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Pag-IBIG Overseas Program

Real Estate Agents: Should You Work With Them?

by Pag-IBIG Financing Admin

Some people have a lot of misconceptions about real estate agents in the Philippines and the kind of work that they do. This one is the most common among them: “I don’t want to deal with a real estate agent. It is more expensive to buy from them than straight to the seller.”

Well, actually it is both true and false, depending on the case and the kind of property the agent is selling. Let me explain.

If you are buying a new property from a developer, chances are good that the price is already fixed by the company’s Marketing Department. The real estate agent or broker can’t do anything about the price. He can’t lower the selling price or jack it up higher. Can you just imagine if the developer allows their agents do their own pricing? It would be a disaster since the prices would naturally be different and would therefore confuse the buyer.

The story would be different if the property is owned by an individual investor or seller. Here is a typical scenario if an individual seller would enlist the help of an agent in selling his property:

  • The seller comes up an amount he wants to pocket for the property. Naturally, this price already includes his profit. Sometimes he would price the property so much more to leave room when the buyer tries to negotiate the deal.
  • The seller would then say to the agent, “That’s already the NET price. It’s up to you to put your mark-up price. I want to take nothing less than that amount and the buyer will be the one to shoulder all other expenses.”

Questions: If you were the agent, at which price would you sell the property if the owner wants to take a net amount of P2,000,000.00? Would you be so kind to sell it at P 2M also without taking a profit? Or, would you mark it up to compensate for your efforts and marketing expenses? How do you think would other agents come up with their price?

Well, I hope that leaves you with something to think about, whether you are selling or buying a property. Take note that most agents are uncomfortable with marking up the price. They are always afraid that the buyer will discover the seller’s asking price and will try to out-maneuver them from the deal.

Technically, a real estate broker is different from a real estate agent. But for simplicity, here we treat them as the same way and refer to them using the term real estate agent or simply agent.

Again remember that if the property is being sold by a developer, the price is dictated by the company. In other words, it is much comforting (no negotiations, no counter-offers, etc) on your part if you buy from a developer instead of buying from an individual seller.

That said, it is worth mentioning that there are numerous advantages when you work with a competent real estate agent, among them are the following:

  • An agent saves you time and money looking for a property and the right financing.
  • A good agent is also updated with the latest in the local property market.
  • A buyer’s agent can help you negotiate the price.
  • An experienced agent has a network of other professionals like lawyers, interior designers, home builder, etc.
  • A good agent can assist you when something goes wrong with the deal, which is very likely to happen.

Who Should Get An Agent?

You already know the advantages of working with a competent real estate agent. It’s true that you can skip the services of an agent and buy direct from the seller, who is either a company of an individual. If you have all the time in the world, or you are confident enough of the whole process, you can do that. But I believe there are people who should be working with an agent to save them from trouble. If you belong to the following groups, I suggest that you really should hire the services of a good agent.

1. First-Time Home Buyers. If this is your first time to buy, don’t ever make a mistake of buying on your own. Buying a property is a complicated transaction which involves a lot of legalities you should be aware of. As much as possible get the help of an expert lawyer. And a competent real estate agent should be able to guide on the intricacies of buying and financing.

(See also: 5 Great Tips for the First-Time Home Buyers)

2. Relocating Buyers. It would be best if you are thoroughly familiar with the place where you wanted to buy. But for many relocating buyers, this is not always the case. This is where an experienced and long-time real estate professional can help.

3. Overseas Filipinos. The Philippines could seem a little strange if you have been away for a number of years. If you are based abroad, you will need at least two persons when buying a property here in your native country: a trust-worthy representative (usually a relative) and a good real estate agent. We are so low-tech here that a simple transaction is enough to make you lose your temper.

(Related article: Joining the Pag-IBIG Overseas Program.)

4. Busy People. Buying a property is very time consuming and very stressful, too. If you are so busy with work or business, you really should consider getting an agent.

