What Will Happen If I Am Delinquent on My Housing Loan Payments?

1. What is the "Realty Installment Buyer Protection Act"?

💖The "Realty Installment Buyer Protection Act," also known as Republic Act No. 6552 (MACEDA LAW), is a law designed to protect buyers of real estate who pay in installments. It ensures buyers are treated fairly and provides specific rights if they default on payments.

CHLP Realty: Understanding the Consequences of Delinquent Housing Loan Payments.

2. What rights do I have if I have paid at least two years of installments and default on my payments?

✅If you have paid at least two years of installments, you have the right to:

💖Pay the unpaid installments without additional interest within a grace period equivalent to one year of installment payments made. This right can be exercised once every five years.

💖Receive a refund of the cash surrender value equivalent to 50% of the total payments made if the contract is canceled. This refund increases by 5% per year after five years of installments, up to a maximum of 90%.

CHLP Realty Explains: The Impact of Missing Housing Loan Payments.

3. What happens if I have paid less than two years of installments and default on my payments?

💖If you have paid less than two years of installments, the seller must provide a grace period of at least 60 days from the due date of the installment. If you fail to pay within this grace period, the seller can cancel the contract 30 days after sending you a notice of cancellation or demand for rescission by notarial act.

CHLP Realty: Consequences of Delinquent Housing Loan Payments Explained.

4. Can I sell or transfer my rights under the installment contract to another person?

💖Yes, you have the right to sell or assign your rights under the installment contract to another person. This must be done by notarial act and can be done during the grace period before the actual cancellation of the contract.

CHLP Realty: How Delinquency on Housing Loans Affects You.

5. Do I have the right to pay off the full balance of the property early?

💖Yes, you have the right to pay any installments or the full unpaid balance of the purchase price at any time without interest. Once you make the full payment, you can have it annotated on the certificate of title covering the property.

CHLP Realty: What Happens When You Miss Housing Loan Payments?

Navigating the complexities of real estate installment payments can be challenging, but understanding your rights under the Realty Installment Buyer Protection Act can provide peace of mind and financial security.

Whether you've paid two years of installments or less, this law ensures that you have specific protections against unfair practices. From the ability to pay off your balance early without additional interest to the right to sell or transfer your contract, these provisions are designed to safeguard your investment and interests.

If you're considering purchasing real estate on an installment basis, make sure you're fully informed about your rights and responsibilities. And remember, whether you're a first-time homebuyer or looking to invest, being well-informed can make all the difference in securing your financial future.