Possibile To Find A House For Around 15000 Usd In The Provinces Around Cebu

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Dave Hounddriver
Posted
Posted (edited)
Once you hold a mortgage on the land
will a bank will give the mortgage?

Its very, very practical. Many do it. I'm surprised Jim just thought of it today. In no way does it involve a bank.

In practice you find someone who wants money for their land. You offer to loan them cash (your own money . . no banks involved) with no payments required for 25 years (or pick a number) on the condition that you get full use of the land for the entire time they owe you the money AND when they pay you back they must also pay you for any improvements you have made to the land AND they cannot sell it or otherwise mortgage it unless they FIRST pay you off, That means for them to take the property back they must give you your money back, plus whatever you spent to build house, fence, trees etc, plus a small amount of interest.

They are never going to pay you back and its the closest you can get to actually owning the land and yes, it legal, been there done that, got the signed legal document to prove it. Unfortunately, in my case, the DENR will not let my build a permanent structure on the land but wife's brother is going to live there (in a 'non permanent' bamboo house) and the reason WE did it was to farm the coconuts and rice.

Edited by Dave Hounddriver
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Jim Sibbick
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Here is something I only just thought of today. Not sure if it is possible. Take out a private mortgage on the land. With you as the mortgagee and the amount of the mortgage to be the value of the land. Once you hold a mortgage on the land, no action will be possible without your approval

Good idea in theory but will a bank will give the mortgage? Very, very unlikely.

You mis understand.

I am not talking about borrowing money from a bank.

I am talking about a private mortgage between two parties. The foreigner is the mortgagee. Google mortgagee if you need a definition.

The owners sign a mortgage document showing that they owe you the value of the land. In the mortgage condititions, have no regular repayments. Just show the debt repayable on the sale of the land.

Where the idea falls down is, even though there is no possibility of default, as there are no repayments, the law might not allow a foreigner to hold a mortgage because if there is a default, the mortgagee has the possibility of taking possession of the land.

So the idea needs to be put in front of an attorney expert in land title law.

Edited by Jim Sibbick
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Curley
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Apologies, i didn't realise you meant a private mortgage. Isn't there something in Philippines law that states that if the owner of the land dies then any lease or mortgage arrangements can be rescinded?

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Beachboy
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There is no absolute guarantee but

Thanks for the info, Jim, and the correction on the lease law. I've made a copy of your ideas for my notes ... but for someone such as myself who hates lawyers and banks I'm more inclined to keep my assets liquid.

Speaking of liquid assets is San Miquel any good (just kidding! I know it's way off topic!)

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i am bob
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Though doing the mortgage is a good idea for some, I would recommend that, unless you know the neighbours and the neighbourhood very well, renting is probably the better way to go. Who knows? You may end up married and need to move to keep the new boss happy - or to evade all the ATM relatives... Or the Karaoke King with a 50 million watt amplifier may move in beside your bedroom window. Now if you are living quite rural and don't have to worry about these other things...

:attention:

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Jim Sibbick
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Apologies, i didn't realise you meant a private mortgage. Isn't there something in Philippines law that states that if the owner of the land dies then any lease or mortgage arrangements can be rescinded?

Definitely.

If a mortgagor dies, the debt becomes due and payable. If there is no money to pay, the property can be sold at a mortgagee's auction.

So, a private mortgage is still a safe way, if legal.

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Jim Sibbick
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Though doing the mortgage is a good idea for some, I would recommend that, unless you know the neighbours and the neighbourhood very well, renting is probably the better way to go. Who knows? You may end up married and need to move to keep the new boss happy - or to evade all the ATM relatives... Or the Karaoke King with a 50 million watt amplifier may move in beside your bedroom window. Now if you are living quite rural and don't have to worry about these other things...

:attention:

I agree.

I have no personal plans to buy anything. I am happy to rent and move on when I am no longer happy.

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Dave Hounddriver
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So, a private mortgage is still a safe way, if legal.

I have already stated it is legal. But people are still skeptical. Ask Atty Sandy Sabitsana, Jim. I am sure you know him. He is the one who signed off on our deal and gave written confirmation it was legal. Ask him.

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  • 1 month later...
Thomas
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Posted
So, a private mortgage is still a safe way, if legal.

I have already stated it is legal. But people are still skeptical. Ask Atty Sandy Sabitsana, Jim. I am sure you know him. He is the one who signed off on our deal and gave written confirmation it was legal. Ask him.

(A foreigner isn't allowed to give loan as a business, but I suppose just having one as in your solution isn't counted as a business.)

An other risk though, I believe, if not compleete your solution somehow.

If the land owner PAY BACK, then the kano has no users right left. Not fun if have built a nice house there :boohoo: :)

Can it be combined with a long time lease?

--

Concerning death of land owner : If it's a lease it's supposed to follow the LAND undepending of who is the owner.

--

>Topic starter.

I suppose you can find a nice small house for such money, even kano standard, if enough away from Cebu city.

Just told for comparing with what asked for:

(Wrong island, but in province at Bohol I know a kano house for sale for 1 mill.

(If I don't mix it up with an other, which cost 1.4 mill:

Kano standard. Nicer look than I need myself :) 3 bedrooms, 2 baths and toilets. Indoor kitchen. Including some land, so need to be splited if a kano buy the house. Water tank to get water pressure. I believe it's own well.)

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Fred & Mimi
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Posted (edited)

I heard of a house and land in Tarlac City Luzon for just over $7,000 US. Of course, you will have to be married to make the most of these bargains. Its not Cebu though but if they exist there they should be all over RP.

Edited by Kuya Fred
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