Developer demand us to pay monthly amortization

Hello po. We purchase a house and lot last Dec. 2014 worth 1.2M. Before we pay the downpayment, we informed the Developer and broker that we're going to loan the remaing amount sa Pag-ibig. They assure us that we can and they will be the one to process it. We pay the downpayment in full and asked them were going to pay the remaining equity in 6mos without interest. March 2015, we already provided them the papers or requirements for Pag-ibig since my husband was around. We paid the equity last June 2015. They informed us that we need to pay monthly amortization since we didn't know the loanable amount that Pag-ibig will grant. They demand us to pay 18k/mos. I told them we cannot pay that amount since if ever Pag-ibig grant our loan we're just paying around 13k or 14k per mos. or lower. They will just refund the amount if ever the loan is higher than the remaining balance that we have. The manager informed me that they will just accept the amount that we can pay. Until now the application to Pag-ibig is not yet processed. The title is not yet transferred. We asked for the ledger. We were shocked that we still have 1.045M balance and the equity is around 300k + we pay from july-apr. They get the interest from the equity we pay.

Ano po ba ang dapat? After we pay the equity, do we need to pay the amortization with 18% interest? Or Is it their fault na hindi nila na process yung application namin?

There are instances that the Developer will call us and demand to pay the interest or will contact their atty to forfeit the house. our neighbor also received the same call.

Since it's more than a year that they had not processed the application. We tried to process the loan thru bank. It's been approved this May 2016. We already send the guarantee letter to the Developer. They informed us that we still need to pay until Oct. Same issue with my neighbor. Their loan has been approved by the bank but the Developer cannot provide the title. The guarantee letter have been expired.

I tried to check the title at Registry of Deeds. They cannot provide the Certificate of True Copy because they are still printing it. The title is reconveyance. I'm not sure if the name was still under the Developer or if it transferred to us.

Do we still need to pay for the amortization until Oct? Is it correct? They cannot provide me the contract since it is not yet notarized.

We need advise on what we can do.

Thank you in advance.

Hello po,

I presume that you've moved in already?  If you've moved in already, you may have been placed temporarily to In-House Financing, the interest of which is usually pegged at 18%, especially if the loan is not yet processed at the bank or Pag-IBIG.  This usually happens if the loan isn't with the bank yet, and you'd like to use the house already.  

And if you signed a Contract to Sell, the provisions are there.  You are bound to its provisions even if it's not notarized yet.  So kindly check the CTS.  

Is the title the only thing that is needed?

Yup, we already moved in as per their advise that if we pay the full equity.

They will not give me the CTS since they said that we will signed a different contract. The title is already printed at ROD. The bank also provided the guarantee letter this May. But they informed me that we will continue to pay until October. I presumed that the title is not yet transferred to us?

And they did not processed our papers at Pag-ibig that's why we opted at Bank financing.

"They cannot provide me the contract since it is not yet notarized. "
The contract since 2014?
If so, the Developer is a scamer.

And it seem them are scamer anyway, because of they haven't send the application to Pag-Ibig...
OR isn't the building fully ready yet? If so, I suppouse Pag-Ibig wouldn't aprove the loan yet.

What does the by you signed contract say about loans and delays?

The bank won't pay them unless the title is transferred in your name. In the meantime, get more information, ask to read the CTS. Ask the developer if the taxes have been paid and the CAR has been issued.

Yes, I'm checking the CTS, the taxes has been paid.

Maybe the same will happen to me as my neighbor. Their guarantee letter has expired since the Developer cannot provide the title.

Thanks for the advice.

LiAngelo wrote: Maybe the same will happen to me as my neighbor. Their guarantee letter has expired since the Developer cannot provide the title.

A main qiestion is WHY the developer can't that. What do they say?
And what does the contract say about when it would be ready?

Hello po!

