Sunday, December 21, 2008

Holy cow! Banco Filipino conjures up another run


WHAT could have gotten into the heads of the top Banco Filipino executives and their lawyers?

Now, they themselves are predicting that their thrift bank would most likely be hit by another run, to be generated by no less than the Bangko Sentral.

“Given the great economic distress that the world is undergoing right now, it is certain that the said auction sale of [Banco Filipino’s] properties would cause panic amongst its clients and shall surely result in a bank run,” Banco Filipino declared in a new complaint filed against the Bangko Sentral and its policy-making Monetary Board.

The civil complaint, which seeks to stop the central bank from auctioning foreclosed Banco Filipino properties, and the bank run scenario, was conjured up by no less than Perfecto Yasay Jr., the former chairman of the Securities and Exchange Commission who is now lawyering for the thrift bank, along with Banco Filipino executive vice president Maxy Abad and corporate secretary Francisco Rivera.

Abad and Rivera even disclosed that the Banco Filipino head office in Makati had already been mortgaged to the Bangko Sentral, to partially secure a previous emergency loan.

Filed late last month at the Makati Regional Trial Court, the civil complaint is part of the legal strategy of Banco Filipino to force Bangko Sentral to offset the foreclosed properties against their P18.8-billion damage claim it had lodged against the old Central Bank and, now, its successor, for having “ïllegally” closed the thrift bank after it suffered another bank run in the crisis of 1984.

To make the charges stick, Banco Filipino turned on their head the comptroller and oversight functions that the Bangko Sentral has imposed on the troubled thrift bank, claiming that through those roles the banking regulator has been keeping the savings bank “hostage” since it reopened in 1994.

Yasay—yes, the same SEC chairman whom then President Estrada cursed on national television (“Tamaan ka sana ng kidlat,” was Mr. Estrada’s graphic epithet) for allegedly lying—used every derogatory adjective that any ambulance chaser can use to bamboozle its opponents.

The 48-page complaint is peppered with the words like “hostage,” “covetousness,” “greed,” “abuse,” “insidious duplicity,” “abusive,” “constantly finding fault,” “oppressive,” “confiscatory,” “institutional conspiracy”—all directed against past and present Bangko Sentral officials.

(Disclosure: Cocktales is being sued, originally for P3 billion in damages, by the Banco Filipino for a critical article that had appeared in the Philippine Daily Inquirer. The bank later reduced its libel claim, after realizing an elementary legal error on its part, to P1.7 billion,)

Heard through the grapevine

The Monetary Board has cleared the appointment of Emmanuel Hilado as treasurer of the Rizal Commercial Banking Corp., as well as the promotion of seven other RCBC officers, led by incoming first senior vice president Michael “Mister Universe” de Jesus.

(Web site: www.cocktales.ph; E-mail: cocktales_mst@pldtdsl.net)

Wednesday, December 10, 2008

Buying foreclosed homes? Choose carefully.


By JUDITH BALEA, abs-cbnNEWS.com | 12/05/2008 8:13 PM

Whether it's investors looking to buy cheap and sell for profit, or families who want to bring their renting days to an end, foreclosed homes have a sure market.

In the last couple of years, foreclosed properties being sold by banks have been gaining popularity on the idea that they fit more easily into the budget than brand new homes.

Banks regularly hold auctions to bid out these second- or, sometimes, third-hand homes to prospective buyers. But they also book effortless sales just from taking dozens of calls a day from clients.

The secret is to give people incentives to entice them to take a risk on a foreclosed house, Janette Abad Santos, assistant vice president of Philippine National Bank's (PNB) Asset Management Group, told abs-cbnNEWS.com in an interview.

Foreclosed homes could sell for a fraction of their worth in the market, and may seem like a steal. However, if one's not careful in choosing, these kinds of homes could also harbor unpleasant surprises and could run into a lot of money for those who don't have much of it to start with.

Banks' bad assets

Simply put, foreclosure happens when a buyer fails to make timely repayments for a bank loan it used to pay for a property. The lender, after filing a notice of default, will then initiate the legal process to reclaim ownership of the particular asset.

This is perhaps the last thing in the mind of home buyers. Yet, many times, they are confronted with the problem due to unexpected circumstances like when they lose their jobs or incur huge medical expenses.

Meanwhile, in as much as banks want to repossess a property from a delinquent borrower, they don't really like keeping it.

Once banks take a property back, this falls in the list of their real and other properties acquired (ROPOA), which they sell at market value or below, depending on the condition of the properties.

