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Finally, Buena Mano Property Sales and Leases has released their Q3-2009 catalogues of bank foreclosed homes. However, we were only able to get a copy of the Yellow Tag listing of bank foreclosed homes for Metro Manila. My wife and I already visited a number of branches of BPI in Makati and Libis but we only found the Yellow Tag listings available in their main office in Makati. Either they only printed a few copies of the catalogues or there was a high demand for the Green Tag and Red Tag listings and they ran out of copies.

The Yellow Tag listing we got already includes both  Super Value and Prime bank foreclosed properties for sale. Foreclosed properties are classified as Super Value properties if they are priced below Php10M and those priced Php10M and above are classified as Prime foreclosed properties. All of these properties are for negotiated sale.

Just what are “Yellow Tag” Properties?

yellow-tag-q3-2009-thumbnail

Yellow Tag properties are foreclosed real estate properties with any of the following “special concerns”:

  1. Titles are already under the name of the bank which foreclosed the property or properties but they are still occupied by the former owners, tenants, or by illegal occupants;
  2. There are property documents (ex. Tax Declaration) that still need to be updated

Personally I would rather avoid properties that still have occupants, I suggest you do the same. However, I would consider those that only need updating of property documents as these often just need a few more months to get completed. provided that the numbers make sense.

The Buena Mano Yellow Tag listings of bank foreclosed homes for Q3-2009 includes foreclosed properties in the following locations:

  • Bulacan
  • Caloocan
  • Cavite
  • Laguna
  • Las Pinas
  • Makati
  • Malabon
  • Mandaluyong
  • Manila
  • Marikina
  • Navotas
  • Palawan
  • Paranaque
  • Pasay
  • Quezon City
  • Rizal
  • Valenzuela

For more details and other inquiries, you may visit their main office in Makati:

  • Ground floor, The Enterprise Center Tower 2, Paseo De Roxas cor. Dela Rosa St., Makati City, Philippines

Or you may contact Property Sales and Leases through the following:

For  specific areas, you may call the sales officer in charge of that area:

  • Bulacan / Calocan / Makati / Malabon / Manila / Navotas / Palawan / Valenzuela
    • Lester “Teng” Apolonio: 8455229
  • Mandaluyong / Marikina / Pasig Quezon City/ Rizal / San Juan
    • Alfredo “Bu” C. Carlos: 8455805
  • Batangas / Cavite / Laguna / Las Pinas / Muntinlupa / Paranaque / Pasay / Pateros / Taguig
    • Agapito “Pete F. Marasigan: 8455815

The fine print:

  • All properties for sale are on an “as-is, where-is” and “first-come, first-served” basis
  • Properties maybe withdrawn without prior notice
  • Prices are subject to change without prior notice
  • All offers are subject to management’s approval
  • Please confirm entries by calling their hotlines or send an email to askpms@gmail.com

As you can see on the fine print above, it states that all offers are subject to management’s approval. This means that prices are negotiable.

Interested in any of the foreclosed properties?

1. For Yellow Tag properties, special handling is required. Before you visit your chosen property, kindly call the sales officer in charge of the area as listed above and inside the catalogue. You may visit your chosen property any day of the week, any time of the day. Most properties have caretakers who can assist you during your visit (except for condos and vacant subdivision lots which are under the watch of the respective condo/subdivision homeowners association). For condos, you have to coordinate with the sales officers on where to get the keys.

Just a word of advice… Since the properties sell fast, you are advised to call first before your scheduled visit, just to check if the property you are interested in is still available. (Remember my post about how I failed to grab my first investment property? That property was also from a Buena Mano listing!) By calling, you also get to verify the best way to get to the property.

2. If you like the property(and it passed your due diligence), you may submit a Letter Of Intent by accomplishing an Offer To Purchase form which should contain the following information:

a. Address/Description of the property you are planning to buy
b. How much you are offering to buy the property for (Yes, prices are negotiable!)
c. How you intend to pay the purchase price (Cash? Loan from your bank? Others?)
d. Your name and address, contact numbers, and signature
e. Other pertinent information required

3. You will be informed if your offer has been accepted. A Letter Advice containing the terms and conditions of the sale (with the following information) shall be sent to you:

a. Selling Price
b. Property Address/Description
c. Schedule of payment/s to complete the purchase price

4. After you sign the Letter Advice which signifies that you agree to the terms and conditions of the sale, you must send back a copy for their file and serve as their basis to reserve the property for you until you pay the minimum 10% earnest money on or before the date stated therein. If the earnest money is not paid on the due date, the property will be offered to other interested buyers.

What are the related taxes and fees that go with a real estate transaction?

For the account of the Seller:

  • Capital Gains Tax (CGT) which is 6% of Selling Price(SP) or Zonal Value (ZV) or Fair Market Value (FMV) whichever is higher
  • Business Tax – if applicable

For the account of the Buyer Documentary Stamp Tax which is 1.5% of SP or ZV whichever is higher

  • Transfer Tax – rate depends on the location of the property (ranging from 0.25% to 0.75% of SP or ZV whichever is higher)
  • Registration Fee – graduated rate based on SP (ex. Php 5,646 for SP of Php1M)
  • Realty Taxes – for the remaining months of the year based on date of full payment

*Note: The Government may impose other taxes and fees that are not covered by the above schedule

What are the payment modes available for the purchase of a foreclosed property?

