Purchase of Lot (The Pagibig Fund Malolos Expericence)

My wife applied for a Purchase of lot loan in Pagibig Fund in Malolos, Bulacan.

We chose Purchase of Lot because if we choose House Construction:

1. Building Plans, Specification and Bill of Materials
duly signed by the Licensed Civil Engineer or Architect -cost 35k + it will save us some bucks if we ask a help from a friend of mine who is a Civil Engineer but he is a busy man.

2.With SPA from your parents, allowing you to build your house in their lot with TCT.

My mother won't allow us to use the whole 300 sq. m lot, informing her that we must surrender the title once the loan is approved, I'm not planning to used the whole lot, only 100 sq. m. but we need to subdivide the land and produce it's own title.

(I should have given this option a second thought because we spent 50k more or less in all the requirements and in procedures in the "purchase of lot", Once our Purchase of Lot was approved we must transfer the title to our name, Pagibig don't allow down valuing of property. We paid 35k more or less for doc tax and transfer tax from the selling price/approved loan of 295k. We could have use the money to subdivide the land. And use the SPA..

We did not really purchase the lot because it's my mother's other property, but then we need 70k for mentioned in no 1 and 2 .)

CHECKLIST OF REQUIREMENTS
FOR Pag-IBIG HOUSING LOANS

http://www.pagibigfund.gov.ph/member_tools/forms/COR-Window%203/Locally%20Employed/COR%20-%20%20Purchase%20of%20Lot.pdf


For Direct Loan Application (Retail Account)
Locally Employed Members
Two – Stage Processing
Purchase of Lot
1st stage - Documents Required upon Loan Application
A. Documentary Requirements
1. Housing Loan Application with recent ID photos of borrower
2. Membership Status Verification Slip (MSVS)
3. Proof of Income, any of the ff:
a. Notarized Certificate of Employment and Compensation (Pag-IBIG format)
b. Notarized Certificate of Employment and Compensation (Employer’s format) and latest
1 month payslip
c. Income Tax Return/Certificate of Tax Withheld(BIR Form No. 2316) and latest
1 month payslip
4. Contract to Sell or similar agreement between the buyer and seller
B. Technical Requirements
1. Certified true copy of TCT by the Register of Deeds (latest title)
2. Location Plan (Surveyor) and Vicinity Map
3. Photocopy of Tax Declaration
* For borrower over 60 years old, Medical
Questionnaire and Full Medical Examination

2nd - Documents Required Prior to Loan Release
A. Documentary Requirements
1. TCT in the name of the borrower with proper mortgage annotation in favor of Pag-IBIG
Fund (Owner’s copy)
2. Certified true copy of TCT in the name of the borrower with proper mortgage annotation in
favor of Pag-IBIG Fund (RD’s copy)
3. Photocopy of New Tax Declaration in the name of borrower and updated Real Estate Tax
Receipt
4. Loan Mortgage Documents
a. Loan and Mortgage Agreement with original RD stamp
b. Deed of Absolute Sale with original RD stamp
c. Notarized Promissory Note
d. Disclosure Statement on Loan Transaction
5. Collection Servicing Agreement with Authority to Deduct Loan Amortization or Post
Dated Checks
6. Proof of Billing Address

here are the steps:

1st. Attend Counseling - call first for registration/schedule.

Bring with you:

1. Housing Loan Application with recent ID photos of borrower - Form you can download from their site or get at Pagibig processing office and 2pcs 1 x 1 id pics

2. Membership Status Verification Slip (MSVS) - Form to be given you signed as a proof that you attended the counseling, you can also download from their site.

3. Proof of Income, any of the ff: ( note the word any, but personnel receiving the loan application insist that " nagkamali sorry" We provided them with Income Tax Return and latest 1 month payslip but still ask for Notarized Certificate of Employment, "nagkamali sorry" yung any but it is still there.
a. Notarized Certificate of Employment and
Compensation (Pag-IBIG format)
b. Notarized Certificate of Employment and
Compensation (Employer’s format) and latest
1 month payslip
c. Income Tax Return/Certificate of Tax Withheld
(BIR Form No. 2316) and latest 1 month payslip


What happen to us when we attended the counseling is our names are not in the list, it is maybe because the person who received my call forgot to put us in the list or I called Pagibig - Makati branch, I forgot, anyway we insist we called and they let us attend the counseling.

We were mis-inform that we should complete the "Documents Required upon Loan Application" which is the Document and Technical Requirements according to someone I forgot her name, but she have authority over the persons receiving the applications.

I completed all of the requirements after one week and go back to Pagibig they took only the the first 3 requirements I mentioned above saying MEMBERSHIP STATUS VERIFICATION SLIP must be accomplish first, documents that we already have since the counseling.

hmmmf, I ask for the same person who ask me to complete the "Documents Required upon Loan Application" , of course she denies it.

