State pension fund gives lenders a break
State-run Government Service Insurance System (GSIS) has announced a restructuring program for delinquent members with housing loans, in line with efforts to clean up the fund’s balance sheet.
In a statement Tuesday, the GSIS said the restructuring program would help the fund’s members settle their arrears or update their housing accounts without being overburdened by penalties.
“The GSIS will condone all unpaid penalties and surcharges and grant extended payment terms for those qualified to restructure their accounts,” GSIS President Robert G. Vergara said.
Members whose homes have already been foreclosed are also eligible for the restructuring program, as long as the properties have not yet been auctioned.
“Even those with current accounts will benefit from the program, as their monthly amortization will be reduced through an extended payment term if they apply for restructuring,” he said.
The GSIS said the auction of the property may be postponed and the foreclosure case or cancellation of the Deed of Conditional Sale account will be withdrawn.
The program also grants incentives for accounts with arrears that the borrowers intend to pay in full. Those with arrearages of not more than six months will get 100 percent discount on unpaid interest, penalties and surcharges.
“Those accounts with arrearages of more than six months will get discounts based on their payment performance record,” Vergara said.
The program is open to: borrowers whose accounts are current or updated, awardees of accounts with cancelled deeds of conditional sale but are not yet sold, and accounts under foreclosure proceedings.
The GSIS said heirs of deceased borrowers who will be able to meet the eligibility criteria and documentary requirements would also be allowed to restructure their loans.
“However, borrowers whose properties have been auctioned and who were already issued a certificate of sheriff sale can no longer avail themselves of the program,” Vergara said.