NHMFC borrowers with expired loans get relief

Delinquent housing loan borrowers under the Unified Home Lending Program (UHLP) whose repayment terms have expired will receive a new loan relief from the National Home Mortgage Finance Corp. (NHMFC) in the form of refinancing their loans with an extended term of up to 10 years.

Lawyer Angelico T. Salud, NHMFC president, announced that this new repayment facility for delinquent borrowers was recently approved by the NHMFC board of directors, chaired by Housing Secretary Michael T. Defensor, to assist economically-distressed housing beneficiaries and to boost loan collections.

Affected borrowers may avail themselves of the extension of loan term within six months form the expiration date of their loans, he said.

Eligible for extension of loan term are UHLP loans whose original loan terms shall have expired, with outstanding amortization balance as of date of application for term extension; and where at least 50 percent of the original loan shall have been already settled, according to Salud.

If less than 50 percent of the original amount had been paid, the original borrower, or the one who has assumed the loan, may still avail of this facility, provided that he is willing to execute a memorandum of agreement with a dacion en pago on the mortgaged property.

Said agreement provides, among others, that in case of default in payments for at least six months after the effectivity of loan term extension, NHMFC may proceed with the registration of the dacion en pago with the proper Registry of Deeds.

The loan, with extended term, shall be the total amortization balance at maturity date of the original loan, plus broken period interest on the said balance coputed from the date the loan expired, up to the time of borrower's application for loan term extension, less the required downpayment of at least 10 percent of the total amortization balance, including the broken period interests charged.