Guidelines Implementing the Pag-IBIG Fund Acquired Assets Disposal Program

May 17, 2012

HDMF CIRCULAR NO. 308-12

 

Pursuant to the approval of the HDMF Board of Trustees in its 283rd Board Meeting held last 24 February 2012, the Guidelines Implementing the Pag-IBIG Fund Acquired Assets Disposal Program are hereby issued:

I. Objective

The program aims to achieve the following objectives:

1. To properly identify which among the Real Estate Mortgages (REM) or Contract-to-Sell (CTS) accounts acquired by the Fund may be disposed of;

2. To immediately dispose of non-performing assets at the highest value possible through repurchase/direct purchase, negotiated sale, Rent-to-Own and other modes of disposal;

3. To assist highly delinquent borrowers to maintain their possession or use of the property under modified terms and conditions;

4. To provide shelter to Pag-IBIG members, whose current income is not sufficient to acquire housing units through direct purchase or housing loan, or who may not be eligible yet to avail of a housing loan.

II. Coverage

These guidelines shall cover all real estate properties acquired by the Fund by virtue of cancellation of Contract-to-Sell (CTS), voluntary surrender of property that is secured by CTS, Dacion en Pago or foreclosure of Real Estate Mortgage (REM). HaIATC

III. Prerequisites to the Modified Non-Performing Asset Resolution Program

1. All real estate properties acquired by the Fund by virtue of Absolute Deed of Assignment, Dacion en Pago or foreclosure of Real Estate Mortgage (REM) must be consolidated in the name of the Fund at point of endorsement to the Acquired Assets Management Group/Loans and Contributions Management and Recovery Division (LCMRD).

 For real estate properties formerly secured by a CTS and acquired by the Fund, they must be covered by a valid cancellation of CTS and must have Deed of Assignment/Deed of Assignment with Special Power of Attorney upon their endorsement to the Acquired Assets Department/LCMRD.

2. Adjacent acquired properties that previously secured a housing loan shall be disposed in the following manner:

2.1. If the adjacent lots do not have a residential unit standing on both lots, said properties shall be disposed of separately;

2.2. Adjacent lots that have a residential unit standing on both lots, or combined condominium units/row houses/town houses shall be disposed as one property.

3. The acquired properties available for sale shall be posted immediately in the Pag-IBIG premises and published in the Fund's website.

4. The selling price of the acquired assets shall be the appraised value less applicable discount. The selling price shall be rounded up to the nearest thousand. The appraised value of the acquired asset must not be more than two years as of date of disposal.

5. All acquired assets that are classified as A per valid appraisal report shall be compulsorily covered by fire insurance in an amount equivalent to the appraised value of the property. The Fund shall pay the fire insurance premiums until the property has been disposed of. cACHSE

6. At the beginning of every year, the Acquired Asset Management Group/Loan and Contributions Management and Recovery Division shall identify which of their inventory of acquired assets shall be offered for repurchase, direct purchase, sealed public bidding and negotiated sale through bulk sale, rent-to-own, memorandum of agreement with project proponents.

IV. Modes of Disposal of Acquired Assets

A. Repurchase/Direct Purchase

1. Repurchase shall refer to the reacquisition of the acquired assets by the former owner after it has been acquired by the Fund or consolidated in its name. Direct purchase shall refer to the acquisition of the acquired assets by a third-party occupant.

2. The Fund shall issue an Invitation to Purchase to the former owner/third-party occupant. The latter shall be given fifteen (15) calendar days from receipt thereof to exercise any of the following remedies:

2.1. Submit an Offer to Purchase, indicating his chosen mode of payment, and pay the non-refundable reservation fee of P1,000.00. The former owner/third party occupant shall be allowed to purchase the property through cash, installment or Pag-IBIG housing loan. Availment through Pag-IBIG housing loan shall be subject to the applicable program's eligibility criteria.

 Refer to Item IV-B Section 8 for details on the Modes of Payment.

