Question & AnswerQ&A (HDMF AMENDED RULES AND REGULATIONS IMPLEMENTING Republic Act No. 8501, 24 APRIL 2002)
Any housing loan borrower or, in case of death, his heirs or successors-in-interest who has unpaid penalties on his housing loan with the Fund as of the effectivity of R.A. 8501 and has not availed of any previous condonation program from government agencies involved in the National Shelter Program may apply.
All unpaid penalties of the housing loan shall be condoned after full payment by the borrower of all due and demandable arrearages composed of principal and interest.
Unpaid due and demandable arrearages, along with litigation, cancellation, and other expenses incurred by Pag-IBIG Fund that remain unpaid after partial payment, shall be restructured within the remaining term of the loan.
A delinquent borrower who hasn't previously availed TAV offsetting may opt to apply up to 40% of his TAV to the outstanding housing loan balance if he has an outstanding multi-purpose loan (MPL) or apply his entire TAV to his outstanding housing loan balance if there is no outstanding MPL.
The interest rate on the restructured loan shall be the same as the rate on the original loan.
In the event of default, the total outstanding housing loan shall immediately become due and demandable.
Applicants must submit a duly accomplished application form with an updated statement of account to any Pag-IBIG NCR Branch or Regional Office, may opt for TAV application to the loan balance, and pay fees including a P200 processing fee, first year premium for mortgage redemption, and notarization expenses.
Any member borrower or their heirs or successors-in-interest who failed to pay or failed to pay on time any obligation for justifiable reasons, including previous condonation availed, may apply for condonation of penalties subject to requirements.
Justifiable reasons include unemployment, total or partial disability certified by a physician, illness or death of the borrower or immediate family, death of the borrower, fire that gutted mortgaged property, defective or substandard housing units, failure of employer to remit amortizations, and other causes deemed justifiable by the Board of Trustees.
The unpaid arrearages shall be restructured within a maximum period of 20 years, but the term shall not exceed the difference between the borrower's age and age 65.
Applicants must have an annual family income not exceeding Three Hundred Thousand Pesos (P300,000.00), except those applying under the grounds of defective housing units.
No, once a member-borrower has availed penalty condonation under Rule IV, he and his heirs or successors-in-interest are disqualified from availing the penalty condonation again during the loan term or until full payment.
Only loans that have been in arrears for at least two (2) years are eligible, except those under certain justifiable reasons like unemployment or disability.