Delinquent borrowers of the old housing loan program of the Government Service Insurance System (GSIS) get a reprieve as the pension fund offers them a chance to save their homes from foreclosures or cancellation of their Deed of Conditional Sale under a new condonation program.
As an offshoot of the Republic Act 9507 or the Socialized and Low-Cost Housing Loan Restructuring Act of 2008, the GSIS will implement the Housing Loan Restructuring and Condonation Program. This program will cover housing loan obligations of delinquent borrowers with accumulated arrearages equivalent to at least six monthly amortizations, regardless of the original principal amount of the loan.
The law, which took effect on March 16, also covers home borrowers and installment buyers of the Social Security System, the Home Development Mutual Fund or Pag-IBIG Fund, the National Home Mortgage Finance Corp., the Social Housing Finance Corp., the Home Guaranty Corp., and the National Housing Authority.
GSIS president and general manager Winston Garcia said the program is a result of President Arroyo’s goal to help both borrowers and lending institutions cope with the effects of the ongoing financial crisis.
“The program saves borrowers from having their homes foreclosed and gives them a chance to finally complete the purchase of their house. On the other hand, government financial institutions like the GSIS can get their non-performing loans liquid again,” Mr. Garcia said. “This is a win-win solution for both parties. This is really helpful during these times of financial difficulties.”
The GSIS implemented the program last April 16 and will run for 18 months. Application forms for this program are now available in all GSIS servicing offices.