We spend 3 month submitting bidding requirements to get a foreclose house. We made an effort to visit its for bidding house in order to measure if the house is worth to bid.
The discussion here is buying not occupied property and not those property that has people illegally living inside. Actually during our house hunting we find good houses that are under foreclose but with improved house innovation by the original occupants. We tried to talk the occupant and ask their plan if someone win the bidding and started to ask them to leave the house. Most of our interview did not goes well. They know they did not pay and they already have planned to fight if someone ask them to leave. So it is a big no if the house is occupied
If you have budget for lawyers and time for legal battle, you may do so but in our 3 months experience, never to hassle with foreclose property with occupants. The reasons are summarized below
- we cant afford lawyers and public attorneys are not friendly
- travel to hearing expenses,
- fee for police assistant and
- PF for court sheriff. Most of all,
PAG-IBIG don’t care of the problem as long as you won the bidding.
Pros of buying house from Pag-ibig acquired asset or action – bidding. This is for un-occupied only
- You bid and able to buy it at lower price. Yes a regular house after the typhoon is 1.8M or 5000 monthly for 30 yrs like Casamira.
- It is like ready for occupancy .
- If you are lucky there are some improvement already.
Cons of buying house from Pag-ibig property (not occupied)
- House is either bare or in need of huge repair. Yes most of the un occupied need major repair specially, Pag-ibig resell the house after 10 yrs of unpaid balances. Given the situation today with economy, the cost of construction might reach as much as half million pesos including materials.
- House have balance from water, electricity and internet. Yes the VECO company will not give you power or lights if you did not pay the balance of the previous owner. Same with the water provider, they have learn how to get money from the new owner. They will not give you water as long as the balance are unpaid.
- 1 to 2 months of waiting. Since connection of water and electricity takes 2 weeks to 1 month, construction and repair will be another month so you wait until 2 months
- The worst is that, abandon Pag-ibig houses are normally unpaid local taxes from the locals resulting to huge penalty.
The Pag-ibig will not tell you this situation and they will give 5 days to 7 days to prepare your bidding. They will tell you to inspect the house but you dont have time to ask if there are balances on water, electricity, internet and taxes including subdivision fees.
