Pag-IBIG acquired assets are ideal for both low-income earners who want to own an affordable home and real estate investors who want to maximize their returns.
Interested in buying an acquired asset from Pag-IBIG? Here’s everything you need to know about Pag-IBIG Fund acquired assets to make an informed buying decision.
What are Pag-IBIG Acquired Assets?
A Pag-IBIG acquired asset is a property that’s foreclosed because the original owner who availed of Pag-IBIG housing loan failed to pay the monthly amortizations.
The Pag-IBIG Fund normally gives delinquent borrowers a chance to buy back their foreclosed property when they default on their payments. It also offers this buy-back option to tenants who occupy and rent the foreclosed properties.
If the buy-back option doesn’t work out, Pag-IBIG offers the foreclosed property to new buyers at a lower price via public bidding to recover the unpaid loan and generate income for the Fund.
If the sale via auction fails for a certain property, it is then put up for negotiated sale in which buyers can get as much as 30% discount.
Should I Buy a Pag-IBIG Acquired Asset?
Purchasing a foreclosed property from Pag-IBIG makes financial sense for two reasons.
First, Pag-IBIG acquired assets are sold at prices below the market value. This enables you to afford a home if you don’t have enough money to purchase a brand-new property. If you avail of Pag-IBIG housing loan to finance a foreclosed property, you’ll have lower monthly amortizations.
Second, Pag-IBIG foreclosed properties are a great investment. Buying one gives you an opportunity to buy low and sell or rent high, not to mention that the value of real estate increases over time.
However, there are risks to buying a foreclosed home. Pag-IBIG acquired assets are sold on an “as is, where is” basis, which may mean that some of them may have damaged parts. If a foreclosed property’s condition is less than ideal, you’ll have to spend money to fix it.
How to Find the List of Pag-IBIG Foreclosed Properties for Sale
There are two ways to view Pag-IBIG foreclosed property listings: by visiting the Pag-IBIG Fund office or checking the government agency’s website.
To get the list of foreclosed properties in the Pag-IBIG office, go to the second floor of JELP Business Solutions Center, 409 Shaw Blvd., Mandaluyong (for properties in Metro Manila) or the Pag-IBIG regional branch (for properties in the provinces). Coordinate with the Marketing and Sales-Acquired Assets Management Group.
How to View the List of Acquired Assets Under Negotiated Sale
If you prefer to see the list of acquired assets online, check the Pag-IBIG website’s Property Finder page. Listings of foreclosed properties in Metro Manila are updated regularly, while the list for properties in the provinces is updated every Friday.
How to find the list of Pag-IBIG acquired assets online:
Click the Property Finder link on the Pag-IBIG Fund website. This will take you to the Pag-IBIG Fund Acquired Assets page.
Click the Properties Under Negotiated Sale button.
Select your preferred location (province and municipality) and price range from the drop-down menu.
Click the Search button. All the available foreclosed properties for sale based on your search criteria will appear, including the following details:
– Subdivision name
– Branch account (the Pag-IBIG office that supervises the property’s sale)
– Contact numbers of the supervising Pag-IBIG branch
– Date when the property was last updated
Click the View Property/s link to view these specific details of the property you’re interested in:
– Exact location of the property (phase, block, and lot)
– Lot area
– Floor area
– Price (value of the property)
– Property type (house and lot / lot only / duplex / quadruplex / row house / townhouse)
– Status (occupied/unoccupied)
– Remarks (available/reserved)
Click the Print button if you want to have a copy of the foreclosed property’s information.
How to View the List of Acquired Assets for Auction
If you prefer to bid for an acquired property over getting one under negotiated sale, you can also view the list of foreclosed properties available for bidding on the Pag-IBIG website.
How to check the list of Pag-IBIG acquired assets for public auction:
Go to the Pag-IBIG Fund Acquired Assets page.
Scroll down the page to find the Schedule of Public Auctions section, which is divided into those with discount and no discount. The property listings are grouped into either the NCR branch or provinces.
Click on your preferred bidding schedule and venue for the location of the property. A PDF file will pop up, which contains the bidding guidelines and listing of foreclosed properties up for auction.
Read the guidelines and scroll further to find the listing. Take note of these details of the foreclosed property you’re considering to buy:
– Property number
– Property location
– Type of property
– Transfer Certificate of Title (TCT)
– Lot area
– Floor area
– Minimum bid
– Appraisal date
How to Bid for Pag-IBIG Foreclosed Properties
Planning to join a Pag-IBIG auction to buy an acquired asset? Here are the general instructions on making a bid for a foreclosed property.
1. Prepare the Bidding Requirements
Before you participate in the public bidding for Pag-IBIG acquired assets, gather all the requirements first and put them in a sealed envelope.
Two copies of accomplished Offer to Bid form
Bidder’s bond equivalent to 10% of your proposed bid price for your desired property (paid either in cash at a Pag-IBIG office or manager’s check payable to Pag-IBIG Fund)
Accomplished Special Power of Attorney and Acknowledgment form (if you can’t attend the bidding and will have an authorized representative to bid on your behalf)
2. Check for Any Erratum Posting on the Pag-IBIG Website
Five days before the scheduled auction, visit the Pag-IBIG Acquired Assets page to check if there’s any erratum posted on the property listing under the auction you’ll be attending.
