Pag-IBIG Rent-To-Own Program (Temporarily suspended since October 19 2006 until further notice.)
HDMF Circular No. 177-C
OBJECTIVE
The Program is aimed at instituting a mechanism through which the HDMF shall further expedite the recovery of its investments in non-performing mortgage loans, and provide Pag-IBIG members, whose current income cannot sustain the monthly amortization on a Pag-IBIG housing loan, with a facility that will provide affordable housing, and ensure home ownership by the time they become eligible for such loan.
THE RENT-TO-OWN SCHEME
Housing units acquired by HDMF shall be leased to qualified Pag-IBIG members, who shall enter into a Contract of Lease with Option to Purchase with HDMF, for a period of not more than five (5) years.
At the end of the term of the lease, a Lessee who complies with the provisions of the Lease Agreement, and who qualifies for a Pag-IBIG housing loan, shall be required to exercise his option to purchase the leased housing unit.
A Lessee who does not exercise his option to purchase shall not be allowed to occupy the housing unit after the expiration of the Contract of Lease.
ELIGIBILITY REQUIREMENTS
An applicant shall satisfy the following requirements to qualify under the Rent-to-Own Program:
1. Must be a contributing Pag-IBIG member at the time of application;
2. Must have a monthly gross family income of at least P4,000. For this purpose, gross family income shall be defined to mean the income of the members of the family up to the 1st degree of affinity or consanguity;
3. Must not be a homeowner;
4. Must not have an outstanding housing loan from any financial institution, whether public or private;
5. Must have the legal capacity to enter into a contract;
6. Must not have previously availed of the Rent-to-Own Program.
TERMS AND CONDITIONS OF THE LEASE
1. Monthly Rental
The Fund shall set the monthly rental on the unit to be leased on the basis of the prevailing rental rate in the area, which shall not be lower than one thousand pesos (P1,000.00).
The monthly rental shall be increased annually by 10%, or at a rate that shall allow the monthly rental to equal the theoretical monthly amortization at the end of the term of the lease, and shall be applied as payment on the purchase price of the property only upon the Lessee’s exercise of the option to purchase.
2. Advance Rental and Deposit
Upon signing of the Contract of Lease, the Lessee shall be required to pay one month's rent in advance and deposit an amount equivalent to two month's rent.
The rental deposit shall not be applied to monthly rentals during the term of the lease. It shall be used to cover unpaid bills, as well as the expenses necessary to repair any loss or damage to the property (except normal wear and tear) attributable to the fault or negligence of the Lessee who does not exercise his option to purchase, and is required to vacate the property upon the expiration of the Contract of Lease.
3. Payment and Remittance of Monthly Rental
The Lessee shall, without need of demand, pay the monthly rental in cash or check to any Pag-IBIG branch office or to any authorized Pag-IBIG collection agent on or before the 20th day of the month following the execution of the Contract of Lease with HDMF, and every month thereafter.
4. Penalty Charge
The Lessee who fails to pay the rent within the month that the payment is due shall be charged a penalty of 1/20 of 1% of the amount due per day of delay, reckoned from the 21st day of the month that payment is due.
5. Default
The Lessee shall be in default when he fails to pay three (3) consecutive monthly rentals, and/or three consecutive monthly Pag-IBIG contributions.
6. Term of Lease
The property subject of the Contract shall be leased by HDMF for a period of not more than five years.
7. Substitution of Lessee
In the event of the Lessee's death or incapacity to pay the monthly rental on account of loss of income due to physical disability or unemployment and such other meritorious reasons acceptable to the Fund, the Lessee may be substituted by a member of his family up to the 1st civil degree of affinity or consanguity. The monthly rentals paid by the original Lessee shall inure to the benefit of the substitute Lessee.
