Note: This program has ended.
The HOUSING LOAN PENALTY CONDONATION PROGRAM or HLPCP aims to provide a final chance for all housing loan borrowers with past-due housing loan obligations to fully pay, update, and avail of an affordable payment scheme to avoid the foreclosure of their mortgaged property.
It also aims to assist delinquent housing loan borrowers in maintaining possession of their collateral properties.
The HLPCP can be availed of either through:
- Full payment of the loan, or
- 25% down payment of the total outstanding balance excluding penalties and by restructuring the remaining 75% to be paid within 24 monthly equal installments.
The availment period for HLPCP is from May 25, 2022 up to June 30, 2022 only. After June 30, the SSS shall strictly pursue the foreclosure of mortgage.
Read also Circular 2022-010
Who are the covered borrowers qualified for condonation without/with restructuring under the HLPCP?
FOR CONDONATION WITHOUT RESTRUCTURING
All housing loan borrowers, duly designated successor/s-in-interest/legal heir/s with past due housing loan obligations, whether or not the original or previously restructured terms have already expired; or
Housing loan borrowers whose property has been foreclosed and undergone sheriff auction sale with SSS as the winning bidder and the Certificate of Sale has not yet been registered, under the following SSS housing loan programs:
- Direct Individual Housing Loan Program including duplex housing loan accounts
- Direct Housing Loan Facility for Overseas Filipino Workers (OFWs)/ Worker’s Organization Members (WOMs)
FOR CONDONATION WITH RESTRUCTURING
All housing loan borrowers, duly designated successor/s-in-interest/legal heir/s with past due housing loan obligations under the following SSS housing loan programs, provided that at least one (1) month of the original or previously restructured loan term remains:
- Direct Individual Housing Loan Program including duplex housing loan accounts
- Direct Housing Loan Facility for OFWs/WOMs
Who are eligible to apply for the program?
Eligible to apply are the following:
- All housing loan borrowers with past-due* housing loan obligations
- Successor/s-in-interest** or Legal Heir/s*** applicant/s who are SSS members to be able to avail of the Condonation with Restructuring. Otherwise, they shall be allowed to apply for Condonation Without Restructuring only.
- Under Condonation with Restructuring, the housing loan account must not be expired, with at least remaining one (1) month of the original or previously restructured loan term.
* Past due – a loan that is delinquent for a period of at least six (6) months as of the filing date of application within the condonation period.
** Successor/s-in-interest – third party/ies who have assumed the original mortgage, as supported by legal documents.
***Legal Heir/s – person/s called to the succession of the mortgaged property and/or mortgage loan either by the provision of a will or by operation of law per the Civil Code of the Philippines
What are the payment terms?
FOR CONDONATION WITHOUT RESTRUCTURING
Full Payment – one-time payment (cash or manager’s check) of the outstanding principal, interests, insurance dues, and legal expenses, within ninety (90) calendar days from receipt of notice of approval of the application.
FOR CONDONATION WITH RESTRUCTURING
- 25% down payment (cash or manager’s check) of the outstanding principal, interests, insurance dues, and legal expenses within 90 calendar days from receipt of notice of approval of the application.
- Restructuring of the remaining 75% payable in twenty-four (24) monthly equal installments. The first amortization shall start on the month following the date of receipt of the applicant’s 25% down payment. The payment deadline shall be on or before the 10th day of the month following the applicable month.
- The housing loan borrowers/successor/s-in-interest/legal heir/s shall be required to issue 24 post-dated checks as payment for the monthly amortization.
- For successor/s-in-interest and legal heir/s applicants, their age must not exceed sixty (60) years old at the time of the restructured loan maturity.
- In the case of several successor/s-in-interest/legal heir/s, the age of the oldest successor-in-interest/legal heir shall be considered in the computation of the restructuring term unless one of the successor-in-interest/legal heir shall be appointed as a filer, and the filer’s age shall be the basis in the computation of the restructuring term.
How is the restructured amount computed?
