THE Home Mutual Development Fund or the Pag-ibig Fund has urged delinquent housing borrowers to avail themselves of the benefits of a new law that condones penalties on delinquent borrowers.
Speaking before the Association of Government Information Officers (AGIO) Forum, Victoria dela Peña, department manager of Pag-ibig Fund-Mandaue Branch, said that unlike the previous condonation program, where a delinquent housing borrower was required to put up as down payment 10 percent of the total debt or arrears, Republic Act 9507 does not require any payment.
“This is their only way to save their homes from foreclosure. They must act now. This is their last chance. The law is good only for 18 months, starting October 2008,” said dela Peña.
She added that the arrears will also be reduced because a portion of the condonable interest was removed.
“Within the first 12 months, 10 percent of the overdue interest will be condoned,” Dela Peña said.
However, the terms of the condonation availment will depend on the age of the delinquent borrower.
If the borrower is 40 years old, he or she could avail himself or herself of the 25-year term. If he is 50 years old, the term will be 15 years.
“They really have to avail themselves of this opportunity under RA 9507. They may approach the Pag-ibig office immediately for guidance,” dela Peña said.
She said that if a delinquent borrower will not apply for condonation under this new law, he or she will definitely lose the foreclosed house.
Interest
Meanwhile, engineer Alex Patiño, chief of the housing loans division of Pag-ibig Fund Mandaue Branch, said that effective
April 2009, the interests on loans were reduced under Circular 247 or the Pag-ibig Fund End-user Home Financing Program.
He said that loans ranging from P400,000 to P750,000 now have an interest of only six percent.
The monthly amortization will be at P2,400.
“While we increased the loan value, we retained the six percent interest rate,” Patiño said.
In the past, loan brackets such as P750,000 to P1 million; and P1 million to P1.25 million had a 10.5 percent interest rate.
These have been lowered to 8.5 percent and 9.5 percent, respectively.
The interest rate for loans ranging from P1.25 million to P2 million is still at 10.5 percent, while loans ranging from P2 million to P3 million have an interest of 11.5 percent.
Patiño said that under these new interest rates, borrowers can save a lot.
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