Question:

I am interested on participating in a Bank auction. I saw the property and it was good, however, the catch is that the title is still in the previous owner's name and is currently in the BIR office for consolidation process.

The account officer told me that the process would take 2-3 months before the title is finally consolidated into the bank's name.
I also asked the account officer if they have receipts like CWT, DST and Real estate tax; he said "Yes" and they can show it to me on the day of the auction.

They also gave me the Certificate of sale between the bank and the former owner, I haven't verified this yet at BIR. They will also shoulder all expenses for the consolidation process.

Do you think it is still worth pursuing? I could wait til the title is consolidated but there is a chance that this property will be bought because of its attractive price.


Eden says:

As a general rule, for starters, veer away from properties without a clean title.
It will cause more headache than the profits it may generate. =)

Question:

If I buy a property through bank loan 15 years monthly amortization then I want to wholesale the property to a buyer.

What are the things I need to process?

Should I pay the bank the whole price for me to get the title and transfer the title to the wholesale buyer?

Eden says:

First, get to know the rules of the bank.
Every bank has its own personality. Each one has its own requirements.

Assuming you have already passed the stringent loan requirements (or automatically qualify for the loan in case of winning auctions), you may ask the bank the following:

1. Can I assign the property to another person? Some banks doesn't allow this and will require double transfer - meaning, you have to pay for the taxes first before the title is transferred to the buyer. If so, what is the process of assigning the property? Another trick is putting your name AND AN ASSIGNEE during the contract signing. Again, some banks doesn't allow this.

2. In case your buyer wants to pay cash. Ask the bank, what are the expenses/charges that I have to pay in pre-terminating a loan?

3. In case the bank allows transfers, what do I have to pay for the transfer?


LESSON: Never be afraid to ask questions to the bank. It is their job to keep you informed. You'd also be surprised how helpful they are :-)