5. Foreigners. We have some ways of doing things here that you may be doing differently at home in your country. Before you go nuts, it would be wise to have a good, competent buyer’s agent on your side to help you explain things.

(See also: Citizenship and Land Ownership in the Philippines)

Also don’t forget to do your part as a buyer of real estate. Use the Internet to conduct your own research of the property that you want to buy. This website alone offers a wealth of information that helps you become an educated buyer. Take time to read the other articles which interest you.

~~~

This article on working with real estate agents is written by Carlos Velasco.

Filed Under: Pag-IBIG Overseas Program, Tips and Traps Tagged With: Broker, Real Estate Agent, Real Estate Broker

Email Exchange : Buying Preparation, Unpaid Amortization, Membership Reactivation, etc

by Pag-IBIG Financing Admin

Topic #1 : What You Should Know Before You Buy A Real Property

Subject: Preparation on Home Purchase

I have been a Pagibig member and was contributing voluntarily while I was in Philippines. I woulld like now to prepare myself in buying a home there. I have no relatives that I can send in your office. I also dont know my pagibig number and how much contributions I have made. Is there a number in Pagibig Cebu City office that I can call and an email address that I can send documents and follow up. Thanks

Here are some good links for you to consider.

  1. Tips for First Time Home Buyers
  2. Income vs Loan Amount
  3. The Pag-IBIG Housing Loan Process

Home Buying Questions

Topic #2 : What Happens If You Don’t Pay Your Amortization?

Subject: Payment information

Hi! good day, I just wanted to know from your good office if it is possible that the housing loan is not paid for 1year or more will the pagibig will not forclose the property?

The grace period for any missed payment is only 30 days. If you are unable to pay for 3 months, the property is already subject for foreclosure, but it could take a long time for them to disposed of it. You are still given a chance to redeem the unit or restructure your loan.

If you are in that situation already, please read the article on Home Loan Restructuring to save your property. Here’s a link:

Home Restructuring Program

Please visit the branch handling your mortgage loan.

Topic #3: OFW Checking Membership Status

Subject: Inquiry

I was a member of PAG-IBIG I for almost 10yrs in the Philippines but I stopped my contributions when I resigned teaching. After 2 years, I became an OFW in US but before I left I paid a certain amount in POEA because they required us to pay as our contribution. When I asked the guy (PAG_IBIG representative) he told me that my payment goes to my old PAG-IBIG contributions(that was Feb. 2011).Now I want to apply a housing loan in the Phiulippines but i don’t know the status of my membership. Could you please explain my status and how could I avail housing loan?Do you have active office that I can visit or call in America most specially in California.

Please contact me using my email address.

You need to check it at the branch which keeps your records. If you are already out of the country, you may want to send in a representative to process it on your behalf.

Since you wanted to apply for a housing loan, it helps if have an idea of the process. Please read this article:

Pag-IBIG Housing Loan Process

As for the overseas office, please refer to this link:

Pag-IBIG Directory

I hope this helps.

Topic #4: Where To Pay For Housing Loan Dues

Subject: inquiry on where to pay

good day! i applied for pag-ibig online and have received my number. but i don’t know where to pay or what requirements i still need to present to pay.can you please give me detail? thank you very much. by the way i am a licensed physician woring as a moonlighter/freelance on voluntary payment. thank you

Here are some of the ways you can pay the Pag-IBIG Fund:

How To Pay The Pag-IBIG Fund

The best one is still to do it over the counter at the branch where your records are kept.

Filed Under: Buying Tips, Housing Loans, Membership, Pag-IBIG Overseas Program Tagged With: Amortization, Housing Loans, Income, OFW Membership, Requirements

Joining The Pag-IBIG Overseas Program — Is It Really Worth It?

by Pag-IBIG Financing Admin

Did you know the difference between the Pag-IBIG Overseas Program and the regular Pag-IBIG Program, likewise known as Pag-IBIG I?

Most OFWs assume that since they are based overseas, they should be getting the Pag-IBIG Overseas Program, as they are now compelled to become members of the Pag-IBIG Fund.

