Home » Real Estate Investing » Pasalo (Assume Balance): Sell a house and lot via Mortgage Assumption (overview)

Pasalo (Assume Balance): Sell a house and lot via Mortgage Assumption (overview)

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.

Subscribe to get notified when I upload more videos about real estate investing/foreclosed properties in the Philippines. Click on the following link to subscribe:
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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

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About Jay Castillo
People encounter problems and make mistakes when buying foreclosed properties, and Jay wants to help people avoid those problems/ mistakes. Jay encountered a lot of those, which is why he started this blog in 2008 to serve as a guide where he shares lessons learned, and how to overcome challenges you may encounter when investing foreclosed properties in the Philippines … [Read more]
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2 thoughts on “Pasalo (Assume Balance): Sell a house and lot via Mortgage Assumption (overview)”

  1. 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?

    Reply
    • 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.

      Reply

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