2.2. The former owner/third-party occupant may apply for Rent-to-Own. Refer to Item IV-B Section 9 for details on Rent-to-Own.

3. The Fund shall grant the former owner/third-party occupant with the applicable discount as provided in Item IV-B Section 7 of these guidelines.

4. Once an offer has been made, the former owner/third-party occupant must comply with the terms and conditions of the chosen mode of payment within thirty (30) calendar days from payment of the reservation fee. Please refer to Item IV-B Section 8 for details on the Modes of Payment. cDaEAS

5. The former owner/third-party occupant shall be required to vacate the property within thirty (30) calendar days under any of the following circumstances:

5.1. Failure of the former owner/third-party occupant to submit an offer to purchase within fifteen (15) days from receipt of Invitation to Purchase;

5.2. Failure of the third-party occupant to apply for Rent-to-Own within fifteen (15) days from receipt of Invitation to Purchase;

5.3. Failure of the former owner/third party occupant to purchase the property or file for a Pag-IBIG Housing Loan within thirty (30) days from payment of reservation fee.

6. To facilitate the ejectment of the former owner/third-party occupant, a Writ of Possession shall be filed with the Sheriff or eviction proceedings shall be initiated in court.

B. Negotiated Sale

1. For occupied units, the Fund shall start accepting offers for negotiation under any of the circumstances listed in Item IV-A Section 5. For unoccupied units, acceptance of offers for negotiation shall commence upon reclassification of the account to ROPA Investments.

2. If the offeror is a representative of an individual, corporation, partnership or any form of entity, the representative must submit together with the required forms, a Special Power of Attorney to represent the individual or Secretary's certificate for juridical entities.

3. Offers to purchase an acquired asset shall be processed on a "first come, first serve" basis.

4. Reservation

4.1. The offeror shall submit his Offer to Purchase, which shall provide information on his chosen mode of payment, and shall be required to pay a non-refundable reservation fee of P1,000.00. Refer to Item IV-B Section 8 for details on the Modes of Payment. caTESD

4.2. The reservation fee shall form part of the processing fee in case the acquired asset will be purchased through Pag-IBIG housing loan. The balance in the Processing Fee of P2,000 shall be paid together with the incidental expenses.

4.3. Subsequent offers to purchase the same property shall be received and queued but the offerors shall not be required to pay the reservation fee yet.

5. In case the first offeror withdraws his offer to purchase or the sale of the acquired asset is cancelled, the next offeror shall be notified to purchase the subject property. He shall be required to submit his Offer to Purchase and pay the reservation fee within fifteen (15) calendar days from receipt of the notification.

6. Within fifteen (15) days from receipt of the reservation fee and Offer to Purchase, the Fund shall issue a Notice of Approval of Sale to the offeror.

7. Discount

 The Fund shall grant a discount depending on the chosen mode of payment:

Mode of Payment	Discount
Cash/Installment	30%
Housing Loan	25%

8. Modes of Payment

8.1. Upon receipt of the Notice of Approval of Sale, the buyer must abide by the terms and conditions of his chosen mode of payment.

8.2. No down payment shall be required from retail buyers. However, the buyer must pay the selling price through cash, installment or Pag-IBIG Housing Loan. AHCaES

8.3. Cash payment shall refer to the full payment of the amount due within thirty (30) calendar days from receipt of the Approval of Sale. No interest shall be charged for cash payments.

8.4. Installment

8.4.1. If the amount due will be paid for a period exceeding thirty (30) calendar days up to a maximum of twelve (12) months, it shall be charged with the prevailing market-based interest rate.

8.4.2. The selling price shall be made in equal monthly payments throughout the chosen term. The first monthly installment shall commence on the month immediately following the signing of Promissory Note.

