Are you interested in buying Pag IBIG Acquired Assets?
Do you know that you can have your own home at a cheaper price?
With Pag IBIG Acquired Assets, you can make your dream home a reality.
What you need to know about Pag IBIG Acquired Assets
Pag IBIG Acquired Assets are previously owned properties like house and lot or condominium units, which have been foreclosed because the original owner who availed of Pag-IBIG housing loan failed to pay the monthly amortizations.
Pag-IBIG Fund offers the foreclosed property to new buyers at a lower price through public auction or bidding to recover the unpaid loan and generate income for Pag IBIG Fund instead of just leaving the property vacant and deteriorating in value.
If the public bidding or auction of the foreclosed property doesn’t work, it will be put up for a negotiated sale where home buyers can get up to a 30% discount.
And this could be a good opportunity for you if you don’t have a lot of money or budget for your dream home.
How to Find Pag IBIG Acquired Assets Under Negotiated Sale
If you have time, you may visit the nearest Pag IBIG branch personally to inquire about Pag IBIG Acquired Assets or Foreclosed Properties.
But if you’re busy or you’re currently working or staying abroad, the best way to find Pag IBIG Acquired Assets is to check the Pag-IBIG Fund website.
Here are the steps on how to view the list of Pag IBIG Acquired Assets online:
- Go to Pag-IBIG Fund’s website at www.pagibigfund.gov.ph
- Click Property Finder
- Click Properties under Negotiated Sale
- To manually search for a Pag IBIG Acquired Asset, you may select the Location, Municipality, and Price Range by clicking the drop down menu.
- Then, click the Search button on the right side.
- The list of available foreclosed properties in the selected location will be shown on the page.
- Click View Property on the right side.
- To view more available properties, click the page number at the bottom.
- When you click View Property, you will see the details of the foreclosed property including the price.
- TIP: To avoid possible issues in the future, select the ones that are unoccupied.
If you want to see the complete list of Pag-IBIG Acquired Assets in a specific location, just leave the Price Range blank.
Listings of foreclosed properties in Metro Manila are updated regularly, while the list for properties in the provinces is updated every Friday.
How to Buy Pag IBIG Acquired Assets Under Negotiated Sale
Here are the steps when you decide to buy a Pag IBIG Foreclosed Property under Negotiated Sale:
Reserve the Foreclosed Property
Go to the Pag-IBIG branch that is in charge of the sale of the acquired asset and present following documents to make your reservation:
Valid ID (any of the following):
- Company ID
- Driver’s license
- PRC ID
- Postal ID
- Voter’s ID
- HDMF-Pag-IBIG Overseas Program (POP) ID
- IBP ID
- AFP ID
- OWWA ID
- Senior citizen ID
Proof of income:
- Local employees: Latest one-month payslip
- Self-employed: Income Tax Return (ITR) / Barangay Permit / Business Permit
- OFWs: Active employment contract / Certificate of employment and compensation
You may choose to purchase through cash, installment, or availing of the Pag-IBIG housing loan.
Please take note the these payment modes have different discount rates and payment terms.
Payment needed: You are required to pay the ₱1,000 non-refundable reservation fee.
For Housing Loan, submit the Requirements for Purchase of Pag-IBIG Acquired Assets
If you are planning to purchase a foreclosed property through a Pag-IBIG housing loan, you need to submit the following documents within 30 calendar days from paying your reservation fee:
- 2 copies of accomplished Buyer’s Information Sheet with 1×1 ID photo attached to each form
- Photocopy (front and back) of valid ID of principal buyer and spouse, co-buyer and spouse, if applicable
- Proof of income (any of the following):
- Local employees: Notarized certificate of employment and compensation / Latest one-month payslip / Latest ITR
- Self-employed: ITR, audited financial statements, and official receipt of tax payment / Commission vouchers / Bank statements or passbook for the last 12 months / Lease contract and tax declaration / Certified true copy of Transport Franchise / Certificate of engagement
- OFWs: Employment contract / Certificate of employment and compensation / ITR filed with host country/government
Payment needed: You need to pay the ₱2,000 processing fee and ₱100 documentary stamp tax.
Receive the Notice of Approval of Loan
If your housing loan is approved, you’ll be issued a Notice of Approval of Loan and Disclosure Statement on Loan Transaction.
Payment needed: You need to pay the one-year advance insurance premiums within 30 days from receiving the notice of approval documents.
Sign and Submit Mortgage Documents
Submit a signed and notarized Deed of Conditional Sale and other mortgage documents that certify your Pag-IBIG Fund housing loan.
Make Your Payment
There are 3 options to make your payment to Pag IBIG Fund for your home or property purchase:
Option 1: Cash purchase
- Pay the property’s net selling price in full within 30 calendar days from your reservation date.
Option 2: Installment purchase
- Pay the net selling price in 12 monthly installments.
Option 3: Purchase through housing loan
- Start making your monthly amortization payments after 30 days from loan takeout date.
- You may use the Pag-IBIG housing loan calculator to compute your monthly amortization.
Schedule of Public Auction for Pag IBIG Acquired Assets
If you want to bid for a foreclosed property instead of buying properties from the list of properties under negotiated sale, you can also view the list of foreclosed properties available for bidding on the Pag-IBIG website.
Here’s how to check the list of Pag-IBIG acquired assets for public auction:
- Go to Pag-IBIG Fund’s website at www.pagibigfund.gov.ph
- Click Property Finder
- Scroll down the page to see the Schedule of Public Auctions
- Schedule of Public Auction (No Discount)
- Schedule of Public Auction (With Discount)
- Group Sale
- Bulk Sale
- Click on the branch or schedule of auction to see the complete list of Pag IBIG Acquired Assets available for bidding and instructions on how to join the bidding.
