Dreaming of owning a home but worried about the cost? Pag-IBIG Fund’s acquired assets could be your golden ticket! These are properties that have been foreclosed due to the original borrower’s inability to keep up with their Pag-IBIG housing loan repayments.
Also read: How to Apply for a Housing Loan from Pag-IBIG?
When borrowers default on their payments, Pag-IBIG typically provides an opportunity for them to buy back their property. However, if they are unable to do so, these properties then become available for sale to the public. Often sold at prices lower than their current market value, these acquired assets present an affordable option for potential homeowners or property investors.
From residential homes and condominium units to commercial properties, Pag-IBIG offers a wide range of options to fit various needs and budgets. Plus, with flexible payment schemes and a streamlined process, purchasing these acquired assets is made even more convenient. So, if you’re looking for a way to own a home without breaking the bank, consider exploring Pag-IBIG’s roster of acquired assets. Remember, as with any investment, it’s important to do your research and understand the ins and outs of your purchase before diving in. Happy house hunting!
What is Pag-IBIG Acquired Assets?
A Pag-IBIG acquired asset refers to a property that has been foreclosed because the previous owner failed to pay their monthly amortizations for a housing loan from Pag-IBIG. When borrowers default on their payments, Pag-IBIG Fund usually allows them to repurchase their foreclosed property.
Why Consider a Pag-IBIG Acquired Assets?
Considering Pag-IBIG acquired assets as a property investment option can be beneficial for several reasons:
1. Affordability: One of the main attractions of Pag-IBIG acquired assets is their affordability. Since these properties have been foreclosed, they are often sold at prices lower than their market value, making them a cost-effective choice for buyers on a budget.
2. Variety of Options: Pag-IBIG’s list of acquired assets includes a wide range of properties, from residential houses and lots to condominium units, giving potential buyers numerous options to choose from based on their needs and preferences.
3. Investment Potential: Due to their lower cost, these properties can offer good investment opportunities. Buyers can choose to resell the property at a higher price or rent it out for a steady source of income.
4. Easy Payment Terms: Pag-IBIG offers flexible payment terms and financing options for their acquired assets, making it easier for buyers to manage their finances.
5. Transparent Process: Pag-IBIG follows a systematic and transparent process for selling its acquired assets, providing a secure and hassle-free transaction for buyers.
While there are several advantages to purchasing Pag-IBIG acquired assets, potential buyers should also be aware of the risks involved and conduct due diligence before finalizing a purchase. It’s important to inspect the property, understand its condition, and consider any additional costs that may arise from repairs or renovations.
Eligibility Criteria for Purchasing Pag-IBIG Acquired Assets
If you’re considering purchasing Pag-IBIG acquired assets, you’ll need to meet certain eligibility criteria:
1. Pag-IBIG Membership
- You need to be an active Pag-IBIG member. This means you should have made at least 24 monthly contributions. If you’re not yet a member, you can apply for membership before bidding for a property.
2. Legal Age
- You must be of legal age (at least 18 years old) at the time of purchase.
3. Capacity to Pay
- You should have the financial capacity to pay for the property. This will be assessed by Pag-IBIG based on your income, expenses, and other financial obligations.
4. No Outstanding Pag-IBIG Loans
- You should not have any outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower.
5. No Foreclosed Pag-IBIG Property
- You shouldn’t have had a Pag-IBIG property foreclosed, bought back due to foreclosure, or cancelled due to default.
6. No Loan in Arrears
- If you’ve previously availed of a Pag-IBIG loan, it should not be in arrears at the time of application.
Please note that these are general criteria and may vary slightly depending on specific circumstances. It’s best to check with Pag-IBIG for the most accurate and up-to-date information.
Also read: List of Subdivisions in Cebu City
How to Purchase Pag-IBIG Acquired Assets
Purchasing Pag-IBIG Acquired Assets can be done in three ways:
1. Individual Sale
Step 1: Check the list of Pag-IBIG Acquired Assets on the Pag-IBIG Fund website or visit the nearest Pag-IBIG Fund Housing Hub.
Step 2: Visit and inspect the location of the Pag-IBIG Acquired Assets you wish to buy.
Step 3: Register and fill out the Offer to Purchase/Offer to Bid form, submit it, along with the following:
- Copy of valid IDs of offeror/bidder and authorized representative.
