• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Pagibig Financing

Pag-IBIG Fund, Housing Loans, Mortgage, Membership, Foreclosures, etc

  • Home
  • FAQ
  • Marketplace
  • Contact Us
  • Subscribe

Foreclose

How To Bid On Foreclosed Real Estate

by Pag-IBIG Financing Admin

“Do you have a list of Pag-IBIG foreclosed properties in Cavite area? Please send me a copy. I’m interested to buy.”

That was from an email we received a long time ago from one of the website visitor. Our usual response to such kind of query is to refer them to the Pag-IBIG Branch in-charge of the area. That is the best way to get an updated list of the recent foreclosed properties in a particular city or town.

Of course, there is an online version which you can find by going to this link:

http://www.pagibigfund.gov.ph/AA/default.aspx

Select from the series of drop-down lists provided on that page the areas on which you are interested to buy. Remember that the search result may not always reflect an updated list of foreclosed properties, but this is a good start. You can always verify by calling or visiting the branch.

Foreclosure Sale in Davao City

pag-IBIG Foreclosure Sale via Public BiddingThis article is especially good news to Davao-based Pag-IBIG Fund Members or those who are planning to buy foreclosed properties in Davao City area. The Pag-IBIG Fund Branch in Davao City will be conducting a foreclosure sale by way of public bidding which will be held on April 18, 2012.

If you are not from Davao, this article should give you an idea about the whole process of buying a foreclosed property by bidding on it. Listed below are the set guidelines to make the whole bidding process smooth.

How To Buy or Bid on Pag-IBIG Foreclosed Real Properties

1. Interested buyers are reminded to conduct an investigation and ocular inspection of the properties to determine their actual condition before scheduling bidding.

2. Bidders are required to secure copies of:

  1. instructions to bidders, and
  2. BID FORM from this Department:

Acquired Assets Management and Disposition Unit,
HDMF Davao Branch,
2nd Floor, Pryce Tower Condominium,
Pryce Business Park, J.P. Laurel Avenue, Davao City

3. Each bid shall be submitted in triplicate copies placed in a properly sealed enveloped and addressed to the HDMF Davao Branch Committee on Disposition of Acquired Assets at 9:00 AM on April 18, 2012 at this address:

HDMF Training Room,
3rd Floor, Pryce Tower Condominium,
Pryce Business Park, J.P. Laurel Avenue, Davao City

immediately after which, the said bids shall be opened in the presence of attending bidders.

4. All occupants of the foregoing acquired residential properties shall be given until March 29, 2012 to formalize their offer and shall comply all the requirements not later than April 10, 2012 otherwise, the property they are occupying will be included in the bidding. Occupants may purchase the unit through cash or housing loan:

  1. Provided that back-rentals have been settled and
  2. Provided further that in case of purchase of the subject property through housing loan, the eligibility requirements under the existing housing loan guidelines are met as supported by the Membership Status Verification Slip.

5. Each bid must be accompanied by a Pag-IBIG Fund Receipt (PFR) original copy reflecting payment of the required five percent (5%) minimum deposit computed based on the selling price. Such deposit shall form part of the winning bidder’s down payment or shall be returned to the non-winning bidder without interest upon the completion of the public bidding.

The following articles may also be helpful to you:

