The Pros and Cons of Buying PAG-IBIG Foreclosed Properties in the Philippines

If you’re looking to invest in real estate in the Philippines, you may have come across the option of purchasing PAG-IBIG foreclosed properties.

These properties are homes or pieces of land that were repossessed by the Philippine government’s Home Development Mutual Fund (HDMF), commonly known as PAG-IBIG, due to unpaid loans.

While buying a foreclosed property can be an opportunity to acquire a home or land at a lower price, it’s important to weigh the pros and cons before making a decision.

One of the advantages of buying a PAG-IBIG foreclosed property is the potential for a lower purchase price. Foreclosed properties are typically sold below market value, making them an attractive option for those on a tight budget.

Additionally, PAG-IBIG may offer discounts or special financing options to make the purchase more affordable.

However, it’s important to keep in mind that foreclosed properties may require repairs or renovations, which can add to the overall cost.

On the other hand, there are also potential drawbacks to buying a foreclosed property. One of the main concerns is the condition of the property. Since foreclosed properties may have been vacant for some time, they may have fallen into disrepair or have been damaged by previous owners.

Additionally, the process of acquiring a foreclosed property can be complicated and time-consuming, requiring extensive research and paperwork.

It’s important to carefully consider both the advantages and disadvantages before making a decision to purchase a PAG-IBIG foreclosed property.

What is PAG-IBIG?

If you’re a Filipino looking to buy a home, you may have heard of PAG-IBIG. PAG-IBIG stands for the Philippine government’s Home Development Mutual Fund. It’s a government agency that aims to provide affordable housing to Filipinos by offering housing loans and other housing-related programs.

One of PAG-IBIG’s most popular programs is its housing loan program. This program allows Filipinos to borrow money to buy a home. The loan comes with affordable interest rates and term duration of up to 30 years.

Loan interest rates start at 5.375% for one year and 6.375% for three years minimum.

This program is made possible by PAG-IBIG’s partnerships with local real estate developers.

Aside from the housing loan program, PAG-IBIG also offers other programs such as the MP2 Savings Program, which is a savings program that allows you to invest your savings and earn dividends. The dividends are tax-free and the program has been earning higher interest than regular savings accounts.

Pros of Buying PAG-IBIG Foreclosed Properties

If you’re in the market for a new home or investment property, PAG-IBIG foreclosed properties can be a great option. Here are some of the advantages of buying a foreclosed property through PAG-IBIG:

Affordability

One of the biggest advantages of buying a PAG-IBIG foreclosed property is affordability. These properties are typically sold at a lower price than their market value, making them an attractive option for budget-conscious buyers.

In addition, if you avail of a PAG-IBIG housing loan to finance your purchase, you’ll have lower monthly amortizations compared to other types of loans.

Availability

PAG-IBIG foreclosed properties are widely available in various locations across the Philippines. This means that you have a greater chance of finding a property that suits your needs and preferences.

Whether you’re looking for a house and lot, a condominium unit, or a vacant lot, PAG-IBIG has a wide range of foreclosed properties to choose from.

Flexible Payment Terms

PAG-IBIG offers flexible payment terms for their foreclosed properties. You can choose from different payment options, such as cash or installment, depending on your financial capacity.

In addition, PAG-IBIG may also offer discounts or incentives for buyers who pay in cash or make an early full payment.

Overall, buying a PAG-IBIG foreclosed property can be a smart financial move. With its affordability, availability, and flexible payment terms, you can find a property that fits your budget and lifestyle.

However, it’s important to do your due diligence and research the property thoroughly before making a purchase to avoid any potential issues or problems.

Cons of Buying PAG-IBIG Foreclosed Properties

Condition of the Property

One of the biggest disadvantages of buying a foreclosed property from PAG-IBIG is the condition of the property. These properties have been foreclosed due to non-payment of the previous owner’s loan, and they may have been left unoccupied and uncared for a long time.

As a result, the property may have deteriorated and may require significant repairs and renovations before it can be habitable.

It is important to inspect the property thoroughly and assess the extent of the damage before making an offer. You may need to hire a professional inspector to help you identify any structural issues, water damage, or pests that may be present on the property.

Location

Another factor to consider when buying a foreclosed property from PAG-IBIG is the location. While some foreclosed properties may be located in prime areas, others may be in less desirable neighborhoods. You should research the location and consider factors such as proximity to schools, hospitals, and commercial areas before making a decision.

In addition, you should also consider the safety and security of the neighborhood. You can check the crime rate in the area and talk to the neighbors to get a sense of the community before making an offer.

Competition

Buying a foreclosed property from PAG-IBIG can be a competitive process, especially if the property is in a desirable location or has a low asking price. You may face competition from other buyers who are also looking for a bargain.

You should be prepared to act quickly and make a competitive offer to increase your chances of getting the property. However, you should also be careful not to overbid and end up paying more than the property is worth.

Overall, while buying a foreclosed property from PAG-IBIG can be a good investment opportunity, it is important to weigh the pros and cons carefully before making a decision. You should consider the condition of the property, the location, and the competition before making an offer.

READ: Your Ultimate Guide to Buying PAG-IBIG Foreclosed Properties in the Philippines

Tips for Buying PAG-IBIG Foreclosed Properties

Research

Before buying a foreclosed property from PAG-IBIG, it is important to do your research. Look for properties that fit your budget and location preferences.

