How to Avoid Common Mistakes When Buying PAG-IBIG Foreclosed Properties in the Philippines

If you’re planning to purchase a foreclosed property in the Philippines, one of the best options is to buy from PAG-IBIG.

The Home Development Mutual Fund, commonly known as PAG-IBIG, offers a wide range of foreclosed properties for sale at affordable prices.

However, buying a foreclosed property can be a daunting task, especially if you’re a first-time buyer. In this article, we’ll discuss some common mistakes that you should avoid when buying PAG-IBIG foreclosed properties.

One of the most common mistakes that buyers make is failing to do their due diligence. Before you make an offer on a PAG-IBIG foreclosed property, it’s important to research the property thoroughly. This includes checking the property’s location, condition, and market value. You should also check if there are any liens or encumbrances on the property that could affect your ownership rights.

Another mistake that buyers make is underestimating the costs involved in buying a foreclosed property. While foreclosed properties are generally cheaper than properties sold in the open market, they can still be expensive to acquire. In addition to the purchase price, you may also need to pay for taxes, fees, and other expenses. It’s important to factor in these costs when deciding on your budget for buying a PAG-IBIG foreclosed property.

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

Understanding PAG-IBIG Foreclosed Properties

If you are planning to buy a property in the Philippines, PAG-IBIG foreclosed properties can be a great option to consider. However, before you proceed with the purchase, it is important to understand what PAG-IBIG foreclosed properties are and why you should consider buying them.

In this section, we will discuss these topics in detail.

What are PAG-IBIG foreclosed properties?

PAG-IBIG foreclosed properties are properties that have been foreclosed by the Philippine government’s Home Development Mutual Fund (HDMF), commonly known as PAG-IBIG.

These properties were originally financed by PAG-IBIG housing loans, but the original owners failed to pay their monthly amortizations, resulting in the foreclosure of their properties.

As a result, PAG-IBIG acquired these properties and is now selling them to the public at discounted prices.

Why buy PAG-IBIG foreclosed properties?

There are several reasons why you should consider buying PAG-IBIG foreclosed properties:

  • Discounted prices: PAG-IBIG foreclosed properties are sold at prices lower than their market value, making them a great investment opportunity.
  • Flexible payment terms: PAG-IBIG offers flexible payment terms for their foreclosed properties, making it easier for buyers to acquire them.
  • Wide selection: PAG-IBIG has a wide selection of foreclosed properties across the Philippines, giving buyers plenty of options to choose from.
  • Good investment: Buying a foreclosed property can be a good investment, as it can potentially appreciate in value over time.

However, it is important to note that buying a foreclosed property comes with its own set of risks and challenges. It is important to do your due diligence and research before making a purchase.

In the next section, we will discuss some common mistakes to avoid when buying PAG-IBIG foreclosed properties.

READ: The Pros and Cons of Buying PAG-IBIG Foreclosed Properties

Common Mistakes to Avoid When Buying PAG-IBIG Foreclosed Properties

Not Doing Enough Research

One of the biggest mistakes you can make when buying a PAG-IBIG foreclosed property is not doing enough research. It’s essential to research the property thoroughly before making an offer to ensure that you’re getting a good deal.

You should research the history of the property, including any liens or taxes owed, as well as the market value of similar properties in the area. You can also check if there are any ongoing disputes or issues with the property that may affect its value or ownership.

Failing to Inspect the Property

Another common mistake is failing to inspect the property before making an offer. It’s important to inspect the property thoroughly to ensure that it’s in good condition and that there are no hidden defects or issues.

You should also check the property’s amenities, such as water and electricity, to ensure that they’re working properly. If you’re not familiar with the property’s condition, it’s best to hire a professional inspector to check it for you.

Ignoring the Property’s Location and Surroundings

Another mistake is ignoring the property’s location and surroundings. The location of the property can greatly affect its value and potential for growth. You should research the area and check if it’s accessible to public transportation, schools, hospitals, and other amenities.

You should also check the surrounding properties and their conditions to ensure that they won’t negatively affect the value of the property you’re interested in.

Overlooking Hidden Costs and Fees

Finally, overlooking hidden costs and fees can be a costly mistake. When buying a PAG-IBIG foreclosed property, you should be aware of all the costs and fees associated with the purchase, such as transfer taxes, documentary stamps, and registration fees.

You should also factor in the cost of repairs and renovations if needed, and any other expenses that may come up during the purchasing process.

Preparing for the Purchase

Before you start looking for PAG-IBIG foreclosed properties, it’s important to prepare yourself for the purchase process. This will help you avoid common mistakes and ensure a smooth transaction.