2nd step. you to call Pagibig for 1 week to ask them if (MSVS) is approved, it took us I think 3 weeks of follow up, because they will tell that it is not yet ready, they are processing many application plus the holidays.

3rd step. When MSVS is ready submit the remaining "Documents Required upon Loan Application" which is the Document and Technical Requirements.

4. Contract to Sell or similar agreement between the buyer and seller
B. Technical Requirements
1. Certified true copy of TCT by the Register of Deeds
(latest title)
2. Location Plan and Vicinity Map
3. Photocopy of Tax Declaration
* For borrower over 60 years old, Medical
Questionnaire and Full Medical Examination


Then they will schedule you 1 week for CI (credit investigation I think), their going to visit the lot, you have to call them for days and weeks to ask the schedule. Again they are doing CI in many loan application plus the holidays.

It took 1 month and 1 week, because they did not find the site in the first CI, surveyor error in vicinity map, I drew and faxed a new vicinity map, they did not find the location again because no one can point them which lot it is, they don't ask neighbors, for the last time I' m with them to point them the property.

When the loan is approved you have to follow up for 3 days to 1 week.

Documents Required Prior to Loan Release,

4th step.Transfer the title to borrower's name, I think this step should have be examined, imagine you have to transfer the title without paying the owner of the property, When the Pagibig check is release, which takes forever, that you have to assure the
property owner, I doubt it if the owner believes you.

Transfer of title procedure: 35 days

http://www.doingbusiness.org/ExploreTopics/RegisteringProperty/Details.aspx?economyid=153&excel=true

1	Preparation of the deed of sale and ratification by notary public
2	Obtain a certified true copy of latest tax declaration from the Assessors Office of Norzagaray, Bulacan (Property is located)
3	Payment of Documentary Stamp Tax and Capital Gains Tax at an authorized bank
4	Obtain tax clearance (or Certificate Authorizing Registration) from the Bureau of Internal Revenue (Sta. Maria, Bulacan for property located in Norzagaray, Angat, SJDM and etc)
5	Obtain a tax clearance certificate of Real Estate Taxes from the Treasurers Office of Norzagaray, Bulacan (property is located) You can get this anytime the property tax is paid from your local treasurer's office.
6	Payment of transfer tax at the Treasurers Office Of Provincial Capitol of Malolos
7	Apply with the Assessors Office for the issuance of a new tax declaration over the building in the name of buyer
8	Apply for registration with the Register of Deeds of Meycuayan(For properties in Norzagaray, Angat, SJDM and etc) Don't forget, ID, cash payment for registration, tax declaration and tax receipt, clearance from treasurer's office (municipality where property is located), Docs tax stamp receipt, transfer tax receipt and COA (procedure 4)

Upon submission next step follows: in my case I thought it was over, but we're only half the procedure. I was mis-informed that the borrower should be present for signing of Loan Mortgage Documents, my wife absented herself only to found out that the Loan Mortgage Documents will be prepared first and we were given a schedule the next week.

5th step. Loan Mortgage Documents signing, call for the schedule, call prior the day of schedule, or they will only prepare/print Loan Mortgage Documents when you arrived/ after waiting for your turn. A lot of times you have to get your number for your turn.

1 tiring day. Go to BIR for docs. stamp and loan tax payment then go to Register of deeds for Annotation

6th step. Upon completion of the Documents Required Prior to Loan Release, next is
Check Preparation 7 days.

In my case it took us 2 weeks of follow ups because they forgot to tell us about the Collection Servicing Agreement with Authority to Deduct Loan Amortization or Post Dated Checks

it is not in the list of requirements before, the added problem is if we chose Collection Servicing Agreement with Authority to Deduct Loan Amortization, according to them, Department of Education remit their deduction late for three months, and we will be penalize, 100 each day ( not sure) imagine that for three months.

the other option, we can pay 1 year contributions in cash or Post dated checks, Banks requires you to have savings at least for the past 4 months to convert it to Checking Account, so I suggest open your savings account now.

BPI give us consideration maybe the manager knew me, I don't know or maybe it is because the purpose is Pagibig, that the first sign of Pagibig(love) in this loan experience. 10k is the minimum maintaining balance expensive love huh.

7th step. We are going to issue the Post dated check the day we are getting our loan check. For two weeks we calling them, giving us the reason: asking me it is for annotation-5th step (overhearing saying my papers progress note or something is not updated), or your papers are re-evaluated (3 days of phone calls), check are for preparation (3 days of phone calls), voucher are for signature (2 days of Phone call), Check are for signing call tomorrow (2 days fo phone call). I'll make a phone call tomorrow, I hope I will be successful.

We are in debt of 50k more or less, money spent in this Pagibig or Pahirap loan, our budget disfigured by this experience.

Expenditures:
Transpo
Surveyor
Doc Tax
Trasfer Tax
Registration to Register of Deeds
Loan tax/ Doc stamp
Annotation
Phone calls