Here’s an overview of “Pasalo” (assume balance) house and lot process. I was asked what’s the process to sell a house and lot via “assume balance” during an FB live hosted by Boost Gio. I gave an overview w/ an example where I sold our house (with Pag-IBIG housing loan).
This is applicable to properties with existing mortgage loans (Ex.Pag-IBIG housing loans). It would be a different process for properties under a contract-to-sell (CTS), I’ll discuss selling properties under a CTS (ex. foreclosed properties from Unionbank, RCBC, etc) in another video.
There’s also a different process for transfer of rights (ex. preselling na condo, etc.)
This video was recorded way back in November 29, 2018, I’m glad I found a recording. 🙂
I edited this to add notes on the screen for more clarity.
This is just one of many videos where I was invited to share experiences and lessons learned about investing in real estate/foreclosed properties in the Philippines.
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Timestamps
0:00 Intro
0:12 Option 1: Deed of Sale w/ Assumption of Mortgage
0:30 Option 2: Take over mortgage payments w/ “internal agreement”
0:49 Foreclosure risk with mortgage assumption
1:04 Assume balance Pag-IBIG housing loan example
1:33 Original borrower must be proactive
1:41 Disadvantages for the buyer
Hello Sir Jay,
I’m planning to sell my property under mortgage via seller/owner financing.
I plan to issue CTS to the buyer and they will have to pay monthly to me for 15-30 years. There is no transfer of ownership yet until they fully paid the installment. Do I neee to inform the bank on this? Or any issue with this type of property selling?
Hi Jane, my suggestion is to consult with the bank if anything like this will cause any complications if you do decide to sell the property with a CTS. I have done both (for some properties I informed the bank, and for others I did not) and I felt better when I informed them. Technically speaking, there shouldn’t be a problem as long as your CTS does not contradict any existing stipulations with your existing mortgage.