Pag-IBIG Fund Dacion en Pago Program Guidelines

Available to borrowers in default on their housing loan due to inability to pay.
All collection efforts must have been exhausted prior to application.
Applicable to retail housing loan accounts.

The property must be mortgaged with Pag-IBIG Fund.
Loan account must be in default.
Dacion is accepted regardless of the property's appraised value.
The Dacion fully satisfies the borrower’s outstanding loan.
Property must be free of liens or encumbrances except those in favor of Pag-IBIG.
If the property has been auctioned, the Certificate of Sale should not yet be registered.
Property must be vacated before executing the Deed of Dacion en Pago.
Failure to meet these conditions invokes normal foreclosure rules.

TAV is applied to outstanding loan balance before Dacion execution.
Exceptions when appraised value covers the loan or prior TAV offsets exist.
With existing Short Term Loans, TAV applied is reduced by outstanding STL plus estimated penalties and interest.

Borrowers must submit all requirements within 30 calendar days from the Letter of Intent submission.
Failure to comply results in foreclosure endorsement or continuation.

Approval depends on outstanding loan balance including principal, unpaid interest, insurance premiums advanced by Pag-IBIG, and penalties.
For accounts in foreclosure, attorney's fees (10% of loan balance) and foreclosure expenses are included.
Attorney’s fee excludes cases handled internally by Pag-IBIG lawyers.

Execution of a Deed of Dacion en Pago conveying property ownership to Pag-IBIG Fund.
This deed signifies full satisfaction of the outstanding housing loan obligation.

All expenses and taxes for title consolidation under Pag-IBIG’s name are borne by the Fund.
Borrowers subjected to Dacion are generally ineligible for new housing loans, except under meritorious conditions.
Pag-IBIG may require additional documentation as necessary.