In this section, we’ll cover three key steps you should take to prepare for buying a foreclosed property: getting pre-approved for a loan, determining your budget, and hiring a real estate agent.

Getting Pre-Approved for a Loan

One of the first things you should do before starting your search for a foreclosed property is to get pre-approved for a loan. This will help you determine how much money you can afford to spend on a property and give you an idea of what your monthly payments will be.

To get pre-approved for a loan, you’ll need to provide your lender with some basic financial information, such as your income, debts, and credit score. Your lender will then review this information and let you know how much money you can borrow and what your interest rate will be. This information will be invaluable as you start your search for a foreclosed property.

Determining Your Budget

Once you know how much money you can borrow, it’s time to determine your budget for buying a foreclosed property. This will involve taking into account not just the purchase price of the property, but also other expenses such as repairs, renovations, and closing costs.

To determine your budget, start by creating a list of all the expenses you’ll need to cover when buying a foreclosed property. This might include things like hiring a home inspector, paying for repairs, and covering closing costs.

Once you have a list of expenses, add them up and subtract them from the amount you’ve been pre-approved to borrow. This will give you a good idea of how much money you can afford to spend on a foreclosed property.

Hiring a Real Estate Agent

Finally, it’s a good idea to hire a real estate agent to help you with your search for a foreclosed property. A real estate agent can help you find properties that meet your criteria, negotiate with the seller on your behalf, and guide you through the purchase process.

When hiring a real estate agent, look for someone who has experience working with foreclosed properties and who has a good understanding of the local market. You should also take the time to interview several agents to find someone you feel comfortable working with and who you believe will have your best interests in mind.

The Buying Process

Buying a PAG-IBIG foreclosed property can be a great investment opportunity, but it’s important to understand the buying process to avoid common mistakes. Here are the steps you need to follow:

Submitting a Letter of Intent

Before you can buy a PAG-IBIG foreclosed property, you need to submit a letter of intent. This letter expresses your interest in purchasing the property and should include your personal information, contact details, and the property you are interested in buying.

It’s important to note that submitting a letter of intent does not guarantee that you will be able to buy the property. The property may still be subject to bidding, and you will need to attend the bidding process to have a chance to purchase it.

Attending the Bidding Process

If the property you are interested in is subject to bidding, you will need to attend the bidding process. This is where interested buyers come together to bid on the property.

It’s important to do your research before attending the bidding process. Know the value of the property, and set a maximum bid that you are willing to pay. Stick to your budget and don’t get caught up in a bidding war.

Completing the Necessary Paperwork

If you are the successful bidder, you will need to complete the necessary paperwork to finalize the sale. This includes signing a contract, paying a down payment, and arranging for financing if necessary.

Make sure you understand all the terms and conditions of the sale before signing the contract. If you have any questions, don’t hesitate to ask the PAG-IBIG representative.

Once the paperwork is complete and the sale is finalized, you can take possession of the property and start planning your investment strategy.


Buying a foreclosed property can be a great way to acquire real estate at a lower cost, but it requires careful consideration and planning. By avoiding common mistakes, you can increase your chances of success and minimize the risks involved.

Remember to always do your due diligence before making an offer on a PAG-IBIG foreclosed property. This includes researching the property’s history, condition, and market value. Working with an accredited broker or agent can also help ensure a smoother transaction and reduce the likelihood of encountering problems.

When it comes to financing your purchase, be sure to explore all your options and choose the one that best fits your needs and budget. Don’t forget to factor in additional costs such as taxes, fees, and repairs when calculating your total expenses.

Finally, keep in mind that buying a foreclosed property can be a lengthy and complex process. Be patient and stay organized, and don’t hesitate to seek professional advice if you need it. With the right approach, you can successfully navigate the world of PAG-IBIG foreclosed properties and find the perfect home or investment opportunity for you.

Updated: Sept. 1, 2019

Haven’t found that dream home yet?

Check out the latest list of Pag-IBIG Fund foreclosed properties this September 2019.

Who knows, you might be able to find the house that you’ve long been waiting for.

Why Buy Pag IBIG Foreclosed Properties? 

Buying foreclosed properties allow you to purchase a house and lot, condo unit or even just a lot, at a much cheaper price.

Most of the time, these properties were pre-owned, but the previous owner failed to pay the property that’s why it was foreclosed.

And now that the property is foreclosed, it’s now being offered to interested parties/entities at a cheaper price.

What you should do before buying Pag IBIG Foreclosed Properties? 

You need to check the property that you’re interested in before joining the auction so that you’re fully aware of the current situation or status of the property.

Some properties are still occupied which might give you a headache later on especially if the previous owners refuse to vacate the property.

