What is the difference between bank auctions and bank foreclosures?

Bank foreclosures are properties that are in foreclosure by the bank due to non-payment of a mortgage loan. These properties are sold at a judicial auction and the sale price is usually lower than the market value. The problem of buying under this modality is that you must buy the properties without being able to make a visit or review since they are still in possession of a third party, besides for this you must have all the money, since it cannot be acquired with financing. Finally, even if you win the auction, it may happen that the judge, even after having deposited 100% of the amount of the property, declares the process null and void and your money will be returned months later without any interest.

On the other hand, bank foreclosed properties are properties that the bank has acquired after the owner was unable to pay his mortgage. These properties are sold directly by the bank and also usually have a lower price than the market value, having as an advantage that you can visit and review them prior to purchase. Also, another great advantage is that these properties can be financed and usually with preferential banking conditions, such as: no appraisal fee, no disbursement commission and better rates.

Why is it better to buy foreclosed assets from banks than bank auctions?

Although bank auctions may seem like a good opportunity to buy a property at a lower price, they can also be riskier. At a public auction, there may be other buyers interested in the same property, which may increase the sale price. In addition, the property may have legal or structural problems that are not disclosed at the auction. On the other hand, bank foreclosed properties are sold directly by the bank, which means there is no competition from other buyers and the buying process is more transparent. In addition, the bank usually does an appraisal of the property before putting it up for sale, which reduces the risk of encountering legal or structural problems after the purchase.

From which banks can you find foreclosed assets or bank auctions on our website?

On our website you can find foreclosed properties from the main private banks in Costa Rica, such as BAC, Scotiabank, Davivienda, Banco General, Promerica, Lafise, BCT among others.
In the past our office worked with state banks such as Banco Nacional, Banco Popular and Banco de Costa Rica. Check our options and find the property you are looking for at a discounted price. We have houses, apartments and lots in the 4 provinces of the GAM - Alajuela, San José, Heredia and Cartago.

Care to be taken when buying foreclosed assets from banks

When buying bank repossessions in Costa Rica, it is important to take into account some precautions to avoid future problems. First, when you buy a bank auction, remember that you are buying the property with all the problems or debts it has. These can be debts of condominium fees, municipal tax debts, among others. This does not happen when you buy foreclosed properties from banks, since in these properties the banks make sure to deliver the properties with all these factors up to date.