8. Termination of the Contract
HDMF shall terminate the Contract of Lease on the following grounds:
1. Default in monthly rentals;
2. Default in Pag-IBIG membership contributions;
3. Violation of any provision of the Contract;
4. Fraud and misrepresentation; and
5. Voluntary cancellation on the part of the Lessee.
9. Application of Total Accumulated Value (TAV)
In case the rental deposit is not sufficient to cover any indebtedness or obligation incurred by the Lessee for the duration of his stay in the property, the Lessor shall have the option to apply the TAV of the Lessee on any indebtedness, and shall be effected:
1. Immediately after cancellation/termination of the contract; or
2. Immediately after eviction.
TERMS AND CONDITIONS OF THE OPTION TO PURCHASE
1. Exercise of Option
HDMF shall require the Lessee to exercise his option to purchase not later than the end of the term of the lease. Failure of the Lessee to exercise this option within the given period shall be ground for the Lessee's eviction from the property.
2. Purchase Price
Shall be equal to the appraised value of the property as of the date of the execution of the Contract of Lease with Option to Purchase.
3. Purchase through Pag-IBIG Housing Loan
The Lessee may exercise his option to purchase by availing himself of a Pag-IBIG housing loan subject to the Pag-IBIG housing loan guidelines prevailing as of the date of purchase.
PAID TO CLICK
Thursday, October 11, 2007
HIRING A CONTRACTOR
TIPS BEFORE HIRING A CONTRACTOR
Governments and big corporations do it all the time. In fact, it's often part of written policy. Getting at least three quotes before choosing a building contractor to handle a job is smart for a number of reasons.
Whether you're adding on to your home or you want a big remodeling job done or even just need a new shower installed, getting quotes from contractors and checking out the different companies in the process just makes sense.
Think of your home as the center of your business and this concept begins to make a lot of sense. In essence, your home is in fact a business. The business is living. If your home isn't treated right, your family won't have a good surrounding for all the things that go into family life.
So, before you rush head-long into a construction job, picking the first contractor you find, here are some tips on what to ask for:
• Make sure you get at least three quotes from different contractors.
• While the quotes are in process, check into the different companies. Make sure their licensing and insurance are in order. A building contractor license is important factor.
• Check into their backgrounds and speak to past customers if possible. Also check with the Better Business Bureau to make sure no major complaints have been filed against any of the companies you're looking at.
• Once the quotes are in, read them over carefully. A good written estimate should include a basic materials list, costs for them as well as labor. An extensive quote will also include a listing of what can be expected, i.e., a detailed outline of the job's phases and materials.
After you have reviewed the quotes and checked the companies out, take your time to make a final decision. Any job on your home that's big requires some careful consideration. You don't have to choose a contractor on Day One of deciding to do the job.
Remember while the lowest bid might be the best one financially, if the contractor doesn't check out on all other points, it's not the best bid. Compare pricing estimates and other factors before choosing.
No matter the size of the job, a construction project on your home is a big deal. The finished work is meant to make your home nicer, bigger or more livable. Treat every step of the process with care and take a tip from government and other businesses by checking everything out before moving forward.
Avoiding Bad Contractors
Making the decision to build a house, add on to an existing one, remodel a room or have a repair job done can be a huge one. The investment is not only in a piece of property, it's also the structure your family calls home.
It's very important to hire only the best when it comes to contractors. Knowing you need to hire the best contractor for the job and actually finding that person can be two very different things though.
While most contractors are reputable and will do their best to complete the job within budget, on time and with quality results, it's a simple fact that not all contractors are good contractors. With this in mind, it's a good idea to know what to watch out for when it comes to scammers or even inexperienced professionals. Having a plan pays well when hiring a contractor.
In general, the following things are red flags:
• Those who solicit door-to-door. A good contracting company won't need to do this to drum up business.
• Discount offers that seem to good to be true. For example, if a "contractor" knocks on the door and offers to fix your damaged roof for a great rate because he has "materials left over from another job," is likely a scammer.
• Those who accept only cash payments. These are likely the folks who will take your money, never drive a nail and never be seen or heard from again.
• No known business address or telephone number listed in the phone book.
