Pag-IBIG Fund • Official website

These guidelines shall apply to all CTS accounts, subject to the following conditions:

1. CTS accounts in default that are covered by the Buyback and Back-up Guarantee of the developer; and

2. Updated accounts wherein the original buyer opts to be substituted by another buyer upon the developer’s conformity. For updated accounts/seasoned for 24 months/eligible for conversion, the existing Guidelines of the Pag-IBIG Housing Loan Program on the purchase of residential unit (PRU) at the time of application shall apply.

Within ninety (90) days from the date of receipt of the Notice of Buyback, the developer shall inform the Fund in writing of the substitution indicating both the old and the new/substitute buyer.

If the developer fails to substitute the account in default within the prescribed period, Pag-IBIG Fund shall offset the amount against subsequent takeout proceeds or from any amount due the developer within five (5) days from the date the 90-day grace period expires, if applicable; otherwise, the Fund shall call on the back up guaranty.

The developer may be allowed to replace/substitute the original buyer through the following modes:

1. Assumption of CTS obligation/mortgage

The developer shall provide a new buyer who is eligible to assume the loan obligation of the original buyer, subject to the following considerations:

a. The account in arrears shall be updated;

b. The outstanding balance of the original buyer shall be assumed;

c. The substitute buyer shall pay the same monthly amortization together with the monthly contributions, insurance premiums, and other fees.
The acquisition by the substitute buyer of the right under the CTS is subject to the superior right of Pag-IBIG Fund, and furthermore it shall bind the substitute buyer in the same manner and conditions as if he were the original buyer.

d. All actions, remedies, equities, as well as any other right of recourse enforceable by Pag-IBIG Fund against the original buyer shall now be enforceable against the substitute buyer.

e. The substitution of the previous CTS buyer with a new buyer shall be subject to the conformity of the previous buyer and Pag-IBIG Fund.

2. New CTS/REM

The developer shall provide a new buyer who is eligible to avail of a housing loan under the existing guidelines of the Pag-IBIG Housing Loan Program.

1. Once the Deed of Transfer of Rights with Assumption of Obligations (DTRAO) is executed by the previous buyer, all his rights and interest over the property shall be waived and transferred to the substitute buyer.

2. The original/former buyer whose REM/CTS has been assumed/substituted due to default shall no longer be entitled to avail of a loan under the Pag-IBIG Housing Loan Program.

3. The retention value on conversion deducted from the takeout proceeds of the original CTS account shall be recorded in favor of the new buyer and shall be refunded by Pag-IBIG Fund to the developer only when the CTS account assumed is already due for conversion to REM.

4. The premiums for the unexpired term of the insurance shall be remitted to the insurance pool for the account of the old buyer. The new buyer shall be covered by a separate Sale Redemption Insurance (SRI).