Regarding refund of Full DP and my loan application

rea17 wrote:I bought a house and lot property in valenzuela, paid the full downpayment (spot cash) and the developer said they will construct the house once I have a bank approval for my loan thru bank financing. I already have 2 approved loan at RCBC and BDO but there was a problem, first BDO declined the property because they don't like the location because its flooded area. Then RCBC wanted the developer to transfer the title to my name first before they give me the 80% loan. But the developer didnt agree so what i did is applied at metrobank which is accredited by the developer. The metrobank said that I have a high salary and a hood company (venetian macau) but they have to declined my application because of my position which is entertainer. (Im an OFW in macau since 2008)
Now, im planning to just refund my money since because the developer is asking too much for in house financing. (16% interest, 42,572k monthly 7yrs to pay)

My questions are:

1. If i opted to refund my full downpayment (472k spotcash) how many percent should i get base on the maceda law?

Here is what the Maceda law says;

Under the Maceda Law, there are two qualification categories of buyers accorded protection. These buyers are:

1. Under Section 3 of Maceda Law, a buyer with at least 2 years of installments
2. Under Section 4 of Maceda Law, a buyer with less than 2 years of installments

Section 3

“…where the buyer has paid at least two years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:

a.) To pay, without additional interest, the unpaid installment due within the total grace period earned by him, which is hereby fixed at the rate of one month grace period for every one year of installment payments made; provided that this right shall be exercised by the buyer only once in every five years of the life of the contract and its extensions, if any.

b.) If the contract is cancelled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty percent of the total payments made… Down payments, deposits or options on the contract shall be included in the computation of the total number of installment payments made”

Section 4
“In case where less than two years of installments were paid, the seller shall give the buyer a grace period of not less than sixty days from the date the installment became due.

If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after 30 days from the receipt by the buyer the notice of cancellation of the demand for rescission of the contract by a notarial act.”

In other words, Section 3 of Maceda Law indicates that the buyer has a right to a refund and grace periods as long as the buyer has paid at least two years. However, if there’s still less than 2 years of installment payments made, the buyer is only entitled to 60 days grace period as indicated in Section 4.

More importantly, there is a section in the Maceda Law that protects the buyers from the fine prints of contracts imposed by the contractors or developers. These fines prints are oftentimes neglected by the buyers to review during the contract signing.

Section 7 of the Maceda Law states that “Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3,4,5, and 6 shall be null and void.”

Please read your contract to sell carefully what are the stipulation/s in case you opted to back out of the deal.

2. Is it legal to be declined by the bank because of my job position even if my salary and company is qualified? Its very discriminating. I asked BDO about my case, they said as long as im employed (regardless what position) and I provided all the documents that they needed and my salary is qualified, there's no reason to get a loan.  

It is not about legality why banks or any lending institutions decline to extend loan/s to applicants. It is within their  prerogative whether to approve  or not and you cannot question them what is their reason in declining to extend loan/s.

3. Is it legal for the developer to ask that much for in house financing? 16 % interest 7 years to pay and 42,572 pesos monthly

Developers are guided by the prevailing interest rates allowed by law. They cannot charged interest rates more than what the law allows or else they will be charged usury. Please read your contract to sell carefully and digest word for word or you may avail the services of a lawyer to be enlighten.

Please help me. Hoping for your immediate reply. Thank you very much! God bless! [/i]

isellnuts wrote:Developers are guided by the prevailing interest rates allowed by law. They cannot charged interest rates more than what the law allows or else they will be charged usury. Please read your contract to sell carefully and digest word for word or you may avail the services of a lawyer to be enlighten.