How to invest in properties awarded by banks?

What is a foreclosed property?

They are the houses, lands, commercial and industrial lots that the banks and companies recovering of portfolio possess and are properties like any other, with the exception that these are promoted for their sale to the public either directly in writing or by means of the cession of rights.

Considered as an excellent purchase opportunity for some, the adjudicated properties represent another purchase option for those who seek to have their own patrimony. Here I will tell you what they are and what the model consists of.

Origin of bank properties or foreclosed properties

Banking: It is generated in the moment in which the individual acquires by means of a mortgage credit previously authorized, and independently of the consequences generated of the breach on the part of the accredited one, the property is a banking property by its simple contract of opening of mortgage credit.

Bank auction: There is really not only an abbreviation of the concept of auction of property of overdue portfolios of banks. These are sold properties derived from credit portfolios granted by financial institutions.

People believe that foreclosed or auctioned properties, as many know them, are for investors and people with a lot of purchasing power. Not so, they are available to all people who are subject to credit or who have the cash for their purchase.

The origin is when a person, who bought a house through a commercial bank, financial, municipal or rural, stopped paying his monthly payment in several months. At that time the financial institution legally proceeds to a lawsuit to take possession of the property, and in turn, return it to the market at a much lower cost.

The financial institution takes legal possession of the property in question and sells it at the price of recovery of the debt.

For example, if the person owed S/ 500,000 soles and the house costs 1 million soles, the bank would sell it to S/ 500,000 soles to recover the debt owed to them.

The real estate adjudicated are an excellent option to be able to acquire an investment, a second house, or even the first house.

How to start?

The real estate can be acquired in the different stages of the process of adjudication, although the ideal is when the institution already has finished the legal process and has total possession of the same one.

However, there are also the acquisition stages where the property can be found at the beginning of the process. Here the bank, institution or law firm will indicate how long it will take, the total cost and the processes involved.

Keep in mind that some of these properties may not be available immediately, so you should take the proper precautions of time if you want to exercise a mortgage or simply want to invest immediately.

Attention here! In many adjudicated properties a credit can be used, only it is necessary to be informed and to know with who, when, how and where.

The point is to lose the fear of buying a foreclosed real estate, approaching the right financial institution and becoming informed. Hence, making an informed and educated decision as to whether it is convenient or counterproductive.

It is undeniable that it can become an excellent option and/or investment, even when it is the first home. I insist. It is necessary to be informed before making the decision…. You have the information, Use it!

The values expressed by the issues called Reference values were determined based on the amount of credits originally granted by the banks to the debtors, and as their name says they are exclusively Reference values, in some cases the expenses of lawyers and processes have been added in order to regularize them.

Also in some cases there is an appraisal value per year, which may give you an idea of the commercial value of the property in commercial form, I invite you to consider the lowest value to start your selections.

The main objective of financial institutions and portfolio operators is the expeditious recovery of funds.

If you wish, you can count on the advice of a trusted lawyer who will help you to examine the documents that will be sent to you once you have sent a letter of intent in which you express your interest in buying a certain property.

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