• A contractor that asks you to pull permits, although sometimes it is easier and less costly for a homeowner to do this, so use judgment here.
• Offers you a special price, saying your home will be the "demo." When hiring a contractor you want to see past work, not be it.
• Asking for full payment up front. This is a huge red flag. Avoid a contractor who requires this. A deposit is more than reasonable, but paying for work before it's done is not.
A contractor who offers to help with the financing by suggesting a lender "they know" could be involved in a home improvement scam. Be careful. Read all paperwork with extreme prejudice. The fine print could actually have you signing over your house to the contractor.
Most contractors are consummate professionals who pride themselves in quality work, but unfortunately there are those out there who pray on people who don't know what they're doing. If an offer seems fishy or just too good to be true, be very cautious. The investment is in your home, which means your future as well.
Good Contractors Take The Worries Away
There's no doubt that building a house or having a large renovation project undertaken is a big stress on a person. There are money concerns, construction details, permits and subcontractors to worry about. That's not even mentioning the fact that most homeowners simply don't have the skills or know-how to see a big project through from beginning to end.
This is where a good general contractor could step in and make the process go so much smoother. By bringing expertise to the table, a general contractor takes over the planning, scheduling, purchasing and permitting. Through the entire process, a good general contractor oversees the job and makes sure things get done when they're suppose to and how they're supposed to.
Anyone who has gone through a construction process knows how difficult it can be to keep up with all the steps and hoops that have to be handled. This is especially so in the case of permitting and government inspections. Once again, a good building contractor will handle all of these details, taking the worry and stress off the homeowner. A simple dispute, if handled poorly, can escalate into the contractor walking off the job or worse, so proceed smartly and be fair. Handling disputes with contracts requires common sense.
Good building contractors will do the following things for a homeowner during a construction project. Of course, there may be more, but these are the basics:
• Ensure that plans for the construction project are accurate and workable. This can even mean working with an architect or designer to make sure what the homeowner wants is what he or she gets.
• Permitting. General contractors should understand the ropes of local government permitting offices and they generally will handle the entire process on behalf of their clients. This is good news for homeowners who don't want to deal with government red tape or don't know how to.
• Scheduling. A good general contractor will ensure that all steps of the construction phase take place when they should and how they should.
• General supervision. Building contractors worth their weight will inspect jobs personally along the way, making sure that all trades involved do their parts up to par.
• Communication. Smart contractors communicate with clients every step of the way. They will explain the process and give regular reports on progress.
Most homeowners can pull permits for personal construction projects and even make attempts to hire the subcontractors necessary to get the job done. Unfortunately, most people simply do not have the time or the know-how to properly supervise a big job. That's where a general contractor comes in and can really save the day.
Responsibilities Of A Contractor
If you're building a home or planning to have an addition constructed, hiring a general building contractor is a good way to go. These professionals can take all the burden of construction details off the homeowner and handle the process from start to finish.
But for the uninitiated, it's often difficult to tell what exactly is a contractor's job and what a homeowner can expect to do. Making sure this unknown quantity becomes known clearly to both parities before a job starts, makes good common sense.
No matter how much you know about home improvement and repair, there are some jobs that simply require the use of a knowledgeable contractor. When it comes to electricity, this is absolutely one of those jobs unless you have expertise in the trade, for example electric work.
With a general contractor, an agreement can be set up whereby the entire job from hiring an architect to final inspection are handled by the contractor. In other cases, the homeowner will be more actively involved. A lot of this will depending on the contract itself and what both parties prefer.
In general, if you're building a home and a general contractor or homebuilding company has been hired, you can expect to need only sign on the dotted light and take care of the financing. From there on out, the jobsite belongs to the contractor and your simply an observer with a strong voice.
After an agreement's made, the contractor will begin the process of building the home if set design plans are already in place. This means he or she will handle land preparation, permits, clearing and foundation construction.
