TESSA Salazar talks to an industry legal expert who shares at least 15 ways to prevent your home from getting repossessed.
Mike Denava, a legal officer of the Housing and Land Use Regulatory Board, noted that about 50 percent of buyers of house and lots and condominium units had admitted they could no longer pay their monthly amortizations or were dissatisfied with particular aspects of the project, and were asking for refunds of their payments.
He added that some of these callers were overseas contract workers who could no longer find jobs abroad.
Denava has enumerated the following 15 reminders to potential property buyers:
1. Check the source of your income. Aside from checking the development projects thoroughly, look at your own resources on a long-term basis to be certain if you can really pay your monthly amortizations in the long run.
2. Check if the project has a license to sell and if it is registered with the HLURB.
3. Check if the broker or agent is registered.
4. Check if the property is not yet sold to others.
5. Conduct personal visits to the project site. It is also advisable to visit the property itself to check for leaks or potential for flooding.
6. If you’re buying on pre-selling terms, look at the date of completion of the project, which should be found in the developer’s license to sell.
7. Check if the property is mortgaged. If it is, make sure there is clearance from the HLURB.
8. Check if the materials used in your prospective home conforms with the standards approved by the HLURB. It is indicated in the approved plan. The local government approves the plan for subdivision projects, while the HLURB approves plans for condominiums. HLURB grants certificates of registration and licenses to sell to developers applying for project approvals. Denava also said approval of subdivision projects also includes the assurance of safety measures. Mandatory requirements, particularly in condominium units, include certificates of fire protection, occupancy permits and mechanical certificates.
9. Make it clear who should be responsible for paying the cost of water and electric meters.
10. Check whether subdivision perimeter fences will be provided. If it is not in the approved plan, a buyer cannot demand the developer to put perimeter fences.
11. Do not sign a blank contract to sell.
12. Read the contract to sell thoroughly, especially the fine print.
13. Secure a copy of the contract to sell and of the other documents that you have signed.
14. Make sure the contract to sell will be registered with the Register of Deeds (the developer is mandated to do this).
15. Pay directly to the owner-developer and/or authorized marketing agents, and make sure to ask for official receipts as soon as they get your payment.
8 Feedbacks on "Ways to prevent your home from getting ‘repossessed’"
Angel R. Eufemio
What about those properties (in delinquent payments - accounts) which were acquired by Bahay Financial Services, Inc. (BFS) through the NHMFC, do we still have the right to compel the developer (Palmera Homes) to fulfill its obligations, e.g. rift rafting etc. Another, there is a talk that homeowners who are already in possession of their title who tried to mortgage them were turned-down by banks for the reason that what they are holding is a fake transfer certificate of title issued by the developer. How do we verify if it is a genuine or not? Please advise.
Angel R. Eufemio
May I request that the above be replied through my e-mail address, and not be published.
Many thanks.
Richard
So? What what are the ways to prevent your house from being repossessed if you could no longer pay the amortization?
Belen de Guzman
Why is it that the costs of properties forwarded to BFS (Balikatan) are much more affordable than asking the NHMFC to give discounts or condone penalties & interests when you decide to pay in full?
manuel basio
if the subdivision property is mortgaged to a local bank without clearance from HLURB, can the loan be cancelled? The subdivision is pending and there are 3 buyers already.thanks
Mrs. Baby
Please tulungan nyo po ako kung panu ko po isolve ang problema ko sa Final demand letter na natanggap ko from balikatan. Ito po bay foreclosure procedure na? Ofw po ako, kulangin po tlaga income ko kaya di ko pa kaya magsettle ng buong obligasyon ko, ung buong halaga ng utang ko sa bahay. Marami salamat po, I am so grateful I found this column of yours, you’re like an angel kasi di ko tlga alam sinong hingian ko ng tulong. More power to you.
security monitoring
The best course of action is to have open communication with your creditors. Let them know your financial situation, and what you’re able to pay. It costs them a lot of money to repossess a house, and it’s in their best interest to keep you there, paying your bills.
I can’t say that if you keep paying your bills will keep them away if you are extremely delinquent on a sizable sum, but sometimes if you explain the situation plainly, they will understand, and negotiate a new payment situation.
Jay Castillo
I somehow feel that the tips given are not exactly for people who want to prevent their homes from getting repossessed, but are rather tips for people to consider before buying properties in general. I agree with Security Monitoring, keep the communication lines open with your creditors. With Pag-IBIG for example, a simple letter explaining your situation can make a world of a difference and they often wave penalties. Yes, some people I know have done this.
Another thing a homeowner can consider would of course be to sell the property, no use holding on to it if they no longer have the capacity to pay. That would be far better than going into foreclosure.
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