Well, that’s not really the case.

Let me explain further by citing in part a message sent to us (via an article comment) by a site visitor who is an OFW based in Singapore.

I am an OFW since December 2008, and I stopped my contribution the same date. Last month, October [2011], I started to contribute again in one of your outlets here in Singapore. Since I Don’t know my Pag-ibig account no., they just gave me a new one temporarily. And they said its ok.. and can add up that to my old Pag-ibig account if i will activate the status of my old account…

1. Is it true?

2. How come? like for example if i want to avail a housing loan? you mean i need to wait for me to complete my ofw 24 months contribution?

3. Then hows my 4 years local contribution? is it like forfeited?

Actually I let my father follow up that today in the philippines. then one of the staff said that my local contribution is different from ofw and cannot combine it.. for me to have a housing loan.
what to do.?? please help. It’s so confusing po. thank you admin.

From that letter, let’s discuss the following topics as they relate to the Pag-IBIG Overseas Program and the regular Pag-IBIG membership a.k.a. the Pag-IBIG I.

  • POP vs Pag-IBIG I – Know the Difference
  • The past contributions

Let’s elaborate each of these subjects.

The Pag-IBIG Overseas Program vs The Pag-IBIG I – What’s the Difference?

You may not know it yet, but you can contribute to the Pag-IBIG Fund in the following manner:

  • Pag-IBIG I — This is the regular Pag-IBIG membership. During the inception of the Home Development Mutual Fund, this is the only membership type that’s available. As time passes, the program has grown to offer special service coverage for the Filipino workers based abroad. They rarely call it Pag-IBIG I now, but it got the name because the organization has introduced the Pag-IBIG II program.
  • Pag-IBIG II — This is a savings program, which is supposedly offering a higher rate on your money compared to the annual dividend earnings of your Pag-IBIG I money. You can only participate with Pag-IBIG II if you are a member of the Pag-IBIG I.
  • Pag-IBIG Overseas Program — Abbreviated as POP, this program was originally intended for the overseas Filipinos who wanted to become members of the Pag-IBIG Fund. This one is different and separate program from Pag-IBIG I.

(Related topic: Please check our previous article, which discusses in some details the POP Program.)

Pag IBIG Overseas program

However, since the passage of the Home Development Mutual Fund Law of 2009, where OFWs are already required to become members of the Pag-IBIG Fund, this program has been relegated to the side.

Important Tip: OFWs who are not yet members of the Home Development Mutual Fund should choose to enrol in the regular Pag-IBIG Program and not the POP. This is the only kind of membership required of you. With this program, you are already entitled to all of the benefits available to Pag-IBIG Fund members.

The Past Contributions

This scenario is very common: Before going abroad to work as an OFW, most Filipinos are already members of the Pag-IBIG especially those who have work experiences locally here in the Philippines. By the time they go overseas, they lose track of their membership and just forget about the whole thing — no more updated contributions; any existing Multi-Purpose Loan obligation is forgotten, etc.

If this is your case, remember the following:

  • All your past contributions to the Pag-IBIG Fund will stay there and will continue to accumulate dividend as the time passes, unless you happen to have an MPL Loan which you are not paying anymore.
  • Non-payment of your MPL puts a lien on your Total Accumulated Value (TAV) – that’s your money, contributions plus dividends. What will happen is that Pag-IBIG will use your TAV to pay for your personal loan. (That’s the reason why you are only granted a percentage of your TAV for your MPL loan.)
  • You can always activate your regular membership by contributing anew.

If you have some more questions related to this topic, please feel free to use the comment form below. We may have to update this article depending on the questions that we get.

The title of the article has raised this question: Is it really worth joining the Pag-IBIG Overseas Program?

What do you think? You be the judge. Make sure you also read the related articles cited as links on this article. Don’t hesitate to send us your opinions.