  • Foreclosure Properties — To Buy Or Not To Buy? (Part 1)
  • Foreclosure Properties — To Buy Or Not To Buy? (Part 2)
  • Pag-IBIG Housing Loan Restructuring

~~~
“How To Bid On Foreclosed Real Estate” is written by Carlos Velasco.

Filed Under: Buying Tips Tagged With: Foreclose, Foreclosure

Home Loan Restructuring Program

by Pag-IBIG Financing Admin

It all started with delayed or missed payments against the home loan obligation.

Those who have been granted a Housing Loan by the Pag-IBIG Fund should be aware that three (3) missed payments on the monthly amortization could lead to foreclosure — a sort of disaster.

What would you do if your property is on the brink of foreclosure and you are facing financial difficulties as well?

We can’t tell how many of our visitors are into that situations.

If you know someone who is facing foreclosure, or has already defaulted on their amortizations, please help them out by sharing this article. This article could save them, or their house for that matter.

A Visitor’s Comment: “Last year my husband applied for a housing loan and it was approved, but now we have missed more than 3 payments. Is it possible to repay the missed payments and reduce the mortgage term of the loan? What step should we do? Thanks!”

Special Note: Pag-IBIG Fund is currently running a Housing Loan Restructuring and Penalty Condonation Program. The program started last January 2, 2012 and will end June 30, 2012. After June 30, only the loan restructuring will be entertained. Members who have missed paying their monthly amortizations for more than three (3) months may avail of this program.

Condonation means the relief given by law in the payment of penalties, surcharges and a portion of accrued interest to be determined by the Pag-IBIG Fund.

Loan Restructuring refers to a process where the principal terms and conditions of the original loan are modified in accordance with an agreement setting forth a new plan of payment or a schedule of payment on a periodic basis.

Related: Pag-IBIG Housing Loan Default and Foreclosure

Loan Restructuring : Refinancing Under Financial Distress

Pag-IBIG Housing Loan RestructureThere are many reasons why borrowers default on their loan payments. Luckily for the Pag-IBIG members, there’s a Loan Restructuring program that they can take advantage of as a remedy to their delinquent accounts.

Here are the benefits of the Loan Restructuring Program:

  • It allows the home owner to save the property from being taken away from them through the foreclosure process.
  • It allows the borrower to shorten or lengthen (and thus the term “restructure” ) the term of the loan, whatever is deemed an affordable loan term for him.
  • Interests and penalties due during the delinquency period could be waived.

See also : Foreclosure Properties — To Buy Or Not To Buy?

Who Can and Who Can’t Apply For the Home Loan Restructuring Program?

  1. Member-borrowers who have not yet availed of any penalty condonation program from any Government Financial Institution, for example, HDMF, GSIS, SSS.
  2. Borrowers who have missed payments on their monthly amortizations for at least 3 months.
  3. Borrowers whose property was already endorsed for foreclosure, but whose redemption period has not yet lapsed.
  4. Borrowers whose property was already foreclosed but the winning bidder is the Pag-IBIG Fund.
  5. Legal heirs of deceased borrowers with unpaid loan balances after application of the proceeds of the Mortgage/Sales Redemption Insurance (MRI/SRI).
  6. Successors-in-interest of borrowers who have assumed the original mortgage as supported by legal documents duly approved by the Fund.

However, Pag-IBIG is very strict against some accounts that should not be eligible to avail of this program. The following accounts are exempted from tapping this benefit:

  1. Any account without a single payment since takeout, including those whose only payment resulted from its deduction from the takeout proceeds.
  2. An account in which the housing unit has been abandoned by the borrower for more than one (1) year from date of delinquency.
  3. An account in which the housing unit is occupied by a third party other than the original registered beneficiary or his/her legal heirs or successors-in-interest.
  4. An account that has been foreclosed and another party is the winning bidder.
  5. An account that has been foreclosed and with expired redemption period.
  6. An account under a Contract-to-Sell that has been cancelled.
  7. An account that has been surrendered to the Fund through Dacion en Pago, the title of which had been consolidated or transferred in the name of the Fund.
  8. A Contract-to-Sell account covered by the developer’s buyback guarantee.

About The New Restructured Housing Loan

The following are among the most important things you should know about the new restructured loan.

Loan Term — The Home Development Mutual Fund offers a very generous loan term of up to 30 years on the newly restructured housing loan. However, it should be noted that the age of the borrower must not be more than 70 by the time the loan matures.

Interest Rate — The interest rate is 12% per annum or the rate of the original loan, whichever is lower and must be applied against the interest-bearing portion of the loan amount.

Penalty — If the borrower fails to pay any amount due on or before the due date he will charged a penalty of one-twentieth of one percent (1/20 of 1%) of the amount due for the month per day of delay.

Repricing — If the original loan amount is more than Three Hundred Thousand Pesos (P300,000.00), the new restricted loan shall be subject to repricing every three years, reckoned from the date of approval of loan restructuring.

Compare This With: The Current Rates of Interest and Penalties of Pag-IBIG Loans

What To Do Next?

If you are now so eager to restructure, please visit the Pag-IBIG Office that has the jurisdiction of your account and possibly your mortgaged property. Inquire about the full details of this program.

Plus, remember that the penalty dues will only be condoned when you apply not later than June 30, 2012. (As far as this current program is concerned.)

After reading this article, I hope that you will share this to a friend who is also a member of the Pag-IBIG Fund just so he/she knows what to do when foreclosure clock begins to tick.