8.4.3. The buyer shall be subject to a penalty of 1/20 of 1% of the amount due for every day of delay.

8.5. Pag-IBIG Housing Loan

8.5.1. The buyer shall be required to file his Pag-IBIG housing loan application and pay the following incidental expenses within thirty (30) calendar days from receipt of the Notice of Approval of Sale:

a. Processing fee of two thousand pesos (P2,000.00);

b. Equity, if applicable;

c. One year advance insurance premiums (sales redemption insurance as well as fire and allied perils insurance); CTAIHc

d. Transfer expenses to be incurred in the transfer of title in favor of the borrower and registration of Real Estate Mortgage (REM).

8.5.2. All pertinent provisions of the applicable Pag-IBIG housing loan program, except for the loan-to-collateral ratio, are hereby incorporated by reference. For the purchase of Pag-IBIG Fund acquired assets, the loan-to-collateral ratio shall be 100%.

 The applicable Pag-IBIG housing loan program by which the borrower's application will be processed shall be in accordance with their respective eligibility criteria. For the purchase of the property they previously owned, former owners shall be allowed to apply for a second housing loan.

8.5.3. After loan approval, the borrower shall take over the payment of real estate taxes on the property. To ensure that the real estate taxes are updated, the borrower shall be required to submit a copy of the official receipt of the real estate taxes paid for the preceding year not later than April 30 of the succeeding year. 

8.5.4. The monthly amortization shall be paid, whenever feasible, through salary deduction. It may also be paid through any of the following:

a. Post-dated checks

b. Over-the-counter payments

c. Auto-debit arrangement with banks

d. Other collection system that the Fund may implement in the future. HCITcA

8.5.5. The borrower who fails to pay the full monthly amortization and/or other loan obligations when due shall pay a penalty of 1/20 of 1% of the amount due for every day of delay.

8.5.6. The borrower's monthly payment shall thus be applied according to the following order of priority:

e. Penalties;

f. Upgraded Membership Contribution;

g. Insurance premiums;

h. Interest; and,

i. Principal.

8.6. Change in Mode of Payment

8.6.1. The retail buyer may be allowed to request for a change of mode of payment:

Change in Mode of Payment
Mode of Disposal	From	To
Repurchase/Direct	Cash	Installment
Purchase	Cash	Housing Loan
Negotiated Sale	Cash	Installment
	Cash	Housing Loan

8.6.2. The request must be filed not later than ten (10) working days prior to expiration of the approved payment period.

8.6.3. The discount shall be recomputed in case of change of mode of payment. HScaCT

8.6.4. The buyer shall be required to pay an interim interest, based on prevailing market-based interest rates, on the actual selling price from date of approval of sale up to the signing of the Promissory Note.

 Payment must be made on the date of signing of the Promissory Note.

9. Rent-to-Own

9.1. Pag-IBIG members who are not yet capable of purchasing the acquired asset in cash or installment, or may not yet be eligible for a Pag-IBIG housing loan may opt to acquire the property via Rent-to-Own (RTO) scheme.

 An applicant for the RTO Program must be a Pag-IBIG member at the time of application. The following, however, are excluded from participating in the RTO program:

9.1.1. Former lessee under the RTO program for at most 2 times and had not exercised his option to purchase the property;

9.1.2. With existing Pag-IBIG housing loan.

9.2. Upon approval of the application, the member shall enter into a Contract of Lease with Option to Purchase with the Fund. The term of the lease shall be for a period of three (3) years.

9.3. Upon signing of the Contract of Lease, the lessee shall be required to pay one month advance and two months security deposit. The security deposit shall not be applied to monthly rentals during the term of the lease. It shall be used to cover unpaid bills, as well as the expenses necessary to repair any loss or damage to the property (except normal wear and tear) attributable to the fault or negligence of the Lessee once the Contract of Lease expires and he is required to vacate the property. HTScEI

9.4. Monthly rental shall be based on the prevailing rental rate in the area, which shall not be lower than One Thousand Pesos (P1,000.00). Rental payments shall be treated as income.

