Question & AnswerQ&A (HDMF)
Any housing loan borrower, or in case of his death, his heirs or successors-in-interest who has unpaid penalties on his housing loan as of the effectivity of RA 8501 and has not availed any previous condonation program from government institutions involved in the National Shelter Program may apply. Additionally, borrowers who failed or refused to pay due to structurally defective or substandard housing units lacking basic amenities may also apply.
All unpaid penalties on the housing loan shall be condoned after the full payment of all due and demandable arrearages including principal and interest, or upon approval of the borrower's application for loan restructuring.
The unpaid due and demandable arrearages shall be restructured within the remaining period of the loan or over ten (10) years, whichever is higher, provided the borrower is at most age 65 at loan maturity. The restructured amount is payable together with the scheduled amortization for the original loan balance under the terms of the promissory notes.
Yes. A delinquent borrower may apply up to 40% of the member's TAV if he has an outstanding multi-purpose loan and has not offset his TAV against it. If no outstanding multi-purpose loan exists, the borrower may apply the full amount of TAV to reduce the outstanding loan balance.
The interest rate shall be the same as that on the original loan.
In case of default, the total outstanding housing loan immediately becomes due and demandable. Accounts that incur arrearages equivalent to six monthly amortizations shall be automatically foreclosed or cancelled.
Government service borrowers must remit monthly payments through salary deduction. Private sector borrowers are likewise required to remit payments through salary deduction if possible; otherwise, they must issue postdated checks on an annual basis. Retirees must also issue postdated checks annually.
Borrowers must submit a duly accomplished Application Form and an updated Statement of Account to any Pag-IBIG NCR Branch or Regional Office. They may choose to apply their Pag-IBIG savings/TAV to reduce loan balance. Loan arrearages to be restructured will be treated as an additional loan covered by an amendment to the LMA and a new promissory note, with borrower and co-borrower signatures required. Fees include a processing fee of P200, first year mortgage insurance premium, and registration/annotation/notarization expenses.
The right to apply for condonation of penalties may only be availed up to March 31, 2001.
They took effect fifteen days after publication in a newspaper of general circulation, following the signing date of October 27, 2000.