~~~

“Home Loan Restructuring Program” is written by Carlos Velasco.

Filed Under: Housing Loans, Other Loan Types, Real Estate Finance Tagged With: Foreclose, Foreclosure, Interest Rate, Loan Restructure, Loan Restructuring, Loan Term, Repricing

Foreclosure Properties — To Buy Or Not To Buy? (Part 2 of 2)

by Pag-IBIG Financing Admin

This is the second of a two-part article series on Pag-IBIG Foreclosure. Here we’ll talk about why foreclosure happens and some useful tips on buying foreclosure properties, more specifically, Pag-IBIG foreclosed properties.

(In case you missed Part 1, follow this link.)

Why Foreclosure Happens?

There are endless reasons why foreclosures occur, but basically they all boil down to the following categories.

1. Property Problems. This is perhaps the biggest reason why Pag-IBIG Foreclosures abound. We all know that a lot of Pag-IBIG accredited projects are low cost (read: low-budget) and this leads the developers to resorting to all kinds of dirty tricks just to recover the cost of doing the project.

In Pag-IBIG Subdivisions with high foreclosure rate, it is not uncommon to see the following:

  1. Half-cemented road. You may think they are leave the other half for the next election, but the reality it, the politicians have nothing to do with the project.
  2. Weak structures, sub-standard materials. Houses whose walls are not supported by cables or back doors that are so easy to break any grade school level Karate Kid can do it.
  3. Flooded area. These happen to projects done by fly-by-night developers, the kind of developers who should not be developing subdivisions in the first place.

The list could go on.

Can you blame the buyers if suddenly they stop paying the amortizations and allow the foreclosure clock to just tick? These are reasons enough not to buy in these places even if you see a good deal.

stop pag-ibig fund foreclosure

2. Personal Reasons. People change. Their situations also change. From changing careers to migrating to another country and all else in between, some of life events could drastically affect one’s decision on whether to continue with the property or just let it go.

3. Financial Problems . The money matters no one dares to talk about… until it’s too late.

  1. Disease — We Filipinos are so used to the familiar phrase, “Bawal magkasakit.” It doesn’t require a rocket scientist to figure out that getting sick and being hospitalized for a longer time is really expensive.
  2. Death – If disease is already expensive, death is even more so.
  3. Divorce – Good news: We don’t have divorce here in the Philippines. Bad news: We do have our own strange ways of breaking up a relationship (which should not be made in the first place). Yes, we do break up only after several black eyes are already obvious. Funny huh? Wait until you see what happens to the couple’s real property, which by the way is considered conjugal property

As you can see there are many things and events that could possibly lead to a foreclosure. Therein also lies the problems and opportunities of foreclosure properties.

To Buy Or Not To Buy?

Unfortunately, there is no single best answer. If you know what you are doing and you get lucky enough in choosing a foreclosure property to buy, then good for you. One of the factors foreclosure properties are drawing a lot of interests from buyers, investors and speculators is that their prices appear so very cheap.

However, don’t be misled by the cheap price tag that comes with the property. That Foreclosure property you’re eyeing to buy may contain a bag full of tricks that may not be obvious at first. Always do your homework when considering foreclosure properties.

The following tips should serve as your handy and useful guide when buying a foreclosure.

  1. Uncover the reason of the foreclosure. If possible, meet the owner during the pre-foreclosure stage. You may not get an honest reply, but there are a lot of things you will discover during the conversation.
  2. Get the numbers and do the math. How much is the outstanding balance? What is the monthly amortization? How much was paid so far? What is the selling price? It should be negotiable.
  3. Take a look at the property. Get a second look. Then finally, a third look. Never rely on the map, or the photos or the descriptions of the property. In other words, don’t trust what you are seeing unless it is the property itself. Do some leg work. This process alone is already a potential source of stress, but you have to be aware that this is part of the cheap price you are paying. One of the disadvantages of foreclosure homes is that it is very difficult to inspect what’s inside the house especially if there are still occupants living in the house.