An erratum contains the list of properties that are recently removed from the list for public bidding. Usually, these properties are excluded from bidding because they’re already sold to a direct buyer before the auction.
It’s important to verify that the foreclosed property you want to buy is still available for bidding.
3. Attend the Scheduled Bidding
Approach the secretariat or technical working group at the entrance of the venue to register and submit your sealed bid.
After the deadline of bid submission, the sealed bids will be opened. The highest bidder will be announced the winner.
If you win the bid, your bidder’s bond (10% of the bid price) will automatically become your down payment for the foreclosed property. You can pay the remaining 90% of the bid amount in cash, in installment, or through Pag-IBIG housing loan.
If you lose the bid, you’ll get your bidder’s bond back with an acknowledgment receipt.
How to Buy Pag-IBIG Acquired Assets Under Negotiated Sale
1. Reserve the Foreclosed Property
Go to the Pag-IBIG office that’s in charge of the sale of the acquired asset and present these requirements for making the reservation:
Valid ID (any of the following):
HDMF-Pag-IBIG Overseas Program (POP) ID
Senior citizen ID
Proof of income:
Local employees: Latest one-month payslip
Self-employed: Income tax return (ITR) / Barangay Permit / Business Permit
OFWs: Active employment contract / Certificate of employment and compensation
To reserve your chosen property, fill out the Reservation Form and Offer to Purchase Form where you’ll indicate your preferred mode of payment. You may choose to purchase through cash, installment, or availing of the Pag-IBIG housing loan. These payment modes have different discount rates and payment terms.
Up to 12 months, with a 12% interest rate per annum
Pag-IBIG Housing Loan
Up to 30 years (Borrower’s age shall not exceed 70 years old at the loan maturity date.)
You’ll also be required to pay the PHP 1,000 non-refundable reservation fee.
2. Submit the Requirements for Purchase of Pag-IBIG Acquired Assets (For Housing Loan Only)
This is an additional step for buyers who will purchase a foreclosed property through a Pag-IBIG housing loan.
Within 30 calendar days from paying your reservation fee, submit all the required documents to the Pag-IBIG office.
Two copies of accomplished Buyer’s Information Sheet with 1×1 ID photo attached to each form
Photocopy (front and back) of valid ID of principal buyer and spouse, co-buyer and spouse, if applicable
Proof of income (any of the following):
– Local employees: Notarized certificate of employment and compensation / Latest one-month payslip / Latest ITR
– Self-employed: ITR, audited financial statements, and official receipt of tax payment / Commission vouchers / Bank statements or passbook for the last 12 months / Lease contract and tax declaration / Certified true copy of Transport Franchise / Certificate of engagement
– OFWs: Employment contract / Certificate of employment and compensation / ITR filed with host country/government
Also, pay the PHP 2,000 processing fee and PHP 100 documentary stamp tax.
3. Receive the Notice of Approval of Loan
If your housing loan is approved, you’ll be issued a Notice of Approval of Loan and Disclosure Statement on Loan Transaction. Within 30 days from receiving these documents, pay the one-year advance insurance premiums.
4. Sign and Submit Mortgage Documents
Submit a signed and notarized Deed of Conditional Sale and other mortgage documents that certify your housing loan from the Pag-IBIG Fund.
5. Make Your Payment
Cash purchase: Pay the property’s net selling price in full within 30 calendar days from your reservation date.
Installment purchase: Pay the net selling price in 12 monthly installments.
Purchase through housing loan: Start making your monthly amortization payments after 30 days from loan takeout date. Use the Pag-IBIG housing loan calculator to compute your monthly amortization.
Read more related articles:
Tips on Buying Foreclosed Properties in Pag-IBIG
1. Inspect the Property First
Before you make a reservation or purchase a foreclosed property, be sure to visit the unit to check for structural damage and anything that needs fixing. Verify also the provided information on the property, such as its lot and floor area.
Assess the property’s environment (i.e., Is it peaceful? Is it prone to flooding?) and accessibility to public transport, malls, schools, hospitals, etc.
You may visit the property with an engineer or real estate expert to help you evaluate the property and identify the necessary repairs and improvements.
Proceed with the bidding or reservation of the property only when you’re sure that it fits your desired qualities.
2. Be Personally Present During Reservation
The Pag-IBIG Fund requires the buyer’s personal appearance when making a reservation of an acquired asset. Buyer’s appearance is still required for reservations under real estate agents or brokers.
Pag-IBIG accepts the Special Power of Attorney only if the principal buyer is an OFW who’s currently abroad.
3. Transact with Pag-IBIG Employees Only
Beware of fixers and fake agents or employees of the Pag-IBIG Fund. Make your payments only in the Pag-IBIG office. Even agents and brokers are prohibited from collecting or accepting payments for the purchase of Pag-IBIG acquired assets.
4. Avoid Occupied Properties
The Pag-IBIG Acquired Assets page specifies which foreclosed properties are occupied or vacant. Buying or bidding on an occupied property can cause you trouble later on if the occupants refuse to vacate it.
Pag-IBIG acquired assets are a worthy investment for both homebuyers and real estate investors in the Philippines. You can find the perfect property for you, as long as you understand the entire process of bidding or purchasing a foreclosed property from Pag-IBIG.
The post Pag-IBIG Acquired Assets: Homebuyer’s Guide to Availing Foreclosed Properties appeared first on Moneymax.