Banks are in the business of lending and investing money, so naturally, they want cold cash. To them, foreclosed properties are bad assets that if they don't dispose of, would pile up and get too costly.

Bad assets punish banks in three ways. Banks do not only get stuck with an asset they could not collect and earn from, they also have to spend resources--from lawyers to security guards in the property--to justify why the asset should beawarded to them.

And, as a lesson from the 1997 financial crisis when aggressive bank lending fueled a real estate boom, Philippine banks are also mandated to set aside buffer funds--usually resulting in the need for the owners to cough up more funds to increase their capital base. The buffer funds are required to cover the banks' risk of eventually not collecting what they lent out, most of which are actually their depositors' and investors' money.

Lastly, having too many bad assets in their books doesn't speak well of the banks' claim of business prudence. Bad assets show off their poor lending decisions.

At end-September, Philippine commercial and universal banks' ROPA stood at P142.39 billion, down by 1.97 percent from P145.25 billion in the previous month, data from the central bank showed.

Big discounts

The buildup in banks' bad assets can't be helped, especially when the time between foreclosing a property and selling it takes too long, said Abad Santos.

"Before a property is foreclosed, the owner is given a year or so to remedy the soured loan. If he fails to, then the foreclosure proceeding begins. Even when the property is already transferred to the bank, we cannot sell it until a year after to give the former owner a chance to redeem his property," she explained.

As banks get loaded with foreclosed assets, they become more willing to negotiate with interested buyers who often pull an offer off the table and haggle. Such is the case with PNB.

In the industry, according to Abad Santos, PNB holds the largest inventory of foreclosed properties, with roughly 15,000 real estate products, of which 11,000 are residential houses, lots or the combination of both priced at P1 million and less. The bank's properties in all are worth a hefty P30 billion in market value.

But it does not expect to recover the full amount anymore.

"The bank normally sells a property at market value. However, like a tiangge (flea market), if you want to sell fast you should be willing to bring down your prices," she noted.

Abad Santos said PNB offers discounts of between 10 to 30 percent on homes. Aside from this, the bank also provides in-house financing carrying a fixed interest of as low as 8 percent over a period of one to 10 years, for properties worth P1 million and below; and up to 12 percent over five to 10 years for those that are above P1 million. Industry rates are basically in the same range.

Behind the discount

These discounts have a story that wise homebuyers need to know to fully understand why foreclosed properties are priced as such.

Banks are wise. In this centuries-old business of lending, they are fully aware that it is inevitable to encounter borrowers who couldn't pay up, whether due to bad business bets or because of issues that are beyond their control, such as the tumbling of the entire local economy.

Thus, right at the start when borrowers apply for a loan, banks already asses the collateral offered--usually a real estate property--based on the most conservative of standards. The most prudent banks in the Philippines usually value the collateral property being offered a few notches below their current market price.

For example, a Fort Bonifacio condominium owner might have bought the unit at about P5 million, but the conservative banks would asses it at P4.8 million or lower, depending on the banks' perception of price risks, which could be influenced by oversupply or inflation in construction materials.

It is from this assessed value that the banks would now base how much they will lend to the borrower.

Currently, banks lend only the equivalent 60 percent of the assessed value of the property. In the Fort Bonifacio unit example, that means the bank will only lend P2.88 million to the borrower.

Banks say the property owner should shoulder the remaining 40 percent of the property's value (equivalent to P1.92 million in the Fort Bonifacio example) as a proof of the borrowers earnestness. By shouldering a portion of the property's value, the banks don't end up financing the entire deal.

But that's just one way to put it.

The other way is this: Banks know that when bad assets pile up, they will have to spend that 40 percent (that P1.92 million) in legal fees during numerous court proceedings, and litigation and documentary requirements, and in some instances, even hiring security guards to make sure illegal settlers don't inhabit the property, thus further reducing its resale value.

Obviously, banks would like to recover 100 percent of what they lent out, and hopefully the legal and other costs they incurred in trying to recover the property and cashing it in.

To the second—or third—hand homebuyers, discounts in foreclosed assets that go up to 40 percent mean the banks are already willing to absorb their legal and other costs.

In the Fort Bonifacio example, it means the bank is willing to swallow the P1.92 million (the 40 percent portion) as a foregone resource just so it could recover the P2.88 million (the 60 percent portion) that it lent out.

In other words, the discounts depend on how desperate the individual banks are to convert these foreclosed properties into cash. The more foreclosed properties they have, the more the probability that they are selling these foreclosed assets at firesale prices.

