Are you interested in buying a Pag-IBIG-acquired asset this 2023? Pag-IBIG acquired assets are ideal for low-income earners wanting to own an affordable home and real estate investors wanting to maximize their returns.
Here's everything you need to know about how to buy foreclosed properties in Pag-IBIG, so you can make an informed buying decision.
A Pag-IBIG-acquired asset is a property that's been foreclosed because the original owner, who availed of a Pag-IBIG housing loan, failed to pay their monthly amortizations.
The Pag-IBIG Fund typically allows delinquent borrowers to buy back their foreclosed property when they default on their payments. It also offers this buy-back option to tenants who occupy and rent the foreclosed properties.
If the buy-back option doesn't work out, Pag-IBIG offers the foreclosed property to new buyers at a lower price via public bidding to recover the unpaid loan and generate income for the Fund.
If the sale via auction fails for a particular property, it’s then put up for Pag-IBIG negotiated sale in which buyers can get as much as a 30% discount.
Yes. Purchasing a foreclosed property from Pag-IBIG makes financial sense for two reasons.
First, Pag-IBIG-acquired assets are sold at prices below the market value . It enables you to afford a home if you don't have enough money to purchase a brand-new property. You'll have lower monthly amortizations if you avail of a Pag-IBIG housing loan to finance a foreclosed property.
Second, Pag-IBIG foreclosed properties are an excellent investment . Buying one allows you to buy low and sell or rent high. Not to mention that the value of real estate increases over time.
However, there are risks to buying a foreclosed home. These are sold on an "as is, where is" basis, meaning some may have damaged parts. If a foreclosed property's condition is less than ideal, you'll have to spend money to fix it.
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Are you looking for Pag-IBIG foreclosed properties in Quezon City or anywhere in Metro Manila and the provinces? You can view Pag-IBIG foreclosed property listings by visiting the Pag-IBIG Fund office or checking the government agency's website. [1]
To get the Pag-IBIG foreclosed properties list in the Pag-IBIG office, go to the second floor of JELP Business Solutions Center located at 409 Shaw Blvd., Mandaluyong (for properties in Metro Manila) or the Pag-IBIG regional branch (for properties in the provinces). Coordinate with the Marketing and Sales-Acquired Assets Management Group.
If you prefer to see the list of Pag-IBIG foreclosed properties for 2023 online, check the Pag-IBIG Fund Acquired Assets page. [2] Listings of foreclosed properties in Metro Manila are updated regularly, while the list for properties in the provinces is updated every Friday.
Here's how to find the list of Pag-IBIG acquired assets online:
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Wondering how to check foreclosed homes in Pag-IBIG that are up for auction? If you prefer to bid for an acquired property over getting one under negotiated sale, you can also view the list of foreclosed properties available for bidding on the Pag-IBIG website.
How to check the list of Pag-IBIG acquired assets for public auction:
Are you planning to join a Pag-IBIG auction to buy an acquired asset? Here are the general instructions for the Pag-IBIG bidding process.
Before participating in the Pag-IBIG house bidding, gather all the requirements and put them in a sealed envelope.
An important tip on how to bid in Pag-IBIG is checking whether the property you want to buy is still available for bidding. Five days before the scheduled auction, visit Pag-IBIG's Acquired Assets page to check for any erratum posted on the property listing under the auction you'll be attending.
An erratum contains the list of properties recently removed from the list for public bidding. Usually, these properties are excluded from bidding because they're sold to a direct buyer before the auction.
Once you have completed all the Pag-IBIG housing bidding requirements, you can register and submit your sealed bid. Approach the secretariat or technical working group at the entrance of the venue.
After the deadline for bid submission, the sealed bids will be opened. The highest bidder will be announced as the winner.
If you win the bid, your bidder's bond (at least 5% of the bid offer) will automatically become your down payment for the foreclosed property. You can pay the remaining 95% of the bid amount in cash, installments, or through a Pag-IBIG housing loan.
If you lose the bid, you'll get your bidder's bond back with an acknowledgment receipt.
The whole process of buying a foreclosed house and lot in Pag-IBIG can seem overwhelming. Here’s how to buy Pag-IBIG foreclosed properties under negotiated sale.
Go to the Pag-IBIG officer in charge of the sale of the acquired asset and present the following Pag-IBIG foreclosed properties requirements to make the reservation:
To reserve your chosen property, fill out the Reservation Form and Offer to Purchase Form, where you'll indicate your preferred mode of payment.
You may purchase through cash, installment, or Pag-IBIG housing loan. These payment modes have different discount rates. The shorter the payment term, the bigger the discount rate, as shown below.
You'll also be required to pay the ₱1,000 non-refundable reservation fee.
This is an additional step for buyers purchasing a foreclosed property through a Pag-IBIG housing loan.
Within 30 calendar days of paying your reservation fee, submit all the required documents to the Pag-IBIG office.
Also, pay the ₱2,000 processing fee and ₱100 documentary stamp tax.
If your housing loan is approved, you'll be issued a Notice of Approval of Loan and Disclosure Statement on Loan Transaction. Pay the one-year advance insurance premiums within 30 days of receiving these documents.
Submit a signed and notarized Deed of Conditional Sale and other mortgage documents certifying your Pag-IBIG Fund housing loan.
Cash purchase: Pay the property's net selling price in full within 30 calendar days from your reservation date.
Installment purchase: Pay the net selling price in 12 monthly installments.
Purchase through housing loan: Start making monthly amortization payments after 30 days from the loan takeout date. Use the Pag-IBIG housing loan calculator to compute your monthly amortization.
Before you make a reservation or purchase properties for sale/properties under negotiated sale or public auctions, be sure to visit the unit to check for structural damage and anything that needs fixing. Verify the provided information on the property, such as its lot and floor area.
Assess the property's environment (i.e., Is it a safe and peaceful community? Is it prone to flooding?) and accessibility to public transport, malls, schools, hospitals, etc. You may visit the property with an engineer or real estate expert to help you evaluate the property and identify the necessary repairs and improvements.
Proceed with the bidding or reservation of the property only when you're sure it meets your requirements.
The Pag-IBIG Fund requires the buyer's appearance when reserving an acquired asset. Buyer's appearance is still required for reservations under real estate agents or brokers. Pag-IBIG accepts the Special Power of Attorney only if the principal buyer is an OFW currently abroad.
Beware of fixers and fake agents or employees of the Pag-IBIG Fund. Make your payments only in the Pag-IBIG office. Even agents and brokers are prohibited from collecting or accepting payments for the purchase.
The Pag-IBIG Acquired Assets page specifies which foreclosed properties are occupied or vacant. Buying or bidding on an occupied property can cause trouble later if the occupants refuse to vacate it.
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Buying a property is a significant financial commitment. If you want to put your hard-earned money to good use, consider acquiring a Pag-IBIG foreclosed property.
Pag-IBIG acquired assets are a worthy investment for homebuyers and real estate investors in the Philippines. You can find the perfect property at your desired location within your budget if you understand the bidding process or how to buy foreclosed properties in Pag-IBIG.
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Venus has almost 20 years of combined experience in content marketing, SEO, corporate communications, and public relations. Most of her career was spent creating informative articles on personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. A hardcore Hallyu Tita, she loves bingeing Korean shows on Netflix while bonding with her cats. Follow Venus on LinkedIn.