 The Lessee shall, without need of demand, pay the monthly rental in cash or check to any Pag-IBIG branch or office or to any authorized Pag-IBIG collecting agent on or before the 5th day of the month following the execution of the Contract of Lease and every month thereafter. Should the due date fall on a non-working day, the monthly rental shall be paid on the first working day after the due date.

9.5. If the Lessee fails to pay the monthly rental on or before the due date, the Lessee shall be charged a penalty of one-twentieth of one percent (1/20 of 1%) of the amount due per day of delay.

9.6. The Lessee warrants that:

9.6.1. All information material to the approval of his application to avail himself of the Rent-to-Own program is true;

9.6.2. He accepts the housing unit on an "as is where is" basis;

9.6.3. He and his family shall occupy the residential unit and not sublease the property to another party;

9.6.4. He shall answer for the cost of repair, renovation, and any or all improvements on the property, such as the construction of a perimeter or property fence or the extension of the housing unit;

9.6.5. He shall not tear down or destroy improvements introduced to the property during the term of the lease, upon being notified to vacate the property;

9.6.6. He shall exercise due diligence to protect the property from vandalism and willful destruction during the term of the lease;

9.6.7. He shall exercise his option to purchase at any time during the term of his lease;

9.6.8. He shall comply with the provisions of the Contract of Lease and abide by the implementing guidelines of the Rent-to-Own Program.

9.7. The Contract of Lease shall be terminated upon the occurrence of any of the following:

9.7.1. Non-payment of three (3) consecutive monthly rentals;

9.7.2. Non-payment of three (3) consecutive monthly Pag-IBIG membership contributions; DHCSTa

9.7.3. Voluntary cancellation on the part of the Lessee;

9.7.4. Violation of the terms and conditions of the lease;

9.7.5. Expiration of the Contract of Lease.

9.8. The lessee shall be required to exercise his option to purchase not later than the end of term of the lease. He shall inform the Fund in writing of his intention to exercise his option to purchase at any time during the term of the lease. If he intends to exercise his option to purchase at the end of the term of lease, the Fund must be notified at least 6 months before expiration of the Contract of Lease.

 The lessee may exercise his option to purchase by paying for the property in cash or through Pag-IBIG housing loan. Refer to Item IV-B Section 8 for details on the Modes of Payment. The selling price shall be based on the appraised value of the property at point of execution of Contract of Lease net of the applicable discount. Refer to Item IV-B Section 8 hereof.

9.9. A Notice to Vacate shall be issued to the Lessee upon occurrence of any of the grounds for termination of lease as mentioned above. The Lessee shall pay all his outstanding obligations including penalty charges to Pag-IBIG Fund and shall vacate the leased premises within thirty (30) calendar days from receipt of the said notice. After the lapse of the prescribed period, the Fund shall issue a notarized Notice of Termination of the Contract.

10. Physical Possession of the Acquired Asset

 The buyer shall have physical possession of the acquired asset if the following conditions are met:

10.1. In case of installment payment, the buyer has already paid ten percent (10%) of the selling price. STECAc

10.2. In case of purchase through housing loan, the buyer has already paid the incidental expenses. If he has occupied the property pending the takeout of the loan, the buyer shall be required to pay monthly rental until his loan has been approved. Monthly rental shall be based on the prevailing rental rate in the area, which shall not be lower than One Thousand Pesos (P1,000.00).

10.3. In case of RTO, the lessee has already paid one-month advance and two months security deposit.

11. Replacement of Buyer/Lessee

11.1. A retail buyer through installment or lessee may be replaced by his relative within the second civil degree of consanguinity or affinity, provided the latter is also a Pag-IBIG member, under the following circumstances:

11.1.1. The buyer's death;

11.1.2. Loss of income due to permanent physical disability;

11.1.3. Unemployment;

11.1.4. Other similar meritorious reasons acceptable to the Fund.

11.2. All payments of the previous buyer/lessee shall accrue to the benefit of the new buyer/lessee;

11.3. The new buyer shall execute a new Promissory Note. The balance shall be paid within the remaining term of the previous buyer's Promissory Note.