Buyer beware

Buyers also need to beware of deep discounts. More often than not, there is a catch.

Usually, foreclosed properties at rock-bottom prices have "defects"-- from an impending legal case to the perennial problem of squatters. Sometimes, it could be that the title of the property has not been transferred under the bank's name yet, the reason why an irked former owner won't leave the place.

"These are some of the encumbrances that a buyer will have to take on when purchasing cheap properties. They have to keep in mind that all banks sell properties on an 'as-is, where is' basis," said Abad Santos.

A buyer is therefore advised to thoroughly inspect a foreclosed home before purchasing it. Or else, he could be snatching up a deal that's not as good as he first thought.

Diverse market

Abad Santos described the market for foreclosed homes as "vast."

"We have buyers coming from the A, B and C segments. These include big businesses, individual investors, overseas Filipinos and start-up families," she said.

And behind every home purchase she witnessed was an interesting sub story.

There were those who have turned buying and selling properties into a business while some just wanted an affordable place they can call their own.

Abad Santos recalled that they had foreign clients who got homes for retirement purposes or simply to have a proof of investment in the Philippines.

Overseas Filipinos, in particular, would usually buy homes for their families in their hometowns.

Many times, however, a former owner of a foreclosed home and his family would share expenses to win the property back because of its sentimental value.

"Largely, purchases here are emotional. But you see, that's how we Filipinos value our families and the things we share with them like our homes," she added.

as of 12/05/2008 8:13 PM

Monday, December 8, 2008

TBs’ NPL ratio up in August ‘08

December 3, 2008 5:44 pm by pna

MANILA, Dec. 3 -– Non-performing loans (NPLs) of thrift banks (TBs) in the country increased by 4.82 percent month-on-month in August 2008 resulting to a 0.29 percentage point jump of the industry’s NPL ratio to 6.63 percent.

The Bangko Sentral ng Pilipinas (BSP) on Wednesday said that amid the increase in TBs NPL ratio from the previous month’s 6.34 percent, the latest figure is 0.23 percentage point lower against year-ago’s 6.86 percent ratio.

It also said that “the industry was able to sustain a single-digit NPL ratio for the past 41 months and pinned it below the pre-crisis ratio of 7.74 percent (as of end-June 1997) for the past 14 months.”

Relatively, the industry’s NPL ratio exclusive of interbank loans (IBL) also rose to 7.08 percent from month-ago’s 6.90 percent since the higher NPLs surpassed the 2.20 percent growth in core lending, which amounted to P279.38 billion.

The central bank, however, said that the latest NPL ratio exclusive of IBL is better than the 9.12 percent during the same period last year after core lending went up by 19.17 percent year-on-year.

Restructured loans (RLs) also went up to P4.57 billion last August, 2.48 percent higher month-on-month, making the RLs to total loan portfolio (TLP) ratio higher at 1.52 percent from the previous month’s 1.49 percent.

An increase was also noted in the industry’s ratio on real and other properties acquired (ROPA), otherwise known as foreclosed assets, over gross assets (GAs) to 5.53 percent from 5.44 percent a month ago after foreclosed assets jump by 1.70 percent to P27.49 billion, “offsetting the negligible increment in GAs.” Year-ago’s ratio is lower at 6.83 percent.

And because of the higher NPLs, TBs non-performing assets (NPA) ratio went up to 9.55 percent from month-ago’s 9.28 percent but is better than year-ago’s 10.18 percent.

The NPL coverage ratio went down by 0.61 percentage points to 50.89 percent from last July’s 51.50 percent but this is better than year-ago’s 50.40 percent.

NPA coverage ratio stood at 27.89 percent from 27.79 percent last July because of the 3.33 percent improvement in NPA reserves. The latest NPA coverage ratio is better than year-ago’s 26.79 percent ratio. (PNA)

posted at: balita.ph

Thursday, November 27, 2008

How To Sell Houses FAST in a SLOW Market

By: Trace Trajano

The pundits of CNN, MSNBC, Fox News and other news agencies are all saying the same thing: "It's impossible to sell houses in today's market. The sky is falling. The US is in a recession and the foreclosures are only going to increase."

Boy are they wrong.

Specially about NOT being able to sell houses. You want proof?

What about the checks I have received in the past 4 weeks alone:

week of 11/3 - houses sold - 1; check received: $93,000+
week of 11/10 - houses sold - 0; check received: $0
week of 11/17 - houses sold - 2; checks received (total): $18,000; additional amount expected when we close: $2,750
week of 11/24 - houses sold - 2; checks received (total): $2,000; additional amount expected when we close: $5,500
TOTAL AMOUNT CHECK RECEIVED: $113,000
additional amount expected when deals close: $ 8,250

I am not showing off these figures to brag. Rather, I am proving a point. In today's tough market, it's possible to sell houses LIGHTNING FAST.

