There are steps to be done in financing while the buyer is abroad. The first step is
1) Let him/her reserve the unit so that you will have something to work on at the start. The reservation will give you an assurance that the buyer is really interested and not just seeking for information.
2) You also have to get the developer to cooperate with the bank's time table of processing. For example, if the bank requires 60 to 90 days to process, you need to inform the developer regarding this. But normally, developers require down payment of 30% before it can endorse financing to any bank and before the account is actually transferred, they also require monthly payment to start 30 days after reservation making the contract in-house for the time being until the loan is approved and they receive the loan release.
3) Choose a bank who accepts to process loan even if the applicant is abroad. One of these is China Bank, Banilad Branch. For initial contacts, you can let the buyer call the manager of China Bank and ideally, you are there also while they talked with each other over the phone. The China Bank manager welcomes calls from abroad from people applying for loan while the real estate collateral is here.
4) After the initial talks, you can gather the bank's requirements which the applicant can accomplish and send these documents via email attachments if ever the bank approves that the processing can start with just these email attachments subject to submission of original documents as requirements.
5) Ask the bank if they are willing to send the original contract and Client information sheet to the buyer abroad. If they are willing, then you can send these for client's signatures, and advise to mail back for notarization and completion of the contract. But if the bank is not willing to send the original, either the applicant has to come over just one time to sign the release of the loan, or assign an SPA who will execute the transaction in his behalf. The SPA must be consularized by the nearest Philippine Embassy in the applicant's locality.
6) You will also have to coordinate so that the developer will comply with the submission of bank's requirements such as title, tax dec, sketch plan, etc.
Banks requirements may differ from bank to bank; there are those who require additional requirements, but generally, these the most common requirements of banks:
BANK LOAN
(General requirements of most banks, for specific, contact bank concerned.)
If in the Philippines:
* Income Tax Return (latest)
* Certificate of employment with compensation
* Business Permit (if self-employed)
* Community Tax Certificate
* T.I.N. (Tax identification Number)
* Bank Statement (for the last 6 months)
* Marriage Certificate (if married) (Photocopoy)
* Proof of Billing
* Post Dated Checks
Note: All original except marriage certificate, Business Permit, Community Tax Certificate.
If Borrower is permanently abroad:
* Federal Income Tax Return (latest)
* Bank Statement (for the last 6 months)
* Special Power of Atty. (SPA) (consul authenticated)
* Certificate of Employment with compensation (consul authenticated)
* Proof of remittance
* Business Permit (if self employed)
* Marriage Certificate (if married)
* Post Dated Checks
(Note: All original except marriage certificate)
Based on experience, banks require 40% equity if the applicant is a foreigner. This is to cover the risk factor caused by far distance.
Once all requirements are met, the bank then releases the loan which will go directly to the developer. The applicant may opt for either post dated checks for his payment or arrange an auto debit arrangement with any bank. Or he may open a bank account on the same bank that he applied for loan and the payment shall be automatic debit to such account.
You see? it's very very simple. Isn't it ?
Source: ROI Yahoo Groups / Jane Cuizon
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