Once the house starts to go up, the contractor will continue to handle the job, hiring or calling in preset subcontractors as the process moves along. Many homebuilding companies have a number of subs from each trade they use as needed, so figuring out which plumber is the best, for example, falls on their shoulders, not yours.
The reasons for wanting a general contractor or a homebuilding company are many. But the real advantage is their understanding of the entire process and when different types of subcontractors needed to be called in. A home contractor, for example, will know the roof and windows need to be in place before the drywall crew is called in. And they'll know the drywall must be done before the painters can get to work and so on.
Building a home, doing a major renovation or even adding a room on to a house are all big projects. Making sure the job is done right can be a nightmare for a lay person. That's where a trusted contractor comes into play.
Governments and big corporations do it all the time. In fact, it's often part of written policy. Getting at least three quotes before choosing a building contractor to handle a job is smart for a number of reasons.
Whether you're adding on to your home or you want a big remodeling job done or even just need a new shower installed, getting quotes from contractors and checking out the different companies in the process just makes sense.
Think of your home as the center of your business and this concept begins to make a lot of sense. In essence, your home is in fact a business. The business is living. If your home isn't treated right, your family won't have a good surrounding for all the things that go into family life.
So, before you rush head-long into a construction job, picking the first contractor you find, here are some tips on what to ask for:
• Make sure you get at least three quotes from different contractors.
• While the quotes are in process, check into the different companies. Make sure their licensing and insurance are in order. A building contractor license is important factor.
• Check into their backgrounds and speak to past customers if possible. Also check with the Better Business Bureau to make sure no major complaints have been filed against any of the companies you're looking at.
• Once the quotes are in, read them over carefully. A good written estimate should include a basic materials list, costs for them as well as labor. An extensive quote will also include a listing of what can be expected, i.e., a detailed outline of the job's phases and materials.
After you have reviewed the quotes and checked the companies out, take your time to make a final decision. Any job on your home that's big requires some careful consideration. You don't have to choose a contractor on Day One of deciding to do the job.
Remember while the lowest bid might be the best one financially, if the contractor doesn't check out on all other points, it's not the best bid. Compare pricing estimates and other factors before choosing.
No matter the size of the job, a construction project on your home is a big deal. The finished work is meant to make your home nicer, bigger or more livable. Treat every step of the process with care and take a tip from government and other businesses by checking everything out before moving forward.
Avoiding Bad Contractors
Making the decision to build a house, add on to an existing one, remodel a room or have a repair job done can be a huge one. The investment is not only in a piece of property, it's also the structure your family calls home.
It's very important to hire only the best when it comes to contractors. Knowing you need to hire the best contractor for the job and actually finding that person can be two very different things though.
While most contractors are reputable and will do their best to complete the job within budget, on time and with quality results, it's a simple fact that not all contractors are good contractors. With this in mind, it's a good idea to know what to watch out for when it comes to scammers or even inexperienced professionals. Having a plan pays well when hiring a contractor.
In general, the following things are red flags:
• Those who solicit door-to-door. A good contracting company won't need to do this to drum up business.
• Discount offers that seem to good to be true. For example, if a "contractor" knocks on the door and offers to fix your damaged roof for a great rate because he has "materials left over from another job," is likely a scammer.
• Those who accept only cash payments. These are likely the folks who will take your money, never drive a nail and never be seen or heard from again.
• No known business address or telephone number listed in the phone book.
• A contractor that asks you to pull permits, although sometimes it is easier and less costly for a homeowner to do this, so use judgment here.
• Offers you a special price, saying your home will be the "demo." When hiring a contractor you want to see past work, not be it.
• Asking for full payment up front. This is a huge red flag. Avoid a contractor who requires this. A deposit is more than reasonable, but paying for work before it's done is not.
A contractor who offers to help with the financing by suggesting a lender "they know" could be involved in a home improvement scam. Be careful. Read all paperwork with extreme prejudice. The fine print could actually have you signing over your house to the contractor.