On Monday, December 1, 9 PM Eastern or December 2, Tuesday 10 AM Philippine time, I am going to reveal to my student-partners and franchisees the exact same strategies I use to sell houses LIGHTNING FAST in today's market.

Sorry. This webinar is open ONLY to my student-partners and franchisees. They paid good money to become my students and so they deserve a lot of value in return. If you want to enroll as my student-partner, email me at MoneyYoda@GMail.com

BUT, in the spirit of Thanksgiving, let me give you some overview of what I will discuss with them on Monday (Tuesday in the Philippines):

1. To sell quickly, build a buyers' list first. It's easier to find a house for a buyer than a buyer for a house. How do you do this exactly? I will reveal it to my students in the webinar.

For example, I found 309 buyers who are landlords or renovators who bought houses in the past 6 months. I will reveal to my students how I did this exactly. It's a secret method that only 1% of the real estate investors know. To find out what this "secret" method is, email me at MoneyYoda@GMail.com

2. Learn how to market properties properly (what a tongue twister!). How do you do this? In the webinar, I will present 20 online and offline ways to sell a property. In this market, posting an ad in the paper or putting your house up for sale with an agent are not enough.

3. Learn about your market. Find out what is selling – what type of house, what price range. Who are buying them? By doing this, you will avoid buying the wrong properties in the wrong areas and selling them to the wrong buyers.

4. Learn how to buy properties CHEAPLY. I am not talking about 10-20 percent discount. I am talking about 40-50% discount. To sell a $100,000 house fast in this market, you have to buy that house for $50,000 and sell it for $80,000.

5. Learn about financing. It’s all about the money. Learn what banks are offering. Learn about creative financing like owner financing and lease options. The more flexible you are in helping your buyers, the easier it is for you to sell your properties. Again, during the webinar, I will reveal these financing options to my students and franchisees. To enroll in my student-mentoring program, email me at MoneyYoda@GMail.com

Dedicated to your success,

Trace

P.S. Unlike other gurus that charge you an arm and a leg to sell you products that no longer work in this market, my student-mentoring fee is a mere $49 per month and you get access to all the know-how and I partner with you to help you buy and sell your properties. Interested? Email me NOW at MoneyYoda@GMail.com

P.P.S. There is a $997 set up fee to join my mentoring-partnership program. However, if you sign up before December 1, I will waive that fee. Email me NOW to sign up (MoneyYoda@GMail.com)

P.P.P.S. My students and franchisees are complaining why I am giving this mentoring-partnership program so cheaply. I will likely increase the price significantly. Email me NOW at MoneyYoda@Gmail.com!

Wednesday, November 26, 2008

Loans and Mortgages

FOOTSTEPS AND FINGERPRINTS
by: NANCY RUSSELL CATAN

Nowadays we hear a lot about loans and foreclosures due to the tightening economic situation worldwide. Many people especially in the States who have mortgages on their homes and even on the physical assets in their businesses are facing serious downsizing and/or bank ruptcy. When we get a loan from a bank or financial institution, we are required to put up collateral for security, to insure that we will pay back the loan. If we don’t pay it back as agreed, then we lose our collateral to the financing institution.

Whether affected by the current economic crisis or not, we, all of us, have outstanding social mortgages.

What is a ‘social mortgage’? Property under a social mortgage has an intrinsically social function, in that it is supposed to, in one way or another, contribute to the good of society, to all members of our society.

We often consider money, wealth, and success as desirable goals of work, and we equate these goals with the material possessions that we acquire and own – land, buildings, vehicles, and other tangible assets.

Yes, our work needs to be justly remunerated. Yes, as workers we must be rightly compensated for our efforts. But we also need to recognize that we are not called to work just to be able to “have” or acquire more and more, but that our work must enable us to “be” more fully human not only as individuals, but also as contributors to the good of all persons, for the benefit of society in general. Everything we have is, in fact, on loan from God, our Father and Creator. He has given us stewardship over our possessions and acquisitions through a “social mortgage”.

As responsible stewards we must work to be able to return these things to Him, or to those in need, those who have less in life than we do. We should pay off our social mortgage to those who are least, last, and lost. And not only look to paying off the mortgage but also the interest it has earned.