And most importantly, don’t do it alone. Always have a competent lawyer by your side to help you along the way.

“Part 2 of Foreclosure Properties — To Buy Or Not To Buy?“ is written by Carlos Velasco.

Filed Under: Buying Tips Tagged With: Foreclose, Foreclosure

Foreclosure Properties — To Buy Or Not To Buy? (Part 1 of 2)

by Pag-IBIG Financing Admin

In one of the past articles posted on this website, I warned first time Pag-IBIG Home buyers to avoid buying foreclosure properties or even those which are for assume. I reasoned that many of these properties are so problematic to the point of being useless.

Well, they are not really useless if you know what you are doing and you want to take on a little challenge in the hope of reaping the rewards that lie ahead.

Caution:The above paragraph is only for savvy real estate investors. If you are a first time buyer, I still maintain that you should avoid it altogether. When buying your first home, you should treat the whole process as though you have limited financial resources and that you have to make sure you won’t regret doing so later on. As I’ve said many of these properties are inherently problematic that they’re not even worth checking.

This article is an attempt to elaborate on that point a little further.

Recently, we received a letter from one of the website visitors stating her problem with the foreclosure property she bought at Pag-IBIG. I want to share with the readers of this website a portion of that letter to illustrate the most common problem encountered by buyers who have bought Pag-IBIG foreclosed units. Please take note that I have intentionally removed the name and places mentioned in the original letter to keep her privacy protected.

Here goes…

…I’ve been a member of the Fund for almost 16 years now. In 2007, I purchased a foreclosed property in [place not mentioned]. We paid it in cash. To my aghast, the previous occupant refuses to leave the property despite several notices from your office [Pag-IBIG Branch not mentioned] to vacate the property. Your office here advises us to file a case against the previous occupant which we eagerly do so believing it will only be a couple of months and the property will be turn over to us. But until this day, we haven’t taken a hold of the house we legally bought at your office. We knew before paying the unit that Pag-Ibig will not participate in “driving out” whoever is occupying the house. Only that, justice is so slow paced. The counsel of the previous occupant believes that house conflicts of this kind should be settled first with the HLURB and that whatever is the decision of the RTC is immaterial. He cited the MAgna Carta for Homeowners. Natatakot po kami ng husband baka po matalo kami paano na po ung binayad namin sa pag-ibig. Malaki na po ang nagastos namin sa kasong ito. Sobra pa sa binayad namin sa pag-ibig.

The title is already transferred in our name as well as the tax declaration.

What is our chance of winning the case? May case ba na gaya sa amin na nanalo ang buyer ng foreclosed property nyo? …Thank you.

Pag-IBIG Fund Foreclosure HomeI don’t how you feel after reading that one, but the first time I read it, I already felt sorry for the buyer. Of course, I read it for several times more making sure that I understood the real problem the letter sender is facing.

It is very unfortunate that cases such as these are not readily available in the mainstream media. It maybe because it’s very shameful being victimized this way. Adding insult to the injury, the Pag-IBIG Fund can’t even assist buyers in successfully handling the case.

This is the first part of the series of articles on Pag-IBIG Foreclosure Properties. In the next article, I’ll show you some tips and traps of buying foreclosure properties from the Pag-IBIG Fund.

