Buying foreclosed homes? Choose carefully.

This article surfaced in 2008 from the ABS-CBN website:

Whether it’s investors looking to buy cheap and sell for profit, or families who want to bring their renting days to an end, foreclosed homes have a sure market.

In the last couple of years, foreclosed properties being sold by banks have been gaining popularity on the idea that they fit more easily into the budget than brand new homes.

Banks regularly hold auctions to bid out these second- or, sometimes, third-hand homes to prospective buyers. But they also book effortless sales just from taking dozens of calls a day from clients.

The secret is to give people incentives to entice them to take a risk on a foreclosed house, Janette Abad Santos, assistant vice president of Philippine National Bank’s (PNB) Asset Management Group, told in an interview.

Foreclosed homes could sell for a fraction of their worth in the market, and may seem like a steal. However, if one’s not careful in choosing, these kinds of homes could also harbor unpleasant surprises and could run into a lot of money for those who don’t have much of it to start with.

Read the rest of the Article Buying foreclosed homes? Choose carefully.

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