If we have many employees, we must consider the welfare not only of the employees, but also of their families. How are we improving their lives?

We need to ask ourselves: am I really using all the home appliances I have, or are they just displayed to promote my social status, or do they just lie around gathering dust because I only use them on anniversaries and birthdays? Are my closets full of clothes that I only wear maybe once a month, or even once every six months? The bottom line is: am I using the things I have, my assets, material possessions, my business integrity, skills, talents, and treasure to promote the common good, not only my good? How well am I paying off my ‘social mortgage’? If God owns it all, what I am doing with it?

Tuesday, November 4, 2008

SSS' FORECLOSED PROPERTIES OFFERED AT 5% DEPOSIT

PHILIPPINES LATEST NEWS
2008-10-31 14:02:34 - MANILA. Easier purchasing rules are unveiled at the Housing Fair. SSS relaxes foreclosed housing sale conditions

By Catherine J Teves


The Social Security System (SSS) is offering, through its year-long Housing Fair III program beginning October 2008, more lenient terms for prospective buyers of the agency's acquired residential properties.

MORE PHILIPPINES NEWS: www.balitapinoy.net

SSS lowered its required downpayment from 10 percent to five percent of a property's selling price which is based, in turn, on its fair market value.

"This

is among the changes we made so that more people can avail of properties the SSS is disposing," the agency's Real Estate Department Section Head Tomas Ramirez said Thursday at the on-going third Housing Fair in Mandaluyong City.

He also said SSS raised from PhP300,000 to PhP500,000 maximum selling price to be levied six percent interest.

Properties selling above PhP500,000, not PhP300,000 as previously required, will be charged nine percent interest.

Ramirez further said SSS adjusted applicants' maximum age limit from 65 to 70 years.

"Sixty-five year-olds can still apply for a five-year housing term," he noted.

He assured properties for sale are covered by fire insurance.

SSS' October 2008 inventory shows 427 single detached houses and other residential properties nationwide, collectively valued at PhP185.97 million, are up for disposal.

Prospective buyers can contact SSS Real Estate Department at (02) 920-64-01 locals 5121 to 5127 to inquire about these properties' location and other details.

To further encourage prospective buyers, Ramirez said SSS increased from five to 10 percent its discount on cash sales made during Housing Fair III.

SSS is also giving buyers an additional 10 percent discount if they're able to evict occupants illegally occupying properties they bought.

This program is SSS' support to the Housing Fair government-run Housing and Urban Development Coordinating Council spearheaded yearly since 2006.

SSS' Housing Fair program aims to help more Filipinos acquire their own houses so nationwide housing backlog can be reduced.

This program also seeks to help dispose SSS-acquired residential properties.

"Through Housing Fairs I and II, SSS was able to sell 454 residential properties worth some PhP198.6 million," Ramirez noted.

He said Filipinos working in both public and private sectors as well as overseas Filipino workers can buy properties under Housing Fair III.

Non-SSS members can also apply for Housing Fair III residential properties, he added.

Monday, November 3, 2008

Please Check this … the acquired assets - FIRST COME , FIRST SERVED BASIS !

Application Procedure for

“Magaang Pabahay, Disenteng Buhay Program”

  1. Check on the list of the Fund’s available acquired assets for sale
  2. Secure, accomplish and submit two (2) copies of Reservation Form
  3. Receive duplicate copy of the Reservation Form duly signed by the Fund’s authorized representative. You will be given a priority number and take note of that priority number.
  4. Confirm your offer to purchase and pay the 5 percent downpayment within 5 days from date of reservation. Otherwise, the reservation shall be cancelled.
  5. The remaining 95 percent shall be paid either thru cash or Pag-IBIG Housing Loan.

Documentary requirements for purchase made through Pag-IBIG Housing Loan

  1. Housing Loan Processing Fee of P3,000.00
  2. Income Tax Return/ W2
  3. Certificate of Employment & Compensation (duly notarized)
  4. Latest (1) month Payslip (duly certified by the employer)
  5. Audited Financial Statement for Self-employed
  6. Latest Employment Contract for OFWs
  7. Photocopy of TIN Card & Cedula
  8. Member’s Status Verification Slip (MSVS)

About 5,000 Pag-IBIG Acquired Housing Units are up for sale of discounted rates from 15 percent to 25 percent discount.

