For people who are looking to finally cease renting and become homeowners, one of the things that could have been hindering them all this time is working with a strict budget, which limits their options. That’s not to say they can never buy a home with limited financing; they just need to slightly deviate from their original plan. They can choose a pre-existing home instead of a newly constructed one. Or, they can a make a few sacrifices, like opting for a smaller home and in a different location from their first choice. Of course, they can always go for a third option: buying a foreclosed property.
Foreclosures are properties that have been seized by the lending institution if the homeowner is no longer capable of paying the amortization. The reason why these properties are known to sell for prices that are below market value is that at this point, the lender is looking to cover the balance of the mortgage, which is fortunate for buyers who want to get a home on the cheap.
On the other hand, there is also a stigma attached to foreclosed properties, in that they are known to have sustained damage over years of use. This is because properties that have been foreclosed are sold “as-is,” meaning no repairs have been done prior to the sale. Still, this doesn’t mean a foreclosure buyer is doomed to purchase a property that will be more problematic than advantageous. Lamudi Philippines has put together a few tips on zeroing in on a foreclosed property that will actually be worth it in the long run.
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