I purchase a house and lot last Feb 2014 worth 1.2M in Bulacan. I payed the DP in full because they told me that I can move in 3rd qtr of 2015. Before I pay the downpayment, I informed the Developer that I'm going to loan the remaining amount to Pag-ibig. They will process it as part of the processing fee amounting Php 124,912. 3rd qtr of 2015, hindi pa nila nagagawa yung house, so sabi nila 3rd or 4th qtr daw ng 2016 pwede na magmove in. Feb 2016, nagprovide na ko ng mga requirements for Pag-ibig, uunahin daw kasi nila yung mga bayad na sa equity. April 2016, sabi nila need ko daw magdeposit kay developer ng Php 10,341.85 monthly para sa amortization hangga't hndi pa approved yung loan ko kay Pag-ibig. Para lang daw ako nag-iipon in case na hindi maapprove yung loanable amount ko. If ever daw na 1.2M yung ma-loan, ibabalik daw yung mga hinulog ko. so nagde-deposit ako sa knila from April 2016-October 2016. May SOA namn sila na ineemail sa akin so alam ko na nababawas nmn sya sa principal. Pero last Nov 2016, may interest sila na nilagay. Yung Php 10,341.85 Php 3,400 lang nababawas sa principal and yung 6k interest na mapupunta ka developer. Tinanong ko kung bakit may interest na 6k, ang sabi sa akin kasi daw gawa na yung house. Hindi pa ko makakamove-in kasi wala pa kuryente at tubig. magsstop lang daw yung hulog ko at interest pag ok na yung Pag-ibig loan ko. I called Pag-ibig kung naprocess na ba, wala pa daw. According kay developer, March pa daw nila ipprocess kasi by batch daw yun.

Tama po ba yun? Need ko ba talaga magbayad ng amortization sa kanila with interest kahit hindi pa ko naka-move in? Di po ba fault nila yun?
1. Hindi nila tinupad yung sinabi nila na move-in date
2. Feb 2016 pa ko nagbigay ng requirements pero until now hindi pa nila pnprocess
3. hindi pa nila naasikaso yung tubig at kuryente

Thanks!

Hello, what does the contract say?

Did you send them any letter or was any letter sent to you regarding the amortization?

Kindly compile all documents, including letters you may have sent to them. Also, please read and re-read the Contract to Sell, as it may have provisions regarding the in-house rate while awaiting approval from Pag-IBIG.

You may ask for help from the HLURB, detailing all your complaints. Good luck.

jcfrancisco wrote:Hello po!

I purchase a house and lot last Feb 2014 worth 1.2M in Bulacan. I payed the DP in full because they told me that I can move in 3rd qtr of 2015. Before I pay the downpayment, I informed the Developer that I'm going to loan the remaining amount to Pag-ibig. They will process it as part of the processing fee amounting Php 124,912. 3rd qtr of 2015, hindi pa nila nagagawa yung house, so sabi nila 3rd or 4th qtr daw ng 2016 pwede na magmove in. Feb 2016, nagprovide na ko ng mga requirements for Pag-ibig, uunahin daw kasi nila yung mga bayad na sa equity. April 2016, sabi nila need ko daw magdeposit kay developer ng Php 10,341.85 monthly para sa amortization hangga't hndi pa approved yung loan ko kay Pag-ibig. Para lang daw ako nag-iipon in case na hindi maapprove yung loanable amount ko. If ever daw na 1.2M yung ma-loan, ibabalik daw yung mga hinulog ko. so nagde-deposit ako sa knila from April 2016-October 2016. May SOA namn sila na ineemail sa akin so alam ko na nababawas nmn sya sa principal. Pero last Nov 2016, may interest sila na nilagay. Yung Php 10,341.85 Php 3,400 lang nababawas sa principal and yung 6k interest na mapupunta ka developer. Tinanong ko kung bakit may interest na 6k, ang sabi sa akin kasi daw gawa na yung house. Hindi pa ko makakamove-in kasi wala pa kuryente at tubig. magsstop lang daw yung hulog ko at interest pag ok na yung Pag-ibig loan ko. I called Pag-ibig kung naprocess na ba, wala pa daw. According kay developer, March pa daw nila ipprocess kasi by batch daw yun.

Tama po ba yun? Need ko ba talaga magbayad ng amortization sa kanila with interest kahit hindi pa ko naka-move in? Di po ba fault nila yun?
1. Hindi nila tinupad yung sinabi nila na move-in date
2. Feb 2016 pa ko nagbigay ng requirements pero until now hindi pa nila pnprocess
3. hindi pa nila naasikaso yung tubig at kuryente

Thanks!