Could be availed through

Cash Sale or

Housing Loan

> 6 percent interest rate > 30 years loan term

> 5 percent downpayment of discounted selling price

Location – > Davao City, Tagum City, Samal City, Panabo City, General Santos City

Koronadal City, Cotabato City, Kidapawan City, Tacurong City

Ø Compostela Valley Province, Davao del Norte, Davao Oriental,

Ø Davao del Sur, South Cotabato, Sarangani, North Cotabato,

Ø Maguindanao, Sultan Kudarat

For those of you who are interested please visit or call the following

Acquired Assets Unit of Pag-IBIG Fund

DAVAO CITY

2F Pryce Tower Condominium

JP Laurel Avenue, Davao City

Tel. No. (082) 224-4733

TAGUM BRANCH

2F Ramos Bldg.,

Arellano St., Tagum City

Tel. No. (084) 400-4698

GENERAL SANTOS BRANCH

2F RD Bldg.

Santiago Blvd., General Santos City

Tel. No (083) 552-7632

COTABATO BRANCH

6F CYM Bldg.

Don Rufino Alonzo St., Cotabato City

Tel. No. (064) 421-6946


Source: PAG-IBIG Fund South Mindanao

Western Visayas housing fair kicks off on Wednesday

October 27, 2008 11:51 am by pna

ILOILO CITY, Oct. 27 – Government and private employees and overseas Filipino workers (OFWs) looking for a lot or house and lot packages are the main target of the Western Visayas Housing Fair 2008 that will kick off here in Oct. 29.

Eva Marfil, regional manager of the Housing and Urban Development Coordinating Center (HUDCC) in the region, said the week-long activity is in line with the Shelter Month celebration this October.

It will showcase various housing projects of subdivision developers and items on sale or foreclosed properties of government housing agencies.

The activity seeks to raise the awareness of the public that there are housing projects that are available they can buy either on cash or installment basis.

These will include properties of the National Home Mortgage Finance Corporation (NHMFC), Pag-ibig Fund, Social Service System (SSS) and the Government Service Insurance System (GSIS).

She added that foreclosed properties of government financial institutions (GFIS) will be sold at a discounted rate.

The activity with the theme "Bakit ka Mangungupahan Pa Kung Kaya Mo namang Magkabahay Na" is now on its 5th year.

The exhibit, that will last until Nov. 4, will be held at the Robinson’s Place here. (PNA)

FFC/AJP/PGL

Source: News.balita.ph


Tuesday, October 28, 2008

Explain foreclosures, gov’t agency told

By Judy Quiros, Allan Nawal
Mindanao Bureau
First Posted 04:01:00 10/22/2008

DAVAO CITY, Philippines—The Ombudsman has given the government’s National Home Mortgage Finance Corp. (NHMFC) in Mindanao 15 days to explain why it foreclosed on a number of low-cost and socialized real estate mortgages and resold these to the Balikatan Housing Finance Corp. (BHFC), a private corporation.

Davao City Councilor Danilo Dayanghirang filed the complaint against the NHMFC and BHFC on Sept. 13, saying it was one of the “biggest scandals” under Vice President Noli de Castro’s administration as chair of the Housing and Urban Development Coordinating Council (HUDCC).

According to Dayanghirang, the NHMFC foreclosed on 9,000 homes in this city alone and transferred ownership to the BHFC, a subsidiary of Deutsche Bank Real Estate Global Opportunities based in Germany.

He did not say when the foreclosures started.

“I took up the cudgels for the city’s homeowners; this is a nationwide problem,” Dayanghirang said.

Last alternative

Lawyer Dante Rizada of the NHMFC’s legal department said the fund agency foreclosed on “thousands” of properties nationwide because they were considered “highly delinquent” accounts.

“Foreclosing properties is our last alternative. We want to understand [homeowners] but we also need to take the necessary steps to protect the agency,” Rizada said.

He said the NHMFC had given homeowners a chance to pay their amortization but financial difficulties prevented them from keeping up with the payments.

Rizada said that before foreclosing on any property, they send out demand letters and notices.

“But some homeowners abandon their property before the actual foreclosure,” he said.

Rizada declined to speak on the agreement between the NHMFC and BHFC.

Though Dayanghirang said the deal was irregular because it did not pass Congress. He also said the NHMFC was transacting business with a company it partially owned.

Dayanghirang claimed the NHMFC owned 41 percent of BHFC, while DB Global Real Estate Opportunities owned 51 percent.

Higher rates

While homeowners could still buy back foreclosed properties by dealing with the BHFC, Dayanghirang said they would have to pay higher interest rates.

The NHMFC only charges nine percent interest while the BHFC charges 14 percent interest.

He also said the BHFC did not offer loan condonation unlike the NHMFC.