The restructured amount shall be the sum of the outstanding principal balance, interests, insurance dues, and legal expenses including attorney’s fees if any.
How much is the interest rate for Loan Restructuring?
The interest rate is 6.0% per annum, which shall be fixed for the term of the loan.
What happens upon full payment of the loan?
All unpaid penalties shall be condoned upon full payment of the outstanding principal balance, interests, insurance dues, and legal expenses including attorney’s fees if any.
What are the penalties for unpaid monthly amortization on the restructured loan?
Any unpaid monthly amortization on the restructured loan after the due date shall be subject to a penalty of 1% per month until fully paid.
What happens when the loan becomes delinquent beyond six months or when the term expires and there is still an outstanding balance?
Under Loan Restructuring, the principal balance should be zero at the end of the restructured loan term. If the restructured loan term expires and the loan remains outstanding, or if the restructured loan becomes delinquent beyond six months, the proportionate balance of the condonable penalties shall revert to and form part of the total obligation, which shall be due and demandable, and the mortgage shall be subject to immediate foreclosure.
Are restructured loans covered by insurance? How are these paid?
- The original housing loan borrower/designated successor/s-in-interest/legal heir/s shall be covered by a Mortgage Redemption Insurance based on the restructured loan amount.
- The mortgaged property shall be covered by Fire and Earthquake Insurance based on either the original loan or restructured loan amount, whichever is higher.
- Insurance premiums shall be included in the housing loan amortization to be paid by the housing loan borrower/successor/s-in-interest/legal heir/s for the duration of the restructured loan.
When are the restructured loans considered in default?
A restructured loan shall be considered in default if it has accumulated arrearages equivalent to at least six (6) monthly amortizations. In such cases, SSS shall pursue the foreclosure of the mortgage.
What are the documentary requirements to apply for the HLPCP?
The member-borrower must submit the following:
- Application Form
- Social Security ID/Unified Multi-purpose Identification Card, or in its absence, any government-issued ID cards/documents with photo, signature and underwent biometric data capture process such as, but not limited to, the following:
Primary ID cards/documents Issued by Philippine Identification (PhilID) card Philippine Statistics Authority (PSA) Driver’s License Land Transportation Office Passport Department of Foreign Affairs/ Foreign Government Postal Identity Card Philippine Postal Corporation Seafarer’s Identification & Record Book (Seaman’s Book) Maritime Industry Authority Voter’s ID Card Commission on Elections NBI Clearance National Bureau of Investigation Alien Certificate of Registration Bureau of Immigration Firearm Registration Philippine National Police License to Own and Possess Firearms Permit to Carry Firearms Outside of Residence - Notarized Special Power of Attorney (SPA) valid for 6 months is issued in the Philippines or 1 year if issued abroad from the date signed, IDs of both representative and applicant, if the applicant is representative of the housing loan borrower/successor-in-interest/legal heir/s.
- If Legal Heirs – PSA issued copy of borrower’s Death Certificate and Decision on the Judicial Settlement and Certificate of Finality of Decisions/Notarized Extra-Judicial Settlement (published), applicable affidavit, and SPA (if applicable).
- If Successor/s-in-Interest – Notarized Deed of Sale/Deed of Sale with Assumption of Mortgage, applicable affidavit, and SPA (if applicable).
- Updated Tax Declaration of Land and Building and Official Receipt or Tax Clearance for the current year (for Condonation with Restructuring).
Where can a member-borrower file the application for HLPCP?
The filing of the application shall be as follows:
- For NCR- Housing and Acquired Asset Management Department (HAAMD), SSS Main Office
- For Outside NCR- Housing and Acquired Asset Management Section (HAAMS)
Central Luzon – HAAMS Tarlac
Southern Luzon – HAAMS San Pablo
Northern Luzon – HAAMS Baguio
Bicol Region – HAAMS Naga
Central Visayas – HAAMS Cebu
Western Visayas – HAAMS Bacolod
Southern Mindanao – HAAMS Davao
Northern Mindanao – HAAMS Cagayan De Oro
Western Mindanao – HAAMS Zamboanga