12. Bulk Sale

12.1. The Fund shall pool acquired assets into lots that will be offered for bulk sale. A lot shall consist of acquired assets with gross selling price of at least P3 M. SCDaET

12.2. An invitation to submit offers to purchase shall be published in a newspaper of general circulation and the Pag-IBIG Fund website.

 Acquired assets that were previously published under the Memorandum of Agreement with Developers and those that are subject of unsolicited proposals prior to the issuance of these guidelines shall be excluded from publication. Project proponents who previously made unsolicited proposals shall be required to submit new proposals within thirty (30) days from issuance of these guidelines.

12.3. Buyers shall submit an offer to purchase indicating the amount of his offer and chosen mode of payment on the deadline of acceptance of offers.

12.4. There must be at least one (1) offer that meets the required minimum selling price. Otherwise, the bulk sale shall be declared a failure.

12.5. In case of multiple offers for the same lot, the winning buyer shall be chosen based on the following order of priority:

12.5.1 Amount of offer

12.5.2. Mode of Payment

12.6. Payment shall be made in cash or installment and in accordance with the terms and conditions of the mode of payment chosen. Refer to Sections 8.3 and 8.4 of Item IV-B hereof. TEIHDa

12.7. The Fund shall grant a discount depending on the gross selling price:

Selling Price	Discount
P3M to P5 M	40%
>	P5 M to P50 M	41%
>	P50 M to P150 M	42%
>	P150 M to P200 M	43%
>	P200 M	45%

13. Cancellation of Sale

13.1. The sale of the acquired asset shall be cancelled under the following circumstances:

13.1.1. The buyer withdraws his offer to purchase after it has been accepted;

13.1.2. If cash payment, the buyer fails to pay the full amount within thirty (30) calendar days;

13.1.3. If installment, the buyer fails to pay the full amount within the chosen payment term.

13.1.4. If Pag-IBIG housing loan, the borrower fails to perform any of the following within thirty calendar days from receipt of Notice of Approval of Sale:

a. File the housing loan application;

b. Pay the incidental expenses.

13.2. A Notice of Cancellation of Sale shall be issued to the buyer. Once the sale is cancelled, the buyer loses his right to purchase the property/ies. 

13.3. If the buyer is already occupying the property, he shall be given thirty (30) calendar days from cancellation of sale to vacate the property. EcAISC

14. Forfeiture of Payments and Deduction of Other Charges

14.1. Once the sale of the acquired asset is cancelled as provided in Section 13 of Item IV-B hereof, the following shall be forfeited in favor of the Fund:

14.1.1. Buyer's principal payments, not to exceed 10% of the selling price net of applicable discount;

14.1.2. Interest already paid, in case of installment payment or if there is a change in mode of payment.

14.2. In case the retail buyer already occupied the property at the time of cancellation of sale, the following charges shall likewise be deducted from the buyer's payments:

14.2.1. Rent for the month/s that the property has been occupied by the buyer; SAcCIH

14.2.2. Unpaid bills and expenses necessary to repair any loss or damage to the property attributable to the fault of the buyer.

14.3. The remaining amount, if any, shall be refunded to the buyer within ten (10) calendar days from date of receipt of the Notice of Cancellation of Sale or surrender of the property to the Fund, whichever comes later.