Dayanghirang said he had asked Congress for help before he filed a complaint with the Ombudsman but nothing happened.

“Congress, specifically Speaker Prospero Nograles, said he would call for an immediate investigation of Balikatan but until now nothing has been done,” he said.

Source: Inq.NET


Monday, October 27, 2008

Think Rich Pinoy Event

Have Fun Learning Wealth Creation! Join Larry & The TRP Team

What : Think Rich Pinoy Workshop
When : November 22 ,2008, Saturday
Where: PhilamLife Building, Manila
Text : 0915-499-1999
Early Bird Fee: P 1475 / US 37 (Buy on or before October 3,2008
Normal Admission Fee: P 1975.00 / US 47
Email: richteamevents+blog@gmail.com

Friday, October 24, 2008

RP's key shelter agencies set for 2008 Housing Fair

Roxas City (23 October) -- Different key shelter agencies of the government are set for the three-day "Housing Fair" on October 29 to 31 at SM Mega Mall's Mega Trade Hall 1 and 2.

The fair is directed by President Gloria Macapagal – Arroyo in a Memorandum Circular 160 in line with the government efforts to make housing truly affordable and accessible to ordinary workers.

"The government through the Housing and Urban Development Coordinating Council (HUDCC), its key shelter agencies, namely, the Home Development Mutual Fund (HDMF), the National Home Mortgage Finance Corporation (NHMFC), the Home Guarantee Corporation (HGC), the Housing and Land Use Regulatory Board (HLURB), and the National Housing Authority (NHA), and the government financial institutions with home lending operations, have agreed to forge a strategic alliance towards the attainment of the goals and objectives of the National Shelter Program," said part of the circular.

The National Shelter Program is the government's channel to address the housing requirements of both the informal and formal sectors of the community.

President Arroyo has also signed recently the Socialized and Low-Cost Housing Loan Restructuring and Condonation Act of 2008 to give the underprivileged Filipinos the chances to save their homes from foreclosure thru a rational loan restructuring and condonation scheme.

The new law offers a rational loan restructuring and condonation program for the underprivileged Filipinos based on the credit worthiness and credit discipline of the borrowers and the financial viability of the lending institutions.

It is a welcome relief to thousands of Filipino families struggling to keep their loan-financed homes from foreclosure. (PIA)

Source: PIA Press Release

by A. Lumaque

Thursday, October 23, 2008

Explain foreclosures, gov’t agency told

By Judy Quiros, Allan Nawal
Mindanao Bureau
First Posted 04:01:00 10/22/2008

DAVAO CITY, Philippines—The Ombudsman has given the government’s National Home Mortgage Finance Corp. (NHMFC) in Mindanao 15 days to explain why it foreclosed on a number of low-cost and socialized real estate mortgages and resold these to the Balikatan Housing Finance Corp. (BHFC), a private corporation.

Davao City Councilor Danilo Dayanghirang filed the complaint against the NHMFC and BHFC on Sept. 13, saying it was one of the “biggest scandals” under Vice President Noli de Castro’s administration as chair of the Housing and Urban Development Coordinating Council (HUDCC).

According to Dayanghirang, the NHMFC foreclosed on 9,000 homes in this city alone and transferred ownership to the BHFC, a subsidiary of Deutsche Bank Real Estate Global Opportunities based in Germany.

He did not say when the foreclosures started.

“I took up the cudgels for the city’s homeowners; this is a nationwide problem,” Dayanghirang said.

Last alternative

Lawyer Dante Rizada of the NHMFC’s legal department said the fund agency foreclosed on “thousands” of properties nationwide because they were considered “highly delinquent” accounts.

“Foreclosing properties is our last alternative. We want to understand [homeowners] but we also need to take the necessary steps to protect the agency,” Rizada said.

He said the NHMFC had given homeowners a chance to pay their amortization but financial difficulties prevented them from keeping up with the payments.

Rizada said that before foreclosing on any property, they send out demand letters and notices.

“But some homeowners abandon their property before the actual foreclosure,” he said.

Rizada declined to speak on the agreement between the NHMFC and BHFC.

Though Dayanghirang said the deal was irregular because it did not pass Congress. He also said the NHMFC was transacting business with a company it partially owned.

Dayanghirang claimed the NHMFC owned 41 percent of BHFC, while DB Global Real Estate Opportunities owned 51 percent.

Higher rates

While homeowners could still buy back foreclosed properties by dealing with the BHFC, Dayanghirang said they would have to pay higher interest rates.

The NHMFC only charges nine percent interest while the BHFC charges 14 percent interest.

