If you are looking to enter the property market and want to buy your first piece of real estate, you may want to look into foreclosures.
When someone cannot afford to make their home loan repayments, the lender is sometimes forced to take measures to recover the money. This process is referred to as a foreclosure. The property serves as collateral if the buyer has defaulted on the loan.
Foreclosures in Ghana are common and happen regularly with a number of financial institutions. Banks can choose to auction the property themselves or in some cases, they can appoint an auctioneer. They can also conduct sales biddings where interested parties can send their bids to the financial institution.
Foreclosure listings are advertised in the newspaper or are sold through an auctioneer. It is important that the borrower whose property is auctioned not to be disadvantaged, so the auctioneer has to make sure that an evaluation report is done and the value becomes the minimum acceptable price. Anything above that price can be quoted.
While it is advisable to buy houses on foreclosure, keep in mind that buyers have a short time-frame to gather all the funds needed to make a purchase. Another obstacle that pops up is that some banks are often reluctant to grant mortgages for home foreclosures. You must ensure that you have either cash or quick financing available.
Before you decide to embark on the process of buying a foreclosed property, you need to get the documents from the auctioneer to make sure the auctioneer has the legal rights to sell the property. After, they have to show that the documents prove that this property was bought, but the owner has defaulted all necessary steps to recover the funds, which has been impossible.
It is important to ensure the foreclosure process has been followed through before the property is auctioned because if the owner can go to court to prove that they were disadvantaged in the process, the law can rule in their favour.
Mobus Properties Ltd. is a privately-held Ghanaian property investment, development and management company focusing on commercial and residential property development. The company has property portfolios in Ghana and Nigeria.
Want to live in the city? Try one of our upmarket, world-class developments.