As banks are foreclosing hundreds of thousands of properties across the country, the question keeps arising, “Can banks make profits on foreclosed properties?” The simple answer is yes, but it does take some special circumstances for it to happen. Foreclosed homes can vary from a regular home purchase, and you will want to research all loan products available for this type of transaction, including traditional loan products or an FHA 203(k) Renovation Loan (a mortgage that provides the purchase price plus funds for renovation by financing the as improved” value of the home).
Lamudi features just about every type and price of foreclosed properties for sale in the Philippines, from a 244 square meter foreclosed farm lot in Bulacan listed for as low as Php26,000 to a 2.44-hectare lot in Tagatay good for either residential, commercial, or industrial use and priced at around Php6.1 billion.
Lenders don’t want to spend any more than they have to on these properties so you want to make sure you price your services comparable with the going market rates (but at the same time, priced so that you still make a great profit and don’t leave any money on the table).
The best foreclosure websites will offer not only pictures of listings, they will also give you maps, addresses, and detailed descriptions of layouts and lots sizes, contact info and neighborhood descriptions- everything you need to line up appointments with real estate agents for listings that truly meet your needs-less hassles and wasted time for both parties.
Other possible customers include wholesale property investors (groups of investors that purchase foreclosed homes at the auctions and then sell them to smaller investors at a wholesale price), investors, landlords, property management companies, Realtors and so on.