Question & AnswerQ&A (HDMF CIRCULAR NO. 300)
The program aims to assist delinquent borrowers/installment buyers in preserving their properties from foreclosure or cancellation by providing opportunities to update or restore their accounts under affordable terms, provide relief through penalty condonation, update delinquent accounts, and fully pay delinquent accounts.
All delinquent housing loan borrowers whose accounts are at least three months in arrears, except those classified under Window 1 accounts.
Penalty condonation may only be availed of until June 30, 2012. Applications filed after this date will only be eligible for loan restructuring without penalty condonation.
Borrowers must have the capacity to pay the restructured loan with monthly amortization not exceeding 40% of the family's net disposable income (NDI). The monthly income of family members up to the second civil degree of consanguinity and first civil degree of affinity may be considered as co-borrowers jointly liable. Legal heirs are exempted from the capacity to pay requirement but must register if not a Pag-IBIG member.
Borrowers who fail to file an application for loan restructuring, with or without penalty condonation, shall have their accounts endorsed to foreclosure or face cancellation of their Contract-to-Sell within thirty days from notice receipt.
Category A borrowers must pay at least 10% of total arrearages; Category B borrowers, which include those with multiple restructurings or abandoned units, must pay at least 20%; Category C involves adjusting loan amounts to satisfy the 40% NDI requirement with down payment covering the difference.
All penalties incurred by the borrower are condoned upon approval of the application, provided the application is filed on or before June 30, 2012.
Loans are payable within 30 years but not exceeding the difference between the borrower's present age and age 70. For tacked loans, the term considers the youngest co-borrower’s age with the same age limit.
Default occurs after failing to pay any three consecutive monthly amortizations or membership contributions. Penalties condoned are restored and become due with interest and penalties. The borrower's Total Accumulated Value (TAV) will be applied; if insufficient, foreclosure proceedings commence. The borrower may also settle obligations through dacion en pago.
Payments are applied in order: mandatory membership contributions, upgraded contributions, penalties, insurance premiums, various fees (e.g., HCF/HFC), interest, non-interest bearing principal, and interest-bearing principal.
Mortgage/Sales Redemption Insurance covers the principal borrower based on the loan amount. Fire Insurance and Allied Perils insurance must also be maintained with premiums based on the original loan.
Borrowers may prepay their loans in full or part without prepayment penalties. Excess payments can be applied as future amortizations or directly to the principal at the borrower’s request.