Question & AnswerQ&A (Republic Act No. 9507)
The title of Republic Act No. 9507 is the "Socialized and Low-Cost Housing Loan Restructuring and Condonation Act of 2008."
The main policy declared is to undertake a continuing program of urban land reform and housing that will make available affordable decent housing to underprivileged and homeless citizens, instituting a rational loan restructuring and condonation program considering creditworthiness and financial viability of lending institutions.
All socialized and low-cost housing loans with original principal amounts within HUDCC’s housing loan ceilings, which have at least three months of unpaid amortizations as of the law's effectivity, with government financial institutions involved in the National Shelter Program are covered.
No, there shall be no processing fee charged and no downpayment required for borrowers applying for restructuring under RA 9507.
All penalties and surcharges shall be condoned upon approval of the restructuring application.
The interest rate imposed on the restructured loan shall not exceed either the original loan interest rate or twelve percent (12%), whichever is lower.
Yes, the term of the loan may be extended beyond the original term to lower monthly amortizations but cannot extend beyond the borrower’s age reaching seventy (70) years old.
Yes, loan accounts such as those with no single payment since takeout, abandoned housing units, units occupied by third parties other than original owners or heirs, foreclosed accounts, and contracts covered by developers' buy-back guarantee are excluded.
The GFIs and housing agencies may proceed with foreclosure without newspaper publication but must post auction details in public places and notify borrowers by last known address.
Borrowers who pay on time are entitled to incentives which may include a reasonable discount on loan interest, determined by the boards of the GFIs and housing agencies.
An interagency committee headed by the Housing and Urban Development Coordinating Council (HUDCC) composed of all involved government institutions and agencies is tasked to issue the implementing rules within sixty days from effectivity.
The concerned government financial institution or housing agency may pursue foreclosure proceedings on the property.
Yes, legal heirs and successors-in-interest can assume loan payments provided they meet eligibility requirements, and mortgage redemption insurance proceeds have been applied if applicable.
The loan restructuring may be availed of only once, except in cases of force majeure affecting the borrower's ability to pay.
Yes, they are separate programs, and the borrower may choose which restructuring and condonation program to avail of.
They must submit an annual report on loan restructuring and condonation program availment to the Senate and House Committees on Urban Planning, Housing and Resettlement, and Housing and Urban Development respectively.
All laws, executive orders, rules or regulations inconsistent with RA 9507, including RA 8501, are repealed or modified accordingly.
The Act took effect fifteen (15) days after its complete publication in the Official Gazette or in at least two national newspapers of general circulation.