Most contractors are consummate professionals who pride themselves in quality work, but unfortunately there are those out there who pray on people who don't know what they're doing. If an offer seems fishy or just too good to be true, be very cautious. The investment is in your home, which means your future as well.
Good Contractors Take The Worries Away
There's no doubt that building a house or having a large renovation project undertaken is a big stress on a person. There are money concerns, construction details, permits and subcontractors to worry about. That's not even mentioning the fact that most homeowners simply don't have the skills or know-how to see a big project through from beginning to end.
This is where a good general contractor could step in and make the process go so much smoother. By bringing expertise to the table, a general contractor takes over the planning, scheduling, purchasing and permitting. Through the entire process, a good general contractor oversees the job and makes sure things get done when they're suppose to and how they're supposed to.
Anyone who has gone through a construction process knows how difficult it can be to keep up with all the steps and hoops that have to be handled. This is especially so in the case of permitting and government inspections. Once again, a good building contractor will handle all of these details, taking the worry and stress off the homeowner. A simple dispute, if handled poorly, can escalate into the contractor walking off the job or worse, so proceed smartly and be fair. Handling disputes with contracts requires common sense.
Good building contractors will do the following things for a homeowner during a construction project. Of course, there may be more, but these are the basics:
• Ensure that plans for the construction project are accurate and workable. This can even mean working with an architect or designer to make sure what the homeowner wants is what he or she gets.
• Permitting. General contractors should understand the ropes of local government permitting offices and they generally will handle the entire process on behalf of their clients. This is good news for homeowners who don't want to deal with government red tape or don't know how to.
• Scheduling. A good general contractor will ensure that all steps of the construction phase take place when they should and how they should.
• General supervision. Building contractors worth their weight will inspect jobs personally along the way, making sure that all trades involved do their parts up to par.
• Communication. Smart contractors communicate with clients every step of the way. They will explain the process and give regular reports on progress.
Most homeowners can pull permits for personal construction projects and even make attempts to hire the subcontractors necessary to get the job done. Unfortunately, most people simply do not have the time or the know-how to properly supervise a big job. That's where a general contractor comes in and can really save the day.
Responsibilities Of A Contractor
If you're building a home or planning to have an addition constructed, hiring a general building contractor is a good way to go. These professionals can take all the burden of construction details off the homeowner and handle the process from start to finish.
But for the uninitiated, it's often difficult to tell what exactly is a contractor's job and what a homeowner can expect to do. Making sure this unknown quantity becomes known clearly to both parities before a job starts, makes good common sense.
No matter how much you know about home improvement and repair, there are some jobs that simply require the use of a knowledgeable contractor. When it comes to electricity, this is absolutely one of those jobs unless you have expertise in the trade, for example electric work.
With a general contractor, an agreement can be set up whereby the entire job from hiring an architect to final inspection are handled by the contractor. In other cases, the homeowner will be more actively involved. A lot of this will depending on the contract itself and what both parties prefer.
In general, if you're building a home and a general contractor or homebuilding company has been hired, you can expect to need only sign on the dotted light and take care of the financing. From there on out, the jobsite belongs to the contractor and your simply an observer with a strong voice.
After an agreement's made, the contractor will begin the process of building the home if set design plans are already in place. This means he or she will handle land preparation, permits, clearing and foundation construction.
Once the house starts to go up, the contractor will continue to handle the job, hiring or calling in preset subcontractors as the process moves along. Many homebuilding companies have a number of subs from each trade they use as needed, so figuring out which plumber is the best, for example, falls on their shoulders, not yours.
The reasons for wanting a general contractor or a homebuilding company are many. But the real advantage is their understanding of the entire process and when different types of subcontractors needed to be called in. A home contractor, for example, will know the roof and windows need to be in place before the drywall crew is called in. And they'll know the drywall must be done before the painters can get to work and so on.
Building a home, doing a major renovation or even adding a room on to a house are all big projects. Making sure the job is done right can be a nightmare for a lay person. That's where a trusted contractor comes into play.
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