- If the offeror/bidder cannot attend at the time of submission of the Offer to Purchase/Offer to Bid, they may designate a representative with an authorization letter for Negotiated Sale and Special Power of Attorney (SPA) for Sealed Public Auction Sale. The authorization letter is limited only to the submission of the Offer to Purchase.
- Proof of income document if the selected payment method is Long-Term Installment (LTI)
The opening of submitted Purchase Offers is based on the scheduled time and day published on the Pag-IBIG Fund website. Winning buyers will also be announced on their website.
Step 4: For Public Auction, the winning bidder will pay a Bid Bond equivalent to 5% of your Bid Offer (non-transferable/non-refundable) within three (3) days from receipt of Notice of Award.
- For Negotiated Sale, the winning offeror will pay a P1,000 reservation fee and down payment equivalent to 5% of your purchase offer (non-transferable/non-refundable) if the payment method is Short Term Installment or Cash within five (5) days from receipt of Notice of Award.
Step 5: Receipt of Notice of Approval of Sale.
Step 6: Sign, notarize, and submit the Deed of Conditional Sale and other loan proof documents to Pag-IBIG Fund.
Step 7: Begin paying monthly installments thirty (30) days after signing the Deed of Conditional Sale.
2. Bulk or Group Sale Process
Step 1: Browse the list of acquired assets on the website (Properties for Sale/Properties under Negotiated Sale) or visit the nearest Pag-IBIG Fund Housing Hub.
Step 2: Visit and inspect the location of the Pag-IBIG Acquired Assets you intend to purchase.
Step 3: Register and complete the Offer to Purchase Form, submit it and drop it in the Dropbox along with the following:
A. For Bulk Sale:
- OFFER TO PURCHASE (HQP-AAF-212) – For Individual Buyer
- OFFER TO PURCHASE (HQP-AAF-213) – For Juridical/Company Buyer
For Group Sale:
- OFFER TO PURCHASE (HQP-AAF-213) – For Juridical/Company Buyer
B. Copies of valid IDs of the offeror and the authorized representative
C. If the offeror cannot attend at the time of dropping off their Purchase Offer form, they may designate a representative with an authorization letter/Special Power of Attorney (SPA). The authorization letter is limited only to the submission of the Purchase Offer Form.
D. Proof of income document if the selected payment method is Long-Term Installment (LTI)
Sample Purchase Set with Aggregate Gross Selling Price of Ten Million Pesos (₱10,000,000.00).
| Desired Properties | Gross Selling Price* | Offered Price** |
|---|---|---|
| Property A | ₱3,000,000 | ₱3,100,000 |
| Property B | ₱3,000,000 | ₱3,100,000 |
| Property C | ₱4,000,000 | ₱4,100,000 |
| Total | ₱10,000,000 | ₱10,300,000 |
The opening of submitted Purchase Offers is based on the scheduled time and day published on the Pag-IBIG Fund website. The winning buyers will also be announced on their website.
Step 4: For Group Sale: The winning offeror or buyer will pay a P1,000 Reservation Fee (non-transferable/non-refundable) within five (5) days from receipt of Notice Award.
For Bulk Sale: The winning offeror or buyer will pay the following within five (5) days from receipt of Notice of Award. The Cash Bond will be returned or refunded after full payment has been made:
- Cash – 5% down payment
- Short Term Installment (STI) – 5% down payment and P5,000.00 Cash Bond per unit
Step 5: Receipt of Notice of Approval of Sale.
Step 6: Sign, notarize, and submit the Deed of Conditional Sale and other loan proof documents to Pag-IBIG Fund.
Step 7: Start making monthly payments thirty (30) days after signing the Deed of Conditional Sale.
3. Sale Via Memorandum of Agreement with Project Proponent
Step 1: Check the list of Pag-IBIG Acquired Assets on the Pag-IBIG Fund website (Properties for Sale/Properties under Negotiated Sale) or visit the nearest Pag-IBIG Fund Housing Hub.
Step 2: Visit and inspect the location of the Pag-IBIG Acquired Assets you wish to purchase.
Step 3: Interested project proponents (Developers, Contractors, Employers, Local Government Units, and Individuals) can download a copy of the Checklist of Requirements (HQP-AAF-077) from the Pag-IBIG Fund website.
