Looking to fulfil the dream of owning a Pag-IBIG housing property this year? Acquiring properties during this time of pandemic might be a worthwhile timing with a depressed real estate market and more affordability.
The Home Development Mutual Fund, commonly known as the Pag-IBIG Fund is a government agency whose original purpose was to serve as a retirement fund (hence the term Fund) to encourage savings among its members, notably Filipino citizens in the Philippines and abroad. In addition to managing a savings program for Filipinos, one of many benefits and the most popular one available to members is a housing loan. Members can avail of low-interest loans to finance the acquisition of a housing property. Loans are repaid to Pag-IBIG over a period of years on terms decided by the member who buys a property and is approved by the agency.
When the property owner is unable to pay housing repayments or mortgage as stipulated in the loan agreement, the property will be foreclosed and auctioned off to the public by Pag-IBIG to recover defaulted home loan. The owner will lose possession of the home property as it is then classified as Pag-IBIG acquired asset.
A Pag-IBIG acquired asset is an attractive property made available to the public as its cheaper price tag makes it a more realistic asset to acquire to those who wish to own a new property but cannot afford brand-new properties.
Also, the advantage of buying Pag-IBIG acquired assets is that they are mostly cheaper than other properties offered in the real estate marketplace. Also, extra incentives such as price discounts are available for buyers on certain terms such as cash payments or short-term installment payments.
To get started here are the steps interested property buyers can follow:
Browse Pag-IBIG acquired assets in two ways:
1a. Through Pag-IBIG Official Website.
- Go to the Pag-IBIG Official Website’s Properties for Sale / Acquired Assets page:
- Search for Housing Business Center near your preferred location.
- Click on the “Click here to open complete details” link (sample document) to open the document to view complete details of INVITATION TO SUBMIT OFFER TO PURCHASE.
- To search among listed assets within your preferred location, scroll down to LIST OF ACQUIRED ASSETS FOR NEGOTIATED SALEFollow the general guidelines on preceding pages of the document on details of sale (bulk, retail, group), expressing interest and submission of an offer, as well as date and time of submissions.
1.B.Alternatively, you may search the same data at: https://www.foreclosurephilippines.com/classifieds
Apply filters such as publish date and location for a list of properties based on your preference.
The website also has an advanced search for price range (cheapest or most expensive listed first or based on your price range), lot area size, or if you prefer a listing only of properties that are currently unoccupied.
Inspect selected properties for due diligence.
This is a very important step because:
- Listed properties are for sale on an as-is, where-is basis. This means the buyer is buying an item in whatever condition it presently exists, and that the buyer is accepting the item “with all faults”, whether or not immediately apparent.
- You may need to inspect in person if property images are not available online.
- In light of the current COVID-19 pandemic situation, wear facemask/ face shield, observe social distancing, etc.
- Take note that there are no caretakers for PAG-IBIG properties.
- For your safety, do not proceed if the property is marked as “occupied”, and there are cases where properties tagged as unoccupied have actual occupants.
- Check for the property’s physical condition and for other available properties within the area.
- Check for unpaid arrears (electricity/ water bills, other dues).
- Check for title and tax declaration
Submit offer at the designated dropbox
- Register before you can submit an offer (be early to be able to register)
- Offer price shall not be below the minimum gross selling price
- Use the official Offer to Purchase form
- Seal the requirements into an envelope
- Select preferred mode of payment (take note of applicable discounts)
- You do not need to pay for reservation fee for a negotiated sale.
- You may designate a representative to drop your offer for you provided they have the following:
- Authorization letter of SPA (an official form is available)
- Photocopy of buyer’s ID with the buyer’s 3 specimen signatures and contact details.
Attend to the determination of Winning Offers or Opening of sealed bids
This session determines whether your offer to acquire your desired properties has been successful or not.
- Witnessed by COA representatives. The buyer’s attendance is optional but recommended.
- A buyer with the highest offer will be considered as a winner.
- Two identical highest offers will be settled by a toss coin.
- Three of more identical highest offers will be settled through draw lots.
- Winners will be notified through Text Message or Email.
- Names of winners will be published on the PAG-IBIG official website.
- The winner shall pay a non-refundable reservation fee of Php 1,000.00 within 5 working days upon receipt of the Notice of Award (NOA). For cash or short term instalment, a downpayment of at least five per cent (5%) of the net selling price shall be paid together with the reservation fee.
Receive and Sign the Deed of Conditional Sale (DCS)
- Read and understand the provisions of the deed before signing.
- As a legally binding document, the DCS will be notarized.
Submit the duly notarized Deed of Conditional Sale to Pag-IBIG Office
- Conditions included in the document may be as follows:
- For cash payment, the balance shall be paid not later than 30 calendar days from the date of signing of the DCS.
- For short-term Installment, the balance shall be paid for up to 12 equal monthly instalments subject to the interest based on Full Risk-Based Pricing Framework for a 3-year fixing period.
- For long-term instalment, up to 30 years payment. Incidental expenses due within 30 calendar days from payment of reservation fee:
- Processing Fee of Php 2,000 (or whatever fee that supersedes this amount in the future)
- Equity, if applicable.
- One year advance insurance premium (sales redemption insurance and non-life insurance).
Start paying for the balance
Please note that the winning buyer shall take possession of the property after submitting the requirements and signing the Deed of Conditional Sale without seeking assistance from the Fund.