.
Metrobank, for one, has an online listing for a broad range of properties that you can choose from. The good thing here is that these homes have already been pre-approved, which means that once you’ve chosen a property, your real estate agent can readily hook you up with the right home loan.
Apart from consulting your real estate agent, it’s always a good idea to talk to a Metrobank home loan expert who can match you up with the right housing investment.
Affordable deals
In its website, Metrobank says, “Even on a tight budget you can still get the home that you truly want. Buying foreclosed property could be a really smart move, and if you have the patience, you’ll be rewarded with a really good deal.”
Indeed, if you have the patience to sift through thousands of homes on these listings, you may likely score a fairly good deal—a home that will be less costly than those in the market.
The usual case is that banks sell these homes below their current market values. But there’s no harm in trying to haggle for even bigger discounts or better terms for the property you’re eyeing, as banks would normally want to dispose of these assets quickly.
But of course, you still have to do your research. Make sure that you personally check the physical condition of the property so you can see for yourself if the price is reasonable, and if the cost of repairs, if any, will not offset the discounts you got. Also check if there are other costs tied to buying a particular foreclosed property to ensure that you end up with the best possible deal for your future home.
Similar process
In the case of Metrobank, there is no difference in availing of a home loan to either purchase a new property from a real estate developer, or to get a foreclosed property.
The local banking giant has the same eligibility requirements and documents, and offers the same option of paying the loans anywhere between one year and 25 years, determining the interest fixing period, and choosing the loan amount, depending on the appraised value of the collateral.
As of this writing, Metrobank offers among the most competitive fixed interest rates, ranging from 7 percent (one-year fixing) to 8.5 percent (five-year fixing).
For more details on the requirements and the process of availing a home loan, you can check out Metrobank’s website at www.metrobank.com.ph, or better yet, go to the nearest branch and consult the experts to see if buying a foreclosed property is right for you.
Just always keep in mind that there are pros and cons to this option. The best way to go about this is, again, to conduct your own research, study your options, understand fully all the processes involved, and have a solid partner like Metrobank to see you through this milestone.