Step 4: Complete the required documents including eligibility requirements, technical, and financial proposals within thirty (30) days from the date of publication of the “Invitation to Submit Project Proposals”. Submit these along with the Letter of Intent (HQF-AAF-078) to the branch covering the published Invitation to Submit Project Proposal.
Step 5: Wait for a call or text/email about the result of the submitted proposal. The said result will also be announced on the official website at www.pagibigfund.gov.ph.
Step 6: Winning project proponents, together with Pag-IBIG Fund, will sign a Memorandum of Agreement containing the terms and conditions regarding the rehabilitation, improvement, and sale of Pag-IBIG Fund’s Acquired Assets in accordance with its current rules and regulations.
Step 7: Start the rehabilitation or improvement of the acquired assets and sell them according to the agreed delivery schedule.
Also read: How to Make Pag-IBIG Payments Online
How to Place a Bid for Foreclosed Properties Under Pag-IBIG
If you’re interested in acquiring a foreclosed property from a Pag-IBIG auction, here’s a simplified step-by-step guide on how to go about it:
1. Gather Your Bidding Requirements
Before attending the public auction, ensure you have all necessary documents. These should be placed in a sealed envelope and include:
- Two filled-out copies of the Offer to Bid form
- A bidder’s bond, which is 10% of your proposed bid price for the property you are interested in. This can be paid in cash at a Pag-IBIG office or through a manager’s check made payable to Pag-IBIG Fund.
- If you are unable to attend the auction, you’ll need a completed Special Power of Attorney and Acknowledgment form authorizing a representative to bid on your behalf.
2. Check for Any Updates on the Pag-IBIG Website
Five days before the scheduled auction, visit the Pag-IBIG’s acquired assets page. Here, you’ll find any erratum posts that indicate properties removed from the auction list. These properties have typically been sold to a direct buyer prior to the auction. Make sure the property you’re interested in is still available for bidding.
3. Attend the Auction
On the day of the auction, register and submit your sealed bid to the secretariat or technical working group at the venue. After the deadline for bid submission, all sealed bids will be opened, and the highest bidder will be declared the winner.
- If you win, your bidder’s bond (10% of the bid price) will be considered as your down payment for the property. The remaining 90% can be paid in cash, installments, or via a Pag-IBIG housing loan.
- If you don’t win, your bidder’s bond will be returned to you along with an acknowledgment receipt.
This process allows you to potentially acquire a property at a lower cost, but remember to do thorough research and inspection before making a bid.
List of Requirements
1. For Self-Employed Individuals:
Basic Requirements
- Completed Buyer’s Information Sheet (2 copies) with recent 1×1 ID photo (2 copies)
- One (1) valid ID (Photocopy, back to back) of Principal Buyer and Spouse, Co-Buyer and Spouse, if applicable
- Proof of Income (any of the following):
- For Owned Business: Certified true copy of Income Tax Return (ITR) with Financial Statement and copies of official receipt of tax payments, DTI Registration/Mayor’s Permit/Business Permit
- Commission Based: Commission Vouchers reflecting the issuer’s name and contract details (for the last 12 months)
- Drivers: Certified True Copy of Transport Franchise issued by appropriate government agency
- Foreign Remittances and Pensions: Bank Statements or passbook for the last 12 months
- Rental Payments: Copy of lease Contract and Tax Declaration
- Sari-sari Store/Mini Groceries, Sub-Contractor, On call Maintenance, Technician: Brgy. Certificate/Clearance and Properly Accomplished Certificate of Engagement duly notarized
Additional Requirements
- Copy of Frequently Asked Questions (FAQ’s) with signature
- Photocopy of P1,000.00 Reservation Fee Receipt
- Photocopy of 1 valid ID of the signatory in the Certificate of Engagement
- Insurance Coverage (if applicable only)
- Health Statement Form (Medical Questionnaire): For borrowers over 60 years old and for borrowers up to 60 years old, if loans are over P2.0M to P6.0M
- Health Statement Form (Medical Questionnaire) and Copy of the result of medical examination conducted prior to assignment overseas as required by the employment agency: For OFW borrowers over 60 years old
2. For Locally Employed Individuals:
Basic Requirements
- Completed Buyer’s Information Sheet (2 copies) with recent 1×1 ID photo (2 copies)
- One (1) valid ID (Photocopy, back to back) of Principal Buyer and Spouse, Co-Buyer and Spouse, if applicable
