As an offshoot of Republic Act 9507 or the Socialized and Low-Cost Housing Loan Restructuring Act of 2008, the GSIS is implementing the Housing Loan Restructuring and Condonation Program, which covers housing loan obligations of delinquent borrowers with accumulated arrearages equivalent to at least six monthly amortizations, regardless of the original principal amount of the loan.

The Housing Loan Restructuring and Condonation Program was implemented on April 16, 2009 and will run until June 30, 2011.

The amount of restructuring shall be the sum of the outstanding loan principal, accrued interests, insurance premiums, taxes, foreclosure and other incidental expenses, less downpayment and discount on accrued interest, if any.

The restructured balance shall be imposed an interest rate of eight percent per annum compounded annually, fixed throughout the loan term.

The maximum term of the restructured obligation shall be 30 years, but should not exceed the difference between the borrower’s age at the time of application and number 80.

There will be no processing fee or downpayment requirement for this program. Moreover, discount on unpaid interest shall be given to borrowers who will pay, partially or in full, their outstanding balances with the GSIS. A payment of 25-49 percent of the outstanding balance is entitled to a 10 percent discount; 50-74 percent payment, 20-percent discount; 75-99 percent, 30-percent discount; and 100 percent, 40-percent discount.

Who are eligible to apply for the Housing Loan Restructuring and Condonation Program?

Those covered by the program include:

- borrowers/installment buyers of covered accounts notwithstanding that the same borrowers/installment buyers have availed themselves of the benefits of a previous condonation and loan restructuring program

- the legal heirs of deceased borrowers/installment buyers with unpaid loan balances after application of the proceeds of the Housing Loan Redemption Insurance, if any

- successors-in-interest of housing loan borrowers, who have assumed the original mortgage or of installment buyers who are assignees of Deed of Conditional Sale, as supported by legal documents, including Special Power of Attorney, duly approved by or with consent of GSIS.

Who are NOT eligible to apply for the Housing Loan Restructuring and Condonation Program?

Those not covered include:

- any account without a single payment since the effectivity of deed of conditional sale, deed of real estate loan mortgage, and/or restructuring agreement

- an account under a contract-to-sell that has been cancelled

- an account that has been foreclosed and the redemption period has already lapsed

- an account involving a housing unit has been abandoned by the borrower-owner for more than one year from the date of delinquency

- an account involving a housing unit is occupied by a third party other than the original registered beneficiary or his/her legal heirs/successor-in-interest

- an account that has been surrendered to GSIS through a dacion en pago (payment in kind) the title of which has already been consolidated/transferred in the name of GSIS.

How can members apply for the Housing Loan Restructuring and Condonation Program?

To apply, interested members just need to get an application form from the Housing and Insurance Group of the home office or from an HI Unit staff in other servicing offices. The list of documentary requirements the applicant needs to submit are indicated in the application form.

After the completion of all the requirements, the applicant needs to submit these along with the accomplished application form to the HIG or HIU (branches) for evaluation.