If you are thinking of buying a Pag-IBIG foreclosed property through an “accredited real estate agent”, think again! This might happen to you.
Video from the GMA News Youtube Channel
What happened?
Here’s a summary of what happened based on the video.
- Arrest of a Fake Agent: A woman, referred to as “Martha,” was arrested for posing as a Pag-IBIG agent and selling properties that were already owned and fully paid for by other individuals.
- Victim and Financial Loss: The victim, a former OFW named “Sylvia,” lost approximately 1.5 million pesos after paying for 18 houses she believed were foreclosed properties.
- Deceptive Tactics: The suspect gained trust because she was a long-time neighbor of the victim and used forged Pag-IBIG documents and signatures to facilitate the scams.
- Targeting “Abandoned” Properties: The suspect sold houses that appeared abandoned—often investments by other OFWs who were currently abroad.
- Physical Renovations: In one instance, the victim spent her own money to renovate a house she believed she had purchased, only to discover later that the property did not belong to her.
- Entrapment Operation: The PNP-CIDG conducted a sting operation inside the Pag-IBIG Office in Davao City, where the suspect was caught accepting marked money while processing fraudulent documents.
- Legal Consequences: The suspect is facing charges for estafa, usurpation of authority, and violations of the Anti-Red Tape Act.
- Authorities’ Advice: Property buyers, especially OFWs, are urged to verify the identity of the true owners and check official government social media pages and offices to ensure transactions are legitimate. (I have more suggestions on how to avoid getting scammed, see my thoughts below ~ Jay Castillo)
A summary of the comments from the video in YouTube
Here is a summary of all the comments. They all make sense which is why I included them below:
- Suspicions of an “Inside Job”: A significant number of commenters believe the suspect could not have operated alone, especially since she conducted transactions inside the Pag-IBIG office and near the security guards. They argue she likely had accomplices within the agency to identify “abandoned” properties.
- Criticism and Victim Blaming: Several users pointed out that Pag-IBIG frequently warns the public that they do not employ outside agents. Some commenters blamed the victim for being “too trusting” or “lazy” to do proper research before investing 1.5 million pesos.
- Concerns for Property Owners: Commenters expressed alarm over how easily scammers can target “abandoned” homes belonging to OFWs. One user even joked about the irony of a legitimate owner returning to find their house had been renovated for free by a scam victim.
- Calls for Harsher Punishment: There were multiple calls for the suspect to be jailed immediately, with some expressing frustration that scammers are often able to post bail and repeat their crimes.
- Personal Scams Shared: At least one commenter shared a personal experience where they purchased subdivided land that was later sold again by the original owner to a different buyer, illustrating the broader issue of real estate fraud in the Philippines.
My thoughts
1. I’ve been wondering why Pag-IBIG has been posting many reminders about NOT having accredited real estate brokers/agents on their website – Now I understand.
They want the general public to be aware that scammers are actively targeting would-be buyers of Pag-IBIG foreclosed properties.
Here’s a copy of their reminder for your reference:
2. I believe the public has to learn to be “NOT TOO TRUSTING” and follow the process – Just because someone is your “long-time” neighbor, it does not mean you will not conduct proper due diligence.
You still need to check with the following:
- Pag-IBIG – to check the authenticity of documents and the agent’s accreditation
- The LRA – to check the titles and see who are the registered owners
- The Local Government Unit or LGU where the property is located – to check the tax declarations and see who are the legitimate owners.
For more things to check as part of due diligence, read this: 31 “Must Ask” Questions before you buy a foreclosed property
3. Through the online public auction platform, buyers will have to transact with Pag-IBIG directly and avoid fake agents – This is one huge advantage of having an online public auction platform (includes negotiated sale).
Since submitting bids/offers must be done directly on Pag-IBIG’s website, you won’t have to risk dealing with fake real estate agents.
Here’s a direct link to Pag-IBIG’s Online Public Auction Platform: https://www.pagibigfundservices.com/OnlinePublicAuction/
4. I’ve said it before and I’ll say it again, Pag-IBIG no longer allows accredited licensed real estate brokers to sell their foreclosed properties – This was announced on their official website last September 30, 2019.
Details are explained here: Real Estate Brokers/Salesperson are not allowed to sell Pag-IBIG properties
5. Never give money to real estate agents! – Based on the video, the fake agent most probably received cash from the buyer. Don’t ever do this! Here’s what you should do instead:
- Issue checks to the seller (in this case, HDFM or Pag-IBIG) and monitor if your payments are duly credited and your funds actually reached the seller.
- If you are paying in cash, do this directly at the Pag-IBIG office (done at the cashier – you can only do this if your transaction is legit).
Just imagine if the buyer issued checks to Pag-IBIG or paid in cash directly at the cashier at Pag-IBIG’s office from the very start, then she would have learned immediately that the transaction was NOT legit.
It’s either the checks would never get deposited (and your funds will not get debited) or the cashier would not accept the payment because the transaction does not exist.
Anyway, I discuss these in detail here: Why You Should Never Give Cash To Real Estate Agents (And What To Do Instead):
Got something to add? Let me know by leaving a comment below.