- Proof of Income (any of the following):
- Notarized Certificate of Employment and Compensation (CEC) indicating the gross monthly income and monthly allowances or monthly benefits received by the employee
- Certified One (1) Month Payslip, within the last three (3) months prior to date of loan application
- Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached BIR Form No. 2316, stamped received by the BIR
Additional Requirements
- Copy of Frequently Asked Questions (FAQ’s) with signature
- Photocopy of P1,000.00 Reservation Fee Receipt
- Insurance Coverage (if applicable only)
- Health Statement Form (Medical Questionnaire): For borrowers over 60 years old and for borrowers up to 60 years old, if loans are over P2.0M to P6.0M
3. For Overseas Filipino Workers (OFW):
Basic Requirements
- Completed Buyer’s Information Sheet (2 copies) with recent 1×1 ID photo (2 copies)
- One (1) valid ID (Photocopy, back to back) of Principal Buyer and Spouse, Co-Buyer and Spouse, if applicable
- Proof of Income (any of the following):
- Employment Contract
- Certificate of Employment and Compensation (CEC)
- Income Tax Return filed with Host Country/Government
Additional Requirements
- Copy of Frequently Asked Questions (FAQ’s) with signature
- Photocopy of P1,000.00 Reservation Fee Receipt
- Special Power of Attorney (SPA) notarized prior to date of departure. For OFW member abroad, a SPA notarized by a Philippine Consular Officer, or SPA notarized by a local notary (of the country where the member is working) but duly authenticated by the Philippine Consulate
- The Fund may also require any or a combination of the following documents: Payslip indicating income received and period covered, Valid OWWA Membership Certificate, Passport with appropriate visa (Working Visa), Residence card/permit, Bank remittance record, Professional License issued by Host Country/Government
- Insurance Coverage (if applicable only)
- Health Statement Form (Medical Questionnaire): For borrowers over 60 years old and for borrowers up to 60 years old, if loans are over P2.0M to P6.0M, and for OFW borrowers over 60 years old
List of Accepted IDs for Pag-IBIG Acquired Assets
When applying for a Pag-IBIG Acquired Asset, you will need to provide a valid ID for identification purposes.
Government-issued picture IDs:
- Present Company ID
- Government Services Insurance System (GSIS) E-Card
- Social Security System (SSS) Card
- Professional Regulation Commission (PRC) ID
- Driver’s License
- Passport (issued by Philippine or Foreign Government)
- Government Office and GOCC ID: Armed Forces of the Philippines (AFP) ID & Pag-IBIG Loyalty Card
- Integrated Bar of the Philippines (IBP) ID
- Voter’s ID
- Postal ID
- Overseas Workers Welfare Administration (OWWA) ID
- Senior Citizen Card
Remember to provide clear, readable copies of your chosen valid ID when submitting your application.
Potential Risk and Challenges
While purchasing a Pag-IBIG Acquired Asset can be financially advantageous, it also comes with potential risks and challenges. Here are some that buyers should be aware of:
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Property Condition: These properties are sold on an “as-is, where-is” basis. This means that buyers take on the risk of any damage or repairs needed. It’s crucial to inspect the property thoroughly before purchase.
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Occupancy Issues: Some acquired assets may still be occupied by the former owners or illegal settlers. Evicting them might pose a challenge and could potentially involve legal proceedings.
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Location and Accessibility: Some properties may be located in less developed or remote areas with limited access to public transportation, schools, hospitals, and commercial establishments.
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Incomplete or Missing Documents: There may be instances where the property’s documents are incomplete or missing, which could lead to complications in the transfer of ownership.
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Resale Value: Depending on the condition and location of the property, reselling it in the future could be difficult and may not generate a significant profit.
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Processing Time: The process of purchasing an acquired asset could take longer than buying a property in the traditional way due to the necessary paperwork and approval from the Pag-IBIG Fund.
Before deciding to buy a Pag-IBIG Acquired Asset, it’s advisable to consult with real estate professionals, conduct a thorough property inspection, and consider all potential risks and challenges.