~~~

“Joining The Pag-IBIG Overseas Program — Is It Really Worth It?” is written by Carlos Velasco.

Filed Under: Membership, Pag-IBIG Fund QA, Pag-IBIG Overseas Program Tagged With: Membership, Pag-IBIG Overseas Program, POP

Subject: OFW Loaning

by Pag-IBIG Financing Admin

We are always delighted to receive letters from OFW Pag-IBIG Members.

A couple of days ago, we received a letter from a Pag-IBIG Member who is an Overseas Filipino Worker based in Indonesia. The subject line of the email says, “OFW Loaning.” As you can see, he was planning to apply for a Housing Loan with Pag-IBIG Fund. Why not? That’s one of the benefits afforded to every Pag-IBIG Member and you should avail that one too.

If you are an OFW, please read carefully the entire content of this article as you may gather some bits of important information that is particularly applicable to your situation.

Here’s what the letter says in part:

“I am working here in Jakarta for 3 years now making my contribution for Pag-ibig stagnant for 3 years as well. I have three questions: Is it still okay to continue Pag-ibig rather than opt for POP which is specialized for OFWs? If yes, can I pay every 6 or 12 months since I go home once to twice a year to the Philippines anyway? Apart from not giving my contributions for 3 years, can I still presently use my existing contributions which I had with my former employer to loan for housing to date?”

In the succeeding paragraphs, we try to dissect some parts of the letter to address the questions that he raised. We present here our original reply, which was really just a very short and quick. In addition, we also elaborated more on the issue for the benefit of the other website visitors, most especially the Overseas Filipinos.

Question #1 : Is it still okay to continue Pag-ibig rather than opt for POP which is specialized for OFWs?

pag-ibig housing loan philippinesAnswer to Q#1: The Pag-IBIG Overseas Program (POP) has already been stalled and replaced with the regular Pag-IBIG Membership which is sometimes referred to as Pag-IBIG I. So, if you have not been a member of POP, that’s okay. You can simply continue with your former Pag-IBIG I Membership.

More Detailed Answer: Yes it’s true that since the Pag-IBIG Law of 2009 took effect, all OFWs are already required to become members of the Pag-IBIG Fund. For those who have returned to the country and have visited the office of the POEA before going back to work again abroad experienced this already. Just to make it clear, this is Pag-IBIG I, or the regular Pag-IBIG membership.

The Pag-IBIG Overseas Program was not at all abandoned. It’s just that, Pag-IBIG is not accepting new enrolees to the program anymore. But for those who are already contributors, you can do so until that reaches its maturity period and then be ready to cash out all your contributions.

(See also: The Home Development Mutual Fund Law of 2009 )

Question #2: If yes, can I pay every 6 or 12 months since I go home once to twice a year to the Philippines anyway?

Answer to Q#2: Yes you can do that — meaning make advanced payments.

A Better Way To Do It: Have someone whom you can trust with your money pay for your contribution over the counter at the Pag-IBIG Branch of your choice on a monthly basis. Or, you may also issue a set of post dated checks.

(See also: 5 Ways To Pay The Pag-IBIG Fund.)

Question #3: Apart from not giving my contributions for 3 years, can I still presently use my existing contributions which I had with my former employer to loan for housing to date?

Answer to Q#3: Please be aware that you need to be an actively contributing member to qualify for a housing loan.

Related Answer: Your past contributions will certainly count in terms of establishing your track record with the Pag-IBIG Fund. But remember, it’s not just the contributions that will ensure your loan approval. The most important factor really is your capacity to pay.

