PAG-IBIG | Why is my property tagged as foreclosed?
PAG-IBIG Fund is a government-mandated Home Development Mutual Fund, that gives its contributing members the power to finance their home purchase at a more affordable rate, as compared to the rates offered by real estate developers and banks. This gives every Filipino an opportunity to own a home without having to pay in bulk amount and with lower interest rates. However, there are borrowers who fail to pay for their loaned property and gets their properties foreclosed.
Pag-ibig Foreclosed properties mean that Pag-ibig Fund takes possession of a mortgaged property as a result of the mortgagor ‘s failure to keep up their mortgage payments. These are properties acquired by Pag-ibig due to a non-paying borrower.
When you take up loan through Pag-ibig Fund, they take your property as a collateral of the borrowed money used to pay for the property to your property developer. In the event, you don’t make payments of your monthly amortization, PAG-IBIG Fund or the bank where you borrowed money from will take over your property.
How many months before they declare my property foreclosed?
Non-payment of your monthly amortization for 3 months, your account will already be tagged as foreclosed. Your account will be forwarded to a 3rd party collecting agency that will contact you to remind you about your unpaid account. After a few consecutive communication, if as a borrower you will not commit to pay or negotiate to pay for the property they will endorse your account to a sheriff for you to vacate the property.
Does the bank or PAG-IBIG or financing institution have the right to take over the foreclosed property?
Yes, it is stated in the contract upon the loan approval and release of your loan. You signed and agreed to it, prior to moving in.
In all foreclosed properties, the first priority to buy back the property is the original owner of the property. If after posting of the foreclosed properties and the first owner will not show any interest in buying it back, the financing institution has the right to award the property to the next eligible buyer.
If you are interested to purchase a foreclosed property in Pag-ibig, Visit PAG-IBIG ACQUIRED ASSETS
Although it is true that no one is put in jail for unpaid debts, but you will surely loose a property if you continue not to pay a loan. Whatever your personal reason is, a debt is a debt and you have to pay it, whether you like it or not.
Charmaine Xy-Za Yape is a founding member and a blogger of Filipino Homes. She is also a PRC and HLURB Registered Real Estate Professional and a Licensed Financial and Investment Advisor. She is an International Realtor member. She is a Hubspot certified in Inbound Marketing. She is also the co-founder of Iligan Bloggers Society, Inc.