I was recently invited to be a principal sponsor to the wedding of the son of one of my long-time friends. As the wedding will be held during this time of quarantine lockdowns and health protocols, I was informed that it will be an online wedding and that further details about the attendance of the principal sponsors will be relayed to me soon. As we discussed the couple’s plans for their future—including where they will be settling down—she mentioned that they have been discussing about purchasing a foreclosed home instead as they save up for their ultimate dream home.
The couple later asked me about the possibility of buying foreclosed Social Security System properties. But before I answered, I asked them why they preferred a foreclosed property as their starter home over a rented, pre-sale, or ready-to-occupy unit or property. The couple said they did some preliminary research and discovered SSS foreclosed properties that are up for sale. I also asked if they have properly weighed the pros and cons of their choice, because foreclosed properties sold by SSS are generally just the basic structure or set-up with no improvements or repairs made. The downside is that if they find anything that needs replacement, they will have to shoulder the cost of repairs or renovation. The advantage, however, is they can move in as soon as the sale is finalized, and that such properties are typically cheaper than the new ones’ being sold in the market.
Many members are unaware that SSS manages foreclosed properties. These are properties mortgaged to the SSS but were foreclosed because the owner failed to meet the contract obligations.
Interested buyers must inspect the property first before submitting their application because these are sold on an “as is, where is” basis. Once you have selected the property you wish to purchase, submit the duly accomplished application form with supporting documents and down payment to the Housing and Acquired Assets Management Section (HAAMS) for evaluation.
If HAAMS finds the buyer qualified, a proposal to purchase will be prepared for approval of the authorized authority from SSS and subject to the confirmation of the Social Security Commission. The contract covering the sale will also be forwarded to the Office of the Government Corporate Counsel (OGCC) for approval.
Once approved by the OGCC, the buyer must execute a Deed of Conditional Sale if payment is on instalment, or a Deed of Absolute Sale for cash sale. If the buyer opts to pay on instalment, 12 post-dated cheques covering the first year of amortization should be submitted. As part of the requirement for purchasing an SSS acquired property, the buyer must pay the corresponding down payment equivalent to 5 percent of the selling price if the selling price is P500,000 and below, or 10 percent if the selling price is above P500,000. For cash purchases, the balance of the selling price must be settled in full within 30 days upon receipt of the notice of approval of sale.
Other qualifying conditions include: The buyer must be a Filipino citizen of legal age, a person authorized by law to acquire, own, or hold properties in the Philippines, may be self-employed, informal sector worker, or OFW, and may be an SSS member or non-member. These properties may also be purchased by the former owner or successor-in-interest, such as the legal spouse, children, and parents, who currently reside in the property being sold. They must also submit documents such as two valid government-issued IDs with photo and signature, copy of Birth Certificate and, if married, a copy of Marriage Certificate issued by the Philippine Statistics Authority, proof of residence such as recent billing statement, barangay certificate issued in the last six months.
For employed buyers, they must also present a Certificate of Employment with Compensation, latest two-month pay slips, and the latest Income Tax Return. Self-employed buyers must also provide as Affidavit of Income or latest ITR, DTI Registration, and Business Permit. For OFWs, the documents they need to present will include Job Contract or Certificate of Employment, latest two-month pay slips, Special Power of Attorney, and proof of remittance.
As of March 2021, there are around 75 foreclosed properties available for sale all over the Philippines. Nine properties are located in the National Capital Region and Rizal, seven in Central Luzon, six in Southern Luzon, two in Central Visayas, 50 in Southern Mindanao, and one in Western Mindanao.
The list of available SSS properties for sale are regularly posted at the SSS web site (www.sss.gov.ph). For further details, interested buyers may send an e-mail to the HAAMS Department at haamd@sss.gov.ph or any of the respective HAAMS Section Service Office to inquire about the available acquired assets for sale. In addition, regional HAAMS are located in SSS offices in SSS Tarlac, SSS San Pablo, SSS Cebu, SSS Davao, and SSS Zamboanga.
Have a happy workweek ahead!
Aurora C. Ignacio is SSS president and chief executive officer.
We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss.gov.ph for topics that you might want us to discuss.