There are also some available foreclosed properties that are really really cheap, unoccupied, and in a nice location and these are the best properties to buy.

But remember, it’s still up to you to decide what type of property to buy based on your needs and your budget.

Public Auction of Pag-IBIG Foreclosed Properties 

If you’re looking for foreclosed properties that are being offered WITH DISCOUNT, you should attend the public auction here in the National Capital Region (NCR).

It will be held at the Roofdeck of JELP Business Solutions Center, 409 Shaw Blvd. Mandaluyong City on September 26 and 29, 2019.

A total of 309 Pag IBIG acquired assets in different locations will be available for auction:

  • 135 foreclosed properties in Cavite
  • 174 foreclosed properties in Bulacan, Laguna, Rizal, and Metro Manila

Available foreclosed properties include the following: town house, single attached, duplex, quadruplex, row house, condominium unit, and lot only.

Pag IBIG Acquired Assets in Laguna, Metro Manila, and Rizal

pag ibig foreclosed properties

Condo Units in Metro Manila and Lots in Laguna and Rizal

pag ibig acquired assets

Click here to download the complete list of Pag IBIG Acquired Assets in NCR for September 2019.

Pag IBIG Foreclosed Properties with No Discount

NCR Branch

Pag IBIG NCR Branch will hold a public auction of Pag IBIG Foreclosed Properties without discount on September 19, 2019 at the same venue.

A total of 213 Pag IBIG acquired assets will be available at the public auction.

  • 104 properties in Cavite
  • 109 properties in Bulacan, Laguna, Rizal, and Metro Manila

pag ibig foreclosed properties

Cebu Branch

225 Pag-IBIG Foreclosed Properties will be available for auction in Cebu on September 5 and 6, 2019, at the 5th Floor, Audio Visual Room, Pag-lBIG FUND – WT Corporate Tower, Mindanao Avenue, Cebu Business Park, Cebu City.

September 5 – 72 units for auction

  • 11 foreclosed properties in Cebu City
  • 22 foreclosed properties in Talisay City
  • 33 foreclosed properties in Minglanilla, Cebu
  • 2 foreclosed properties in Naga City, Cebu
  • 4 foreclosed properties in Carcar City, Cebu

September 5 – 153 units for auction

  • 54 foreclosed properties in Lapu-Lapu City, Cebu
  • 1 foreclosed properti in Cordova, Cebu
  • 9 foreclosed properties in Mandaue City, Cebu
  • 12 foreclosed properties in Consolacion, Cebu
  • 32 foreclosed properties in Liloan, Cebu
  • 1 foreclosed property in Compostela, Cebu
  • 6 foreclosed properties in Danao City, Cebu
  • 32 foreclosed properties in Bogo City, Cebu
  • 3 foreclosed properties in Medellin, Cebu
  • 3 foreclosed properties in Bantayan, Cebu

Davao Branch

A total of 119 foreclosed properties in Davao are available for auction on September 6, 2019, at the 3rd Floor HDMF Training Room, Pryce Tower Condominium, Bajada, Davao City.

Below are some of the locations of the available foreclosed properties in Davao:

Panacan, Davao City

  • Portville Subdivision in
  • Palm Ridge Subdivision

Indangan, Davao City

  • Deca Homes Subdivision

Cabantian, Davao City

  • Green Orchard Village
  • Deca Homes Subdivision
  • Emily Homes Subdivision

Tigatto, Davao City

  • Juliville Subdivision

Tuguegarao Branch

A total of 39 foreclosed properties in Cagayan, Isabela, Nueva Vizcaya, and Quirino are available for auction on September 12, 2019, at the 3rd Floor, Conference Room, Editha Tuddao Building, Balzain Highway, Tuguegarao City, Cagayan.


Some Reminders to Interested Buyers

These foreclosed properties are available on an “AS IS, WHERE IS” basis, therefore, you’re encouraged to check the property that you’re interested in before you actually join the auction.

If you found a property that meets your needs and budget, get a copy of the following documents at the Pag-IBIG branch or the venue where the auction will be held.


Make sure to prepare the at 10% of the property’s bidding amount if you’re serious about joining the auction bidding. Remember, the bidder who offers the highest bid shall be declared as the winner.

If you don’t win in the bidding, don’t worry because your bid bond will be returned to you immediately.

You may make your reservations by submitting any of the following documents:

  • Latest 1 month payslip (if employed)
  • Barangay Permit / Business Permit / ITR (if self-employed)
  • Active Contract / Latest CEC (if OFW)

For more information about the bidding process of Pag-IBIG Foreclosed Properties, you may visit the Pag-IBIG Fund branch near you, or visit For NCR, you may call 654-1398 or 422-3000 local 5124.


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