( See also: Your Income and Your Loan Entitlement)

~~~

“Subject: OFW Loaning” is written and by Carlos Velasco as an elaborated answer to a letter sent by an OFW Member.

Filed Under: Pag-IBIG Fund QA, Pag-IBIG Overseas Program Tagged With: Benefits, Contributions, Housing Loan, OFW Program, Pag-IBIG Fund Law

Top 5 Things Every OFW Should Know About The New Pag-IBIG Law of 2009

by Pag-IBIG Financing Admin

With the introduction of the Republic Act 9679, otherwise known as the Home Development Mutual Fund Law of 2009 or simply Pag-IBIG Fund Law of 2009, a number of changes have been implemented to the existing rules of the Pag-IBIG Fund.

This article touches those affecting the Overseas Filipino Workers and those things that are most important to them.

1. Mandatory Membership

In the past, membership to the Pag-IBIG Fund by OFW and migrant Filipinos is only voluntary under the Pag-IBIG Overseas Program. But that’s not the case any more since the introduction of the Pag-IBIG Fund Law of 2009, which took effect last January 2010. All Overseas Filipino Workers (OFWs) and Filipino Seafarers are already required to become members of the Pag-IBIG Fund. Those who have been to the Office of the Philippine Overseas Employment Agency will tell you that they were made to pay for Pag-IBIG Fund Membership there. A lot of OFWs are not aware of this, but you who are reading this article should not be surprised any more.

(Please be concerned with your fellow OFW friends and share this article to them.)

2. Membership Application

overseas filipinoInstead of catching yourself unprepared for this thing at the POEA Office, it’s best if you are the one to enroll yourself to become a member of the Pag-IBIG Fund. To do this, please visit any of the following offices:

  1. If you are based overseas, please visit the Philippine Consular Office or Philippine Embassy in your host country.
  2. Locally in the Philippines at the following:
    • Any Pag-IBIG Fund Branch
    • Pag-IBIG Satellite Office at the POEA
  3. For all OFW concerns, don’t forget this office:

    Pag-IBIG Fund International Operations Group
    6th Floor, Justine Bldg.,
    Gil Puyat Avenue, Makati City

3. Contribution Rate

When it comes to the amount of contribution, Pag-IBIG doesn’t distinguish anymore between a locally based Pag-IBIG Member and that of an OFW Member. They are all under the Regular Pag-IBIG Membership likewise known as the Pag-IBIG I Membership. In other words, the contribution is only P 200 per month. And since there is no employer counter-part for OFW’s, you have to shoulder it all by yourself.

Take note that you may be asked to upgrade your contribution once you are approved a housing loan.

See also this article: “How Your Income And Contributions Affect Your Housing Loan Entitlement”

4. About The POP Membership

Some of you may have been a member of the Pag-IBIG Overseas Program (POP) already. Please bear in mind that POP is entirely different from Pag-IBIG I. While POP is optional for OFWs, Pag-IBIG I membership is mandatory since 2010 (refer to #1 above). Since the two programs are separate, your contributions to POP will not be merged with your Pag-IBIG I membership.

If you have been contributing for the POP Program, it would be to your advantage if you continue with it until it reaches maturity period where you are become entitled to withdraw your funds with its TAV.

Take note also that for other POP members, like the migrant Filipinos who are not OFWs, the membership to the Pag-IBIG I is only voluntary

( See also: Overview of Pag-IBIG Overseas Program )

5. Benefits of Pag-IBIG Membership

Basically, there are three benefits that all Pag-IBIG Members are entitled to.

  1. Housing Loan – this is the most popular and the most attractive benefit.
  2. Short Term Loan (Multi-Purpose and Calamity Loans) – a non-collateral loan that you can use for anything.
  3. Provident Savings – Pag-IBIG Fund’s Saving Program for its members.

For a detailed explanation of these benefits, please refer to this article: “Benefits of Becoming A Pag-IBIG Fund Member”.

~~~

“Top 5 Things Every OFW Should Know About The New Pag-IBIG Law of 2009” is written by Carlos Velasco.