C. Memorandum of Agreement with Project Proponents

1. The program shall be open to any of the following who intend to enter into an agreement with the Fund for the rehabilitation/improvement and sale of the Fund's acquired assets:

1.1. Developers

1.2. Contractors

1.3. Employers

1.4. Local Government Units

1.5. Individuals

2. To qualify, the project proponent must meet the following criteria:

2.1. Have legal personality to enter into contract;

2.2. No pending Cease and Desist Order (if applicable);

2.3. Compliant with nationality and ownership requirements under the Constitution and other applicable laws and issuances;

2.4. Have sufficient funding to finance the improvements of the ROPAs for two cycles of scheduled deliveries, as evidenced by any of the following: TaSEHC

2.4.1. Cash deposits;

2.4.2. Bank guaranty/Stand-by Letter of Credit;

2.4.3. Bank Credit Line;

2.4.4. Agreement with Suppliers and/or Contractors.

 A cycle shall refer to a quarterly delivery of accounts for takeout.

3. Mechanics

3.1. The Pag-IBIG Fund shall extend an invitation to interested parties to submit proposals to develop and sell Pag-IBIG Fund acquired assets. Said invitation shall be published once in a newspaper of general nationwide circulation and posted continuously in the HDMF website.

 The Fund will identify pool of acquired assets to be offered for MOAPP.

3.2. Proposals shall be accepted provided the Fund is able to recover at least the selling price set at the time of execution of the Memorandum of Agreement, net of the applicable discount.

3.3. Eligible developers shall be required to enter into a Memorandum of Agreement (MOA) with the Pag-IBIG Fund, providing among others:

3.3.1. The Pag-IBIG Fund shall provide the inventory of acquired assets from one housing project;

3.3.2. The project proponent shall be responsible for the rehabilitation/improvement of units, security, marketing and documentation of acquired assets for disposal. He shall likewise carry out the completion of land development if necessary.

3.3.3. The project proponent shall rehabilitate and sell the acquired assets subject of the Agreement for a maximum period of two (2) years. DHacTC

3.4. The developer shall take over the administration of the acquired assets in the subdivision subject of the MOA not later than the second week of the month following the signing of the MOA and turnover of the inventory to the project proponent.

3.5. The developer shall only be allowed to submit a new proposal to manage another inventory of Pag-IBIG ROPA if at least fifty percent (50%) of the ROPA have been sold either through cash, installment or Pag-IBIG housing loan, subject to the considerations presented herein. At any one time, the aggregate number of units shall be at most five thousand (5,000).

4. Role of HDMF

4.1. The Fund shall identify the pool of asset to be offered under MOAPP.

4.2. The Fund shall grant the developer with the authority to market the acquired assets and undertake eviction proceedings of occupied properties subject of the MOA.

4.3. The Fund shall pay for the real estate property taxes of acquired assets until the units are sold.

4.4. The Fund shall provide long-term home financing to qualified member-buyers under the applicable Pag-IBIG end-user financing program for the acquisition of lot, house and lot, or condominium units.

4.5. The Fund shall process the project proponent's share on the sale of the acquired asset, based on total sales made on or before the 25th of every month, subject to the following conditions: TcEaAS

4.5.1. It shall be processed upon full payment of the selling price by the buyer or upon takeout of the Pag-IBIG housing loan;

4.5.2. The share of the project proponent shall be net of the selling price of the acquired asset set at the time of execution of the Memorandum of Agreement;

4.5.3. The cash bond corresponding to the acquired assets sold shall likewise be refunded to the latter.

5. Role of the Project Proponent

5.1. The project proponent shall pay a cash bond in the amount of Five Thousand Pesos (P5,000.00) for every residential unit or subdivided lot covered by the MOA. In case of raw land, the project proponent shall pay the cash bond in the amount equivalent to one percent (1%) of the appraised value of the said acquired asset.

5.2. The project proponent shall rehabilitate/improve the acquired assets subject of the MOA, in accordance with a rehabilitation schedule approved by the Fund. Hence, the project proponent shall submit to the Fund land development or unit improvement plans as the case may be. Said plans shall be appraised by the Fund prior to the setting of the selling price.

