When You Have Arrears in Your PAG-IBIG Housing Loan
Having arrears in your PAG IBIG housing loan is a situation you do not want to be in. You are faced with the very real threat of losing your home through foreclosure.
Every now and then, people go through financial downturns as a result of unforeseen events: job loss, medical situation in the family, sickness, total disability or death of a breadwinner, a business that went bankrupt, college education that was not planned for, etc. As a result, money that should have gone to PAGIBIG housing loan payment was spent for the more pressing needs of the family.
So what do you do? I hope I could say “it’s easy”, but it is not. What YOU SHOULD NOT DO, however, is wish that the problem will go away. Trust me, it will not. In real life, no magic wand, no fairy godmother will appear to erase life’s complications. Any creditor, PAG IBIG included, will be wary of debtors who do not talk to them.
First things first:
- Go to the nearest PAG IBIG branch and ask for the latest Statement of Account (SOA).
- Your SOA will tell you how much you’ve owed PAG IBIG, how much should go to the principal payment, how much should be paid to the loan interest, when your last payment was made, and when you need to pay.
- When you go to PAG-IBIG, most likely, the desk person you speak to will ask what your plan is. Ask the hard questions. Remember that it’s your property on the line. In my experience dealing with PAG-IBIG, generally, their people have been pleasant and professional.
There are several potential solutions to this concern and each is a challenge.
- If you want to keep your property: Apply for Loan Re-Structuring. Be advised though that this may result to higher interest rate. Once re-structured, at least you are assured that you can still keep your property, as long as you follow the terms of the re-structuring arrangement.
- Should you decide that you have no other choice but to give up the property:
- PAG-IBIG accepts dacion en pago or payment-in-kind. Give up your property to PAG IBIG and PAG IBIG wipes away the debt. Do check if PAG IBIG shall do a property valuation before it alienates your property to satisfy your debt.
- Sell your property to a new buyer. This will go through a new selling process, and PAG IBIG will require a lot of steps and documentary requirements. It is hoped that you can make a tidy profit when you sell your property, enough to at least wipe away a little of the pain of losing your property and to start anew.
Do not let your PAG IBIG loan get to that all too painful point of foreclosure, when you have other recourse.
Jacqueline G. De Pedro
Director for Sales & Operations | Co-Founder
Real Estate Broker License
PRC Reg Certificate AA019210
PRC License No. 0019560