In case homebuyers are wondering where they can get affordable houses, cities in Bulacan, Laguna, and Rizal right on the fringes of Metro Manila offer them the most viable options, as these areas are teeming with foreclosed properties, according to data from global real estate website Lamudi Philippines.
In its latest data analysis, Lamudi found that the cities of San Jose Del Monte (Bulacan), Dasmariñas (Cavite), San Mateo (Rizal), Bacoor (Cavite), and Santa Rosa (Laguna) have the most number of listed foreclosed houses in the website.
These locations are followed by Antipolo (Rizal), Imus (Cavite), Caloocan (Metro Manila), San Pedro (Laguna), and Quezon City (Metro Manila). Caloocan and Quezon City are the lone Metro Manila cities that made it the top 10. Together, these cities comprise 51 percent of all foreclosed houses listed on the Lamudi website.
In terms of prices, San Jose Del Monte offers the most affordable foreclosed houses among the top 10 cities. Foreclosed houses in this city in Bulacan Province average Php336,000. Quezon City, meanwhile, offer much pricier foreclosed houses, averaging Php5.33 million.
In terms of onsite search volume, Quezon City is the most-searched city for foreclosed properties in the Lamudi website from January 1 to March 31, 2016.
More than 6 percent of all searches for foreclosed properties conducted during the period involved Metro Manila’s largest city. Quezon City is followed by the cities of Las Piñas, Parañaque, and San Jose del Monte, the provinces of Benguet and Laguna, and then by Caloocan. Together, these areas captured almost 20 percent of total search volume for foreclosed properties in the Lamudi website.
Filipinos’ interest for foreclosed properties has also been increasing every quarter, at least according to Lamudi data.
The property website showed that search volume for foreclosed properties increased 5 percent from Q2 2015 to Q3 2015; 9 percent from Q3 2015 to Q4 2015; and a remarkable 75 percent from Q4 2015 to Q1 2016.
On the other hand, the proportion of searches attributed to foreclosed properties in relation to total searches made has also been increasing every quarter: 1.42 percent in Q2 2015; 1.68 percent in Q3 2015; 2.15 percent in Q4 2015; and 2.34 percent in Q1 2016.
Filipinos Still Uneducated About Foreclosures
However, foreclosed properties may not be on most people’s game plan when buying their first property. Perhaps because of pity or because they feel they are taking advantage of others’ misfortune, Filipino homebuyers may hesitate to buy foreclosed houses.
However, there are several advantages of buying foreclosed homes, one is being able to use regular housing loan or mortgage financing to acquire the property. In addition, the property will also be sold for the outstanding mortgage balance owed by the previous owner to the foreclosing mortgage holder. This means the property will be sold at a much lower price. Most importantly, as properties that became foreclosed are under the name of the foreclosing bank or mortgage holder, the titles will be clear, eliminating the risk for homebuyers to get scammed.
Would-be buyers of foreclosed properties, however, are advised strongly to buy only from banks, their accredited brokers or brokerages, or government-owned institutions such as the Pag-IBIG Fund or the National Home Mortgage Finance Corporation to minimize the risk of ending up with a problematic property.
But Filipinos’ attitude toward foreclosures looks to be changing gradually, as shown by Lamudi’s data. As more and more banks and financial institutions are exploring online tools to market these non-performing assets, Filipinos will find it easier to discover and inquire about foreclosed properties. At least three major banks are now working with Lamudi to effectively market their acquired assets. As of September 2016, there are almost 15,000 foreclosed properties listed on Lamudi, ranging from houses and condos to parking spaces, residential lots, and even entire commercial buildings.