- Scroll down the page to see the list of Pag IBIG Acquired Assets available for public bidding.
- You will also find the forms including the following:
- Offer to Bid
- Bidder Information
- Instruction to Bidders
- Special Power of Attorney
- If you wish to save the document or file, click the save (diskette icon) or right click the page, click Save us, and choose the location on your device where you want to save it.
- If you wish to print the document or file, click the printer icon on the page.
How to Bid for Pag-IBIG Foreclosed Properties
Follow this step-by-step guide if you are planning to join a public auction of Pag-IBIG foreclosed properties:
1. Prepare the Bidding Requirements
Before you join the public bidding for Pag-IBIG acquired assets, gather all the requirements first and put them in a sealed envelope.
- 2 copies of accomplished Offer to Bid form
- Bidder’s bond equivalent to 10% of your proposed bid price for your desired property
- Note: This is paid either in cash at a Pag-IBIG office or manager’s check payable to Pag-IBIG Fund
- Accomplished Special Power of Attorney and Acknowledgment form
- Note: You need to submit this if you can’t attend the bidding and authorize a representative to bid on your behalf
2. Check for Any Erratum Posting on the Pag-IBIG Website
Pag IBIG Fund advises interested buyers to visit the Pag-IBIG Acquired Assets 5 days before the scheduled auction page to check if there’s any erratum posted on the property listing.
An erratum contains the list of properties that are recently removed from the list for public bidding.
Usually, these properties are excluded from bidding because they’re already sold to a direct buyer before the auction.
It’s important to verify that the foreclosed property you want to buy is still available for bidding.
3. Attend the Scheduled Bidding
Go to the venue of the public auction, then approach the secretariat or technical working group at the entrance of the venue to register and submit your sealed bid.
The sealed bids will be opened after the deadline of bid submission.
The highest bidder will be announced the winner.
If you win the bid:
- Your bidder’s bond (10% of the bid price) will automatically become your down payment for the foreclosed property.
You can pay the remaining 90% of the bid amount in cash, in installment, or through Pag-IBIG housing loan.
If you lose the bid:
- You’ll get your bidder’s bond back with an acknowledgment receipt.
Pros and Cons of Buying Foreclosed Properties
Buying Pag-IBIG acquired assets comes with pros and cons. Therefore, you need to weigh the good and the bad before making the final decision to purchase that property.
Here are some of the pros and cons that might help you decide whether or not you should purchase that property:
1. Foreclosed Properties are offered at a lower than market value price
Most real estate properties appreciate in value over time. This means over the years, the value of the property will typically increase.
If you purchase a Pag IBIG Acquired Asset at a lower than the average market price, it will translate into bigger returns when you sell it.
What some investors and business-minded people do is that they purchase acquired assets at a cheaper price, make improvements to the property, then they sell it at a much higher price. And they’re able to take home big profits.
2. Foreclosed Properties are available in different locations
Pag-IBIG Fund has different branches nationwide and they offer foreclosed properties in different locations.
You have plenty of options to choose from. Whether you prefer to buy a property in the metro or in the province, just visit the Pag-IBIG Fund website and you’ll surely find one or more that might fit your need and budget.
1. Foreclosed Properties are not brand new
Since this is a foreclosed property, this is not brand new. Some properties may have damages or may need some improvement before you could move in.
2. Possible conflict with previous owners
You are not the first owner of the property. Someone else used to own and stay in this property before it was foreclosed. It’s okay, if the property is unoccupied now. However, if the property that you’re eyeing is still occupied, you might get into trouble later on if the previous owner refuse to leave.
TIPS and THINGS to consider before purchasing a Foreclosed Property
1. Inspect the Foreclosed Property personally
Pag IBIG Acquired Assets are sold on an “AS IS, WHERE IS” basis which may mean “what you see is what you get.”
Don’t rely on photos and descriptions as they can be misleading sometimes. It may look good in the photos, but does it really look good and nice in real life?
Purchasing a property is not just about the unit itself, but also its surrounding area. The unit may actually be in perfect condition, but how about the common areas, the corridors, the facilities, the neighborhood, or the management?
Make time to inspect the property personally before making a reservation or paying the down payment.
2. Ask the Experts
If you’re planning to purchase a commercial property, it’s best to have an engineer or an architect assess the place with you.
Determine the extent of the work that needs to be done and the estimated cost in order to turn the property into what you want it to be.
This will help you decide whether the property is worth buying or not.
3. Determine the reason for the foreclosure
If possible, try to meet with the previous owner or the neighbors to know the exact cause of the foreclosure.
The reason may be related to the property itself or the management body of the property, which you might discover when you speak to the owner or with the management staff.
4. Calculate your costs
Aside from monthly payments, you also need to consider incidental expenses such as local taxes, registration fees, and repair and maintenance costs.
You might thought that you purchased a cheap property, only to find out that you’ll need to pay more to repair the house. It will become a financial burden to you.
If you buy a property via a Pag-IBIG housing loan, you can use an amortization calculator to know your monthly payments.
5. Inquire and transact directly with Pag-IBIG Fund
Real estate brokers and agents are not allowed to accept or collect any payments including down payments and reservation fees. Inquire and pay directly to the Pag-IBIG Fund branch only to avoid any issues.
Is it worth investing in Pag IBIG Acquired Assets?
Buying a foreclosed property can be worth an investment, but you have to do your due diligence before you make the decision to purchase.
Weigh the pros and cons, know your budget, inspect the property, and seek an expert’s advise. You’re off to having your dream house soon.
How to Contact Pag IBIG Fund?
- Pag IBIG Fund Hotline: (02) 724-4244
- Pag IBIG Fund Website: https://www.pagibigfund.gov.ph/
- Email Address: firstname.lastname@example.org