Tips for Buying Acquired Assets from Pag-IBIG
Buying acquired assets from Pag-IBIG can be a great opportunity, but it’s essential to approach it with care.
Here are some tips to help you navigate this process:
- Do Your Research: Understand the process of purchasing an acquired asset from Pag-IBIG. Familiarize yourself with the terms and conditions, payment options, and potential risks involved.
- Inspect the Property: Always visit and inspect the property before making a bid. Check its condition, the neighborhood, accessibility, and if there are any occupants. This will help you assess whether the property is worth the investment.
- Check for Legal Issues: Make sure that there are no legal issues tied to the property. This might include disputes over ownership or occupancy issues.
- Prepare Your Finances: Make sure you have enough funds to cover all the costs involved, including the down payment, remaining balance, repair costs, and any potential legal fees.
- Participate in Bidding: If you’re interested in a property, participate in the public auction. Prepare all necessary documents and ensure you understand the bidding process.
- Consider Resale Value: Think about the property’s potential resale value. Factors like location, property condition, and market trends can affect its future value.
- Seek Professional Advice: Consider consulting with a real estate professional or a lawyer to help guide you through the process and address any concerns you may have.
- Be Patient: The process of purchasing an acquired asset can take time due to paperwork and approvals needed. Be patient and keep track of your application’s progress.
Remember, while acquiring assets from Pag-IBIG can be a good investment, it’s crucial to do your due diligence to avoid potential pitfalls.
VIDEO: PANO SUMALI? | STEP BY STEP PAGIBIG BIDDING | MURANG FORECLOSED PROPERTIES | PUBLIC AUCTION
Frequently Asked Questions
1. What is a Pag-IBIG Acquired Asset?
A: A Pag-IBIG Acquired Asset is a property foreclosed and repossessed by the Pag-IBIG Fund due to the original owner’s inability to continue with their housing loan repayments.
2, How can I purchase a Pag-IBIG Acquired Asset?
A: You can purchase these assets through public auctions or negotiated sale. The properties are listed on the Pag-IBIG Fund website, where you can also find information about upcoming auctions.
3. What does “as-is, where-is” mean?
A: It means that the property is sold in its current state and location. Buyers take on the risk of any damage or repairs needed.
4. Can I inspect the property before buying?
A: Yes, it’s strongly recommended to visit and inspect the property before making an offer. This helps you assess its condition and value.
5. What if the property is still occupied?
A: Some acquired assets might still be occupied by former owners or illegal settlers. Evicting them could involve legal proceedings, which is a risk buyers should consider.
6. Are Pag-IBIG Acquired Assets cheaper than other properties?
A: Acquired assets are often sold at lower prices compared to market value, making them an affordable option. However, potential repair costs and legal issues should also be considered.
7. What are the payment options?
A: Buyers can choose to pay in cash or through a Pag-IBIG housing loan or installment.
8. Can anyone buy a Pag-IBIG Acquired Asset?
A: Yes, both members and non-members of Pag-IBIG Fund can purchase these properties.
9. What documents do I need to buy an acquired asset?
A: You’ll need valid IDs, proof of income, a completed Buyer’s Information Sheet, and other documents depending on your employment status.
10. What happens if I default on payment after buying an acquired asset?
A: If you fail to make payments, the Pag-IBIG Fund can foreclose the property, and it will become an acquired asset again. It’s crucial to understand your financial capability before making a purchase.
Summary
Owning your dream home is no longer an impossible feat. With Pag-IBIG Acquired Assets, you can finally make the first step to make your dream home a reality without having to spend too much money. The Home Development Mutual Fund, also known as Pag-IBIG, offers low-cost acquired assets that cater to all kinds of needs and budgets. This is the perfect opportunity for individuals or families who are looking for a practical and affordable way to acquire real estate properties.
Whether you’re a first-time buyer or someone who’s looking to invest, Pag-IBIG has a wide range of options available for you. So why not take advantage of this opportunity and start living in the home of your dreams today?
Contact Information
Website: pagibigfund.gov.ph
Phone: 02 8724 4244
Email: contactus@pagibigfund.gov.ph
Facebook Page: https://www.facebook.com/PagIBIGFundOfficialPage