Update: Part 2 is now ready. Please read it here.

~~~

Foreclosure Properties — To Buy Or Not To Buy? is written by Carlos Velasco

Filed Under: Buying Tips Tagged With: Foreclose, Foreclosure

Mortgage Loan Fundamentals

by Pag-IBIG Financing Admin

Real estate properties are seldom bought on spot cash. The vast majority are purchased with a little down payment and mortgage loans on the balance.

A mortgage loan is a form of secured financing; that is, the lender gives you the needed financing and in return you pledge the property as collateral.

In a mortgage loan, there are two very important documents that you will be committed to:

  • Note – is a promise to repay the loan on a timely basis
  • Mortgage or Deed of Trust – is a pledge to secure the loan with the real estate in question in case the borrower fails on his loan obligations.

A mortgage creates a lien on the property, which gives the lender the right to foreclose the property in question.

A loan default happens when you fail to repay the loan “on time” as stipulated on the contract. If that happens, the lender can foreclose the mortgage and take on the property.

Interest Rate and Loan Term

A mortgage loan has two very important components that you need to be aware of.

  • Interest rate – is the price of using the lender’s money and is applied to the principal balance. A lower interest rate means a cheaper use of the lender’s money and should be good for you.
  • Loan term – the time it takes to pay off the whole amount borrowed. Loan term usually spans a number of years.

These two factors primarily affect the installment payments, which is usually on a monthly basis.

The amount shown on the monthly installment schedule always remains constant. When you pay off a loan, a portion goes to the interest payment and another portion goes to pay off the principal amount. In other words, the principal balance is reduced with each payment that you make. And as a consequence, the interest is also reduced as the loan matures. Early installments mostly go to the interest payments while later installments mostly cover the principal.

Down Payment and Mortgage

Most lenders will not grant you a loan that is equivalent to the selling price of the property. In many cases, they will have to appraise the property and you will be asked to put a down payment and loan the remaining balance of the appraised value.

The down payment is sometimes referred to as equity on the property.

The standard down payment is 20% of the appraised value of the property; 80% being your loan or the financed amount.

The more money you put as down payment, the lower your loan will be. And always remember that the loan bears an interest.

Now comes the question: Which is better of the two?

  1. A low down payment and large loan.
  2. A large down payment and small loan.

There are arguments favoring one over the other. It’s all up to you and your circumstances. But sometimes, the lender will force you to take on lower loan (with large down payment) to lower their risk of loaning you the money to finance your real estate purchase. That’s just pure business.

Pag-IBIG Mortgage Loan

Depending on the property and where you are buying it, Pag-IBIG Fund may give you a large amount of loan which is almost equal to the selling price of the property. But always bear in mind the maximum loan amount the Pag-IBIG Fund can grant you. If you find the amount too small for the property you are considering, you may need to come up with a large down payment or you may use an alternative financial institution.

~~~

Mortgage Loan Fundamentals is written by Carlos Velasco.

Filed Under: Housing Loans, Real Estate Finance Tagged With: Collateral, Deed of Trust, Down Payment, Equity, Foreclose, Foreclosure, Housing Loan, Interest Rate, Lien, Loan Default, Loan Term, Mortage Loan, Mortgage, Note, Pag-IBIG Loan, Pag-IBIG Mortgage

Primary Sidebar

Article Categories

  • Buying Tips (21)
  • Featured Project / Property (13)
  • Housing Loans (39)
  • Membership (17)
  • Other Loan Types (8)
  • Pag-IBIG Fund QA (9)
  • Pag-IBIG Overseas Program (9)
  • Pag-IBIG Savings And Investments (7)
  • Real Estate Finance (32)
  • Tips and Traps (23)

Recently Written

  • Home Construction Loan — Should You Get One From Pag-IBIG?
  • Credit Card and Globe G-Cash — New Ways to Send Your Payment to the Pag-IBIG Fund
  • Pag-IBIG Housing Loan Basics. Plus: Dividends, Lost Land Title, etc
  • 5 Home Buying Strategies When Money is Tight
  • Common House Types in the Philippines
  • Home Ownership And Its Many Benefits
  • House For Sale in Laguna
  • How To Become An Expert in Pag-IBIG Housing Loan in 25 Minutes or Less
  • 3 Stupid Things People Do With Their Mortgage Loan
  • How To Assume A Loan
  • Real Estate Agents: Should You Work With Them?
  • Top 4 Reasons Why You Should Not Buy A House
  • Pag-IBIG Real Estate For Sale, May 2012
  • Email Exchange: Maximum Loan, Reactivating Member
  • Capital Gains Tax, Other Real Estate Fees You Should Know
Pag-IBIG Financing © 2010–2025
This website made by NegosyoBuilder.com