  • Cash
  • Deferred Payment Plan (Case-to-Case)
  • Bank Financing
    • Through BPI, BPI Family Savings Bank or any other major domestic banks
    • Terms are subject to separate credit approval by the lending bank
    • If you get a loan from BPI Family Savings Bank, the following are its current loan parameters (subject to change without prior notice)
      • Loanable amount is up to 75% of the appraised value of the property
      • Payment term up to a maximum of 12 years
      • Interest at lower than current market rates
      • The chart below shows how affordable the monthly amortization is:

SAMPLE COMPUTATION:

Appraised Value of property Php 1M
Less: 30% Borrower’s Equity Php 300,000
Loanable amount: 70% Php 700,000
Multiply by 0.0116637*
Monthly Amortization Php 8,164.59 per month**
* Amortization factor for 9.25% p.a. interest rate fixed for the first year with a loan term of 12 years
** Good for the first 12 months of your loan; succeeding month’s amortization to be computed based on prevailing rate at the end of the 12th month.

Buyers may opt to set with the Bank a longer rate-fixing period to avoid yearly re-pricing and abrupt rate fluctuations cause by changes in economic conditions. (I highly recommend this!)

lnterested in any of the foreclosed properlies?
1. For Yellow Tag properties, special handling is required. Before you visit your chosen property, kindly call the sales Officer in charge of the area as listed above and inside the catalogue. You may visit your chosen property any day of the week, any time of the day. Most properties have caretakers who can assit you during your visit(except for condos and vacant subdivision lots which are under the watch of the respective condo/subdivision homeowners association). For condos, you have to coordinate with the sales officers on where to get the keys.
Just a word of advice… Since the properties sell fast, you are advised to call first before your scheduled visit, just to check if the property you are interested in is still available. (Remember my post about how I failed to grab my first investment property? The property I referred to there was also from a Buena Mano listing!) By calling, you also get to verify the best way to get to the property.
2. If you like the property, you may submit a Letter Of Intent by accomplishing an Offer To Purchase form which should contain the following information:
a. Address/Description of the property you are planning to buy
b. How much you are offering to buy the property for (Yes, prices are negotiable!)
c. How do you intend to pay the purchase price (Cash? Loan from your bank? Others?)
d. Your name and address, contact numbers, and signature
e. Other pertinent information required
3. You will be informed if your offer has been accepted. A Letter Advice containing the terms and conditions of the sale (with the following information) shall be sent to you:
a. Selling Price
b. Property Address/Description
c. Schedule of payment/s to complete the purchase price
4. After you sign the Letter Advice which signifies that you agree to the terms and conditions of the sle, you must send back a copy for their file and serve as their basis to reserve the property for you until you pay the minimum 10% earnest money on or before the date stated therein. If the earnest money is not paid on the due date, the property will be offerred to other interested buyers.
What are the related taxes and fees that go with a real estate transaction?
For the account of the Seller:
Capital Gains Tax (CGT) which is 6% of Selling Price(SP) or Zonal Value (ZV) or Fair Market Value (FMV) whichever is higher
Business Tax – if applicable
For the account of the Buyer
Documentary Stamp Tax which is 1.5% of SP or ZV whichever is higher
Transfer Tax – rate depends on the location of the property (ranging from 0.25% to 0.75% of SP or ZV whichever is higher)
Registration Fee – graduated rate based on SP (ex. Php 5,646 for SP of Php1M)
Realty Taxes – for the remaining months of the year based on date of full payment
*Note: Government may impose other taxes and fees that are not covered by the above schedule
What are the payment modes available for the purchase of a foreclosed property?
Cash
Deferred Payment Plan (Case-toCase)
Bank Financing
Through BPI, BPI Family Savings Bank or any other major domestic bank
Terms are subject to separate credit approval by the lending bank
If you get a loan from BPI Family Savings Bank, the following are its current loan parameters (subject to change without prior notice)
Loanable amount is up to 75% of the appraised value of the property
Payment term up to a maximum of 12 years
Interest at lower than current market rates
See below sample computation:
Appraised Value of property: Php 1M
Less: 30% Borrower’s Equity: Php 300,000
Lonable amount: 70%            Php 700,000
Multiply by 0.0116637*
* Amortization factor for 9.25% p.a. interest rate fixed for the first year with a loan term of 12 years
Monthly Amortization Php 8,164.59 per month**
** Good for the first 12 months of your loan; succeeding month’s amortization to be computed based on prevailing rate at the end of the 12th month.
Buyers may opt to set with the Bank a longer rate-fixing period to avoid yearly re-preicing and abrupt rate fluctuations cause dby changes in economic conditions. (I highly recommend this!)

Click here to download the Buena Mano Super Value Yellow Tag GMMA Catalogue of bank foreclosed homes Q3-2009

Click here to download the Buena Mano Prime Yellow Tag GMMA Catalogue of bank foreclosed homes Q3-2009

Click here to download the Offer To Purchase form

Full Disclosure: How I wish interested buyers can already put my name as the referrer in the Offer To Purchase form but I have not yet received confirmation that my accreditation as a licensed broker has been approved. Once I am accredited I may or may not be able to post properties from the Buena Mano listings here depending on the guidelines that are to be issued to accredited licensed brokers.

Happy Hunting!

—–

To our financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Social Network: http://foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor@gmail.com

Text by Jay Castillo. Copyright © 2009 All rights reserved.

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