 The project proponent must notify the Fund on or before the last working day of the quarter should he be unable to meet the rehabilitation schedule. Thereafter, he shall be given an extension of three months to rehabilitate/improve the acquired assets and shall be required to submit a revised rehabilitation schedule reflecting such extension within thirty (30) days from receipt of the written notification by the Fund. The project proponent may be granted at most 2 extensions. EcSaHA

5.3. The project proponent shall market and sell the refurbished units in accordance with a delivery schedule mutually agreed upon by the project proponent and the Fund. The project proponent must notify the Fund on or before the last working day of the quarter should he be unable to meet the delivery schedule. Thereafter, he shall be given an extension of three months to dispose of the acquired assets and shall be required to submit a revised delivery schedule reflecting such extension within thirty (30) days from receipt of the written notification by the Fund. The project proponent may be granted at most 2 extensions.

5.4. In case of sales through Pag-IBIG Housing Loan, the project proponent shall process the necessary documentation for the housing loan application and deliver the same to the Fund. However, the signing of the loan documents must be made in the presence of an authorized Pag-IBIG employee and within the Pag-IBIG office.

5.5. The project proponent shall refer the buyer to the Acquired Assets Management Group/Loans and Contributions Recovery and Management Division.

6. Termination of the Agreement

6.1. The following shall be grounds for termination of the agreement:

6.1.1. Non-compliance with the rehabilitation schedule;

6.1.2. Non-compliance with the delivery schedule;

6.1.3. Misrepresentation by any person or agent employed by or allowed to transact or do business in behalf of the project proponent;

6.1.4. Upon written notice by either party; EHaCID

6.1.5. Expiration of the term of the Agreement.

6.2. Notwithstanding the termination of MOA, any sale through Pag-IBIG Housing Loan that is still in the pipeline at the time of termination shall still be subject to the provisions of these guidelines.

6.3. If there are still unsold units in the developer's inventory upon termination of the agreement, the project proponent shall be given ninety (90) days therefrom to purchase the remaining units in his inventory. The purchase of units shall be based on their indicative selling price set at the time of execution of the Memorandum of Agreement less applicable discount, and a penalty of 1/20 of 1% per day reckoned from termination of agreement until date of settlement.

Gross Indicative Selling Price	Discount
P10 M	40%
> P10 M to P50 M	41%
> P50 M to P200 M	43%
> P200 M	45%

 The corresponding cash bond shall be applied as partial payment to the selling price.

6.4. In case the project proponent fails to purchase the units within the prescribed period, the following sanctions may be imposed singly or collectively:

6.4.1. Offset the amount due from any of the project proponent's receivables from the Fund;

6.4.2. Forfeiture of improvements on the remaining units and the corresponding cash bond;

6.4.3. Suspension from participating in succeeding offers under the MOAPP until compliance with the terms and conditions of the program. ETIcHa

V. Other Provisions

1. It is incumbent upon the buyers or project proponents to make the necessary investigation, inspection and verification of property/ies for sale or those that will be subject of a Memorandum of Agreement with project proponent to ascertain its actual condition and the status of title to the property/ies before making an offer or proposal.

2. The Fund reserves the right to reject any or all offers for bulk sale or Memorandum of Agreement with Project Proponents, waive any defect or infirmity in the submitted offer to purchase, and to accept such offers as may be advantageous to the Fund.

3. Purchase of Pag-IBIG Fund acquired assets by HDMF personnel and their relatives within the second civil degree of affinity or consanguinity shall be subject to the limitations that shall be determined by the Senior Management Committee. 

4. The Fund may outsource the eviction process for properties illegally occupied.

5. Any deviations from these guidelines shall be subject to the approval of the Senior Management Committee.

VI. Repealing Clause

HDMF Circular Nos. 177-C, 200, 266 and 279, as well as all memoranda, rules, regulations and other issuances inconsistent herewith are hereby repealed, amended, or modified accordingly.

VII. Effectivity

These guidelines shall take effect after three months from issuance of these guidelines. CTaIHE

Makati City, May 17, 2012.

 

(SGD.) ATTY. DARLENE MARIE B. BERBERABEChief Executive Officer