He also said the BHFC did not offer loan condonation unlike the NHMFC.

Dayanghirang said he had asked Congress for help before he filed a complaint with the Ombudsman but nothing happened.

“Congress, specifically Speaker Prospero Nograles, said he would call for an immediate investigation of Balikatan but until now nothing has been done,” he said.

Source: Inq.net


Friday, October 17, 2008

Arroyo to sign anti-foreclosure bill Monday

All Filipinos who are in the Philippine foreclosure industry ought to be aware of this new law:
MANILA, Philippines - President Arroyo will sign into law this coming Monday a bill providing for an anti-foreclosure program to benefit some 368,535 delinquent home borrowers who have debts worth about P66.69 billion.

House Speaker Prospero Nograles Jr. said that without the measure, the delinquent home borrowers would have rejoined the ranks of the homeless.
"This is part of the Arroyo government's numerous reform measures to shield our people from the current economic crisis. This measure will undoubtedly save many of our countrymen who face the grim prospect of losing their respective houses from joining the long list of the homeless," Nograles said in an article posted on the House of Representatives website.
He said the anti-foreclosure law is a reversal of the United States' bailout scheme that provided credit facilities to investment houses and banks that went bankrupt.
In the US, he said, they are bailing out those who facilitated the housing loans but are not saving the borrowers whose homes were foreclosed because of the subprime mortage crisis.
But in the Philippines, he said, "we are not bailing out those who provided the housing loans but we are saving the borrowers themselves."
Nograles, who has been pushing for the approval of the anti-foreclosure measure since 2001, commended the joint efforts of the House Committee on Housing and Urban Development chaired by Rep. Rodolfo Valencia and the Senate Committee on Urban Planning, Housing and Resettlement headed by Senator Juan Miguel Zubiri.
He added the program supports President Arroyo's social reform programs to mitigate the plight of the people against the ill effects of the economic crisis.
Valencia said the bicameral conference committee worked overtime to reconcile all minor differences between the two versions of the proposed "Socialized and Low Cost Housing Loan Restructuring Act of 2008" contained in House Bill 4220 and Senate Bill 1987.
The program will cover all socialized and low-cost housing loan accounts with any of the government financing institutions and agencies that have at least three (3) months of unpaid monthly amortizations, the original principal amount of which, does not exceed
P2.5 million.

The restructuring measure provides for the creation of a Congressional Oversight Committee composed of the Chairman of the Senate Committee on Urban Planning, Housing and Resettlement and the Chairman of the House Committee on Housing and Urban Development, four members each from the Senate and the House of Representatives.
Upon review and approval of the implementing rules and regulations, the oversight committee shall cease to exist, provided that an annual report on the loan restructuring and condonation program are regularly submitted to Congress by the GFIs and housing agencies.
Other authors of the measure include Deputy Speakers Amelita Villarosa and Raul del Mar, Reps. Mary Ann Susano, Rolando Uy, Thelma Almario, Eufrocino Codilla, Sr., Reylina Nicolas, Marcy Teodoro, and Edgardo Chatto.
"It will also be beneficial to the housing agencies and government financing institutions as not only will they be able to continue their collection of amortization, but will give them relief from the difficulty of evicting delinquent occupants and from the tedious and costly foreclosure procedures that average from P50,000 to P136,000," Zialcita noted.
According to Valencia, the law covers defaulting accounts even if the delinquent home borrowers have already availed of the benefits of previous restructuring programs.

"An application for restructuring shall not be charged a processing fee and no down payment shall be required for a borrower to apply for the benefits of this loan restructuring and condonation program," Valencia said.
Likewise, all penalties and surcharges shall be condoned upon approval of the restructuring application. As such, reasonable portion of the accrued interests will be condoned while the remaining accrued interests will be treated as non-interest bearing principals to be equally spread during the term of the restructured loan.
The restructured original principal loan will only be imposed an interest not higher than on the original loan or not more than 12%, whichever is lower.
The term of the housing loan may be extended for a period longer than its original term in order to lower the amount, provided that the extension of the restructured loan must not exceed the borrower's age at the time of application and the age 70.
However, Valencia added, the failure on the part of the borrower to pay any amortization during the three-year period shall be a cause for the housing agencies and government financing institutions to institute foreclosure proceedings against the property covered by the defaulting account.
In case of incapacity of a borrower, his legal heirs and successors-in-interest may assume payment of his outstanding loan provided that they pass the housing agencies' or government financing institutions' eligibility requirements.

Source of News: GMANews.TV