Filed Under: Membership, Pag-IBIG Overseas Program Tagged With: Benefits, Housing Loan, Pag-IBIG Fund Law, Pag-IBIG Overseas Program, POP, Provident Savings

Citizenship, Land Ownership and Pag-IBIG Fund Membership

by Pag-IBIG Financing Admin

A good number of our website visitors came from Filipinos based overseas – both OFWs and immigrants. And occasionally, we also have dual-citizenship holders and former Filipinos who are certainly interested in the Pag-IBIG Fund Program. The messages and inquiries that we received from them are as varied as the different cultures they are currently in.

There is one particular question that struck our attention and we want to cover it hear simply because it many of our visitors can relate to this one and we want them to be informed about this once and for all.

The question came from R. Nunez and he said in part…

“I am a dual citizen but wish to retire early in the Philippines(Filipino/American passport holder).Can I be qualified to become a ‘Pagibig Fund’ member?”

And we replied with this:

“Please don’t make it complicated on your part. You can always use a Mortgage Loan from a Bank in your situation. That way, there is no more membership requirements and other complicated matters that go with it.”

“And yes, you are certainly allowed to own a piece of land under the Laws of the Philippines.”

(For the complete series of replies, refer to this link. )

Again, we are citing that particular inquiry because we want to elaborate further and add a few more important information for Dual Citizenship holders just like Mr Nunez and other former Filipinos as well.

Citizenship and Membership To The Pag-IBIG Fund

The right answer to Mr Nunez question is this: Yes, he is qualified to be a member of the Pag-IBIG Fund under the Pag-IBIG Overseas Program. As a matter of fact, The Pag-IBIG Fund stated that “Membership under the Pag-IBIG Overseas Program (POP) shall be open to all Overseas Filipino Workers (OFWs) with valid visas or employment contracts. Likewise, it shall be open to Filipino immigrants and to Filipinos naturalized in other countries.”

IMPORTANT UPDATE:
The Home Development Mutual Fund (or simply Pag-IBIG Fund) has changed the rule requiring OFW’s to become members of the Pag-IBIG Fund. In other words, the Pag-IBIG Overseas Program is only optional for the OFW’s, because they are now required to become regular members of the Pag-IBIG I.

For more information on the Pag-IBIG Overseas Program, please refer to the following links:

  • Overview of the Pag-IBIG Overseas Program
  • Pag-IBIG Office / Partners/ Affiliates Abroad
  • The New Pag-IBIG Law of 2009
  • Joining The Pag-IBIG Overseas Program

Citizenship and Land Ownership

dual passport -- Philippines and EnglandIt is a well known fact that land ownership in the Philippines is granted only to Filipino Citizens and Philippine Corporations with at least 60% interest by Filipinos.

Foreign Nationals are definitely not allowed to own. Most of them simply put the Land title in the name of a Filipino whom they can trust such as the spouse. Or it could be that they are on a long term lease-contract with the land owner.

As for the former Filipinos who are already naturalized in other countries, the Law of the Philippines still allows them to own a piece of land, but with a few limitations.

If this describes you, take note of the following restrictions.

  1. Land must be used for residential or business purposes only.
  2. Limitation on Residential land:
    1. maximum of 1,000 sq meters of urban land
    2. or one (1) hectare of rural land is allowed
  3. Limitation of Land intended for business use:
    1. maximum of 5,000 sq meters of urban land
    2. or three (3) hectares of rural land
  4. You can only get either urban land or rural land, but not both.
  5. A maximum of two (2) lots not exceeding the maximum limit in total combined area is allowed. Lots must be located in different cities or municipalities.

As for the Dual Citizenship holders (one citizenship being a Filipino) the Law of the Philippines still allows you to own land in your name just like any Filipino National.

~~~

Citizenship, Land Ownership and Pag-IBIG Fund Membership is written by Carlos Velasco.

Filed Under: Membership, Pag-IBIG Overseas Program Tagged With: Citizenship, Co-borrower, OFW, OFW Membership, OFW Program, Pag-IBIG Overseas Program, Title

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