You can visit the PAG-IBIG website to check for available properties, or attend public auctions to bid on foreclosed properties.

It is also important to research the history of the property, such as its previous owners and any outstanding debts or liens. This can help you avoid any legal or financial issues in the future.

Inspection

Inspecting the property is crucial before making a purchase. Visit the property to check for any damages or repairs that need to be made. You can also bring a professional inspector to help you identify any potential problems.

Verify the information provided by PAG-IBIG, such as the lot area and floor area, to ensure that it matches the actual property. You can also ask for additional information, such as the property’s history and reason for foreclosure.

Legal Assistance

Buying a foreclosed property can be a complicated process, so it is recommended to seek legal assistance. A lawyer can help you review the terms and conditions of the sale, as well as the legal documents involved.

They can also help you identify any legal issues, such as disputes over ownership or unpaid debts, that may affect the property. This can help you avoid any legal problems in the future and ensure a smooth transaction.

READ: How to Avoid Common Mistakes When Buying PAG-IBIG Foreclosed Properties

Conclusion

Buying PAG-IBIG foreclosed properties can be a great investment opportunity for those looking for affordable real estate options. However, it is important to weigh the pros and cons before making a decision.

One of the biggest advantages of buying PAG-IBIG foreclosed properties is the lower price compared to properties currently on the market. Additionally, other discounts may be applied, depending on your payment structure.

On the other hand, it is important to keep in mind that PAG-IBIG foreclosed properties are sold “as is, where is.” This means that finding a good property without issues can be a game of luck.

Some foreclosed homes may have been left to deteriorate, so while you might think you’re getting a good deal on a home, the money you saved from buying lower than the market value will go towards repairs and renovations.

Before making a decision, it is important to do your research and gather all the necessary information. Consider the location, condition, and potential resale value of the property. Take into account the bidding process and requirements, as well as any additional fees and taxes.

Overall, buying PAG-IBIG foreclosed properties can be a great opportunity for those willing to put in the time and effort to find the right property. Just be sure to weigh the pros and cons and make an informed decision.

Updated: June 1, 2019

Still looking for a more affordable condo unit or house and lot property in the Metro and in the nearby cities?

Why don’t you try Pag-IBIG Foreclosed properties?

Pag IBIG Foreclosed Properties – December 2019

Do you know that the Pag-IBIG Fund releases their list of foreclosed and acquired properties monthly and everyone is welcome to join their auctions?

Well, it does!

And what’s good about foreclosed properties is that you can purchase real estate properties including house and lot and condo units at a much cheaper price than other properties that are being offered by other companies and developers.

So, if you’re considering to purchase a real estate property, check out the list and schedule of public auctions of Pag-IBIG Foreclosed Properties for the month of June 2019.

Public Auctions with Discount

NCR Branch

Date: June 27 & 28, 2019
Venue: Roofdeck. JELP Business Solutions Center, 409 Shaw Blvd. Mandaluyong City

On June 27, 143 foreclosed properties in Cavite area will be available for auction.

On June 28, 165 foreclosed properties in Bulacan, Batangas, Laguna, Metro Manila, and Rizal will be available for auction.

A total of 308 foreclosed properties will be available for auction at the NCR Branch.

Public Auctions without Discount

NCR Branch

Date: June 13 & 14, 2019
Venue: Roofdeck. JELP Business Solutions Center, 409 Shaw Blvd. Mandaluyong City

On June 13, 203 foreclosed properties in Cavite areas will be available for auction.

On June 14, 225 foreclosed properties in Bulacan, Batangas, Laguna, Metro Manila, and Rizal will be available for auction.

Zamboanga Branch

Date: June 14, 2019
Venue: Chandler Suites Hotel, Pagadian City

On June 21, a total of 12 foreclosed properties in Zamboanga City, Ozamis City, and Pagadian City will be available for auction.

3 units Ipil, Zamboanga Sibugay
1 unit in Ozamis City
8 units in Pagadian City

Davao Branch

Date: June 18, 2019
Venue: Sito’s Place, Brgy. San Francisco, National Highway, Panabo City
Date: June 19, 2019
Venue: Miko’s Brew, Apokon Road, Tagum City

On June 18 and 19, a total of 133 foreclosed properties in Davao will be available for auction.

Some of the foreclosed units are available in these areas:

Penaranda Subdivision, Cebulano, Carmen
Maliaville Subdivision, Ising, Carmen
Crystal Plains Subd, Bo. Cagangohan, Panabo City
Niceville Subd, Panabo City
Golden Heights, Panabo City
Southview Subd, Panabo City
Angeles Subd, Panabo City
Panabo Country Homes, Panabo City
Sto. Tomas Country Homes, Sto. Tomas

What you should know before you purchase a foreclosed property

Pag-IBIG Foreclosed Properties are sold on an “AS IS, WHERE IS” basis. Make sure to check or inspect the property before purchasing it.
Don’t give your payment to Brokers and Agents as they are NOT ALLOWED to accept or collect any payments.
Reservations for properties will be accepted upon presentation of any of the following documents:
- Employed – Latest 1 month payslip
- Self-employed – Brgy./Business Permit/ITR
- OFW – Active Contract/Latest CEC

For more info about Pag-IBIG Foreclosed Properties, you may contact Pag-IBIG Fund’s Hotline at 724-4244 or visit any Pag-IBIG Fund branch.

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