Five things to know about buying an SSS acquired asset |
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Five things to know about buying an SSS acquired asset

by Jillian CariolaPublished: July 20, 2017Updated: July 20, 2017

Think a low-cost acquired asset would be the ideal property for you to buy? Here are some important factors to consider

SSS Acquired Assets Foreclosure Lamudi Affordable Housing Fair MyProperty Philippines

Acquired assets, also called foreclosures, are properties that have been possessed by a lending institution such as a bank when the homeowner fails to keep up with the monthly mortgage payments. Since a foreclosed property is a non-performing asset, the lender will want to sell it as soon as possible, which is why these properties are often offered for a low price.

But don’t jump on the bandwagon until you have learned what you need to know about foreclosures. Like all real estate transactions, it can be complicated and it has risks, but if done right and with full understanding, it should work out well for you. Here are five facts that you need to know when buying an acquired asset.

1. Want the perfect home? Look elsewhere

Acquired assets are sold below market value, and while this sounds like a dream for aspiring homeowners on a budget, it should be noted that these properties are sold “as-is.” This means any and all repair and maintenance work required to bring the property up to grade will be shouldered by the buyer. How tight are your finances? Will you be prepared to financially support the wear and tear of the property?

2. To buy directly or to bid?

Buying a property as soon as a lender acquires it is the easiest route to take. It is also the safest, since you get to inspect the property before making an offer. If you decide to try your luck at an auction, however, you cannot view the property beforehand, so you will have no idea of the extent of damages, if any. The benefit of going to a bidding, though, is that prices start really low, so you have a shot at saving money if you end up winning.

3. Bills, bills, bills

Sometimes, a property’s former owner hits an incredibly rough patch financially, so much so that even the bills go unpaid. If you’re really unlucky, you might be looking at a property where water, electricity, and cable bills, and even homeowners’ association fees have been neglected for months. You will have to add those to the possible costs of repairing the home.

4. Limited time offer

In the game of foreclosures, money talks. Or to be more specific, cash. You need to have the money on hand to buy the property or you risk losing it. As mentioned, lenders are trying to get rid of these properties quickly, so they will not wait around for you to come up with the money. If you cannot produce the down-payment, the property goes back to the market or gets snapped up by somebody else.

5. A business opportunity waiting to happen

Have you ever heard of house flipping? Buying a property on the cheap, giving it a complete overhaul, and selling it for its new increased value. Either that, or they can put it up as a property for lease for a steady stream of income. A business-minded individual entering real estate might look at a fixer-upper and not see a run-down property but a chance to make money, which is why they are willing to take the plunge into foreclosure investing.


If the possibility of purchasing an affordable home and renovating it according to your wants and needs, you are in luck. Various institutions in the Philippines have inventories for you to choose from, either as a direct buyer or a bidder. The Social Security System (SSS), for one, has hundreds of housing acquired assets (HAAs) all over the country, and during the recently held Lamudi Affordable Housing Fair at Glorietta 3 on July 15 and 16, 2017, SSS Junior Specialist Brenda G. Pertis explained the general policies relating to the SSS HAAs, including eligibility of buyers, payment terms, and documentary requirements.

Before going crazy over how affordable they are, be sure that you qualify to make a purchase. Eligible buyers are:

  • Natural or juridical persons who can legally own property in the Philippines
  • Of legal age and able to enter into a contract
  • Not more than 65 years old (if paying in installments)

(Note: SSS employees with rank of Section Head or higher, all those receiving representation and transportation allowance [RATA], and those involved in the administration and their relatives up to the second degree of consanguinity or affinity shall be disqualified from purchasing SSS HAAs.)

When purchasing an SSS HAA, you need to prepare a down-payment equivalent to 5 percent of asking price for properties costing a maximum of Php500,000, or 10 percent of properties cost over Php500,000. For installment sales, interest rates are 6 percent per annum for one to five years, 7.5 percent per annum for five to 10 years, and 9 percent per annum for 11 to 15 years.

Here are the requirements you need to show when buying an SSS HAA:

1. Employed Buyers

  • Certificate of Employment and Compensation
  • Payslip/Income Tax Return (ITR)
  • Two valid IDs with picture

2. Self-Employed Buyers/Informal Sector

  • Income/Business Tax Return and Tax Clearance issued by the Bureau of Internal Revenue (BIR) or Affidavit of Income
  • Two valid IDs with picture

3. Overseas Filipino Workers (OFWs)

  • Certificate of Employment/Employment Contract
  • Payslip or any supporting documents issued by the employer stating monthly income with all the deductions, if any
  • Two valid IDs with picture

Keep the following in mind when buying an SSS HAA as well:

1. HAA selling prices are based on their appraised value as determined by an in-house appraiser, while the required down payment includes foreclosure expenses and backrentals. If the former owner or successor-in-interest would like to repurchase an HAA, the foreclosure expenses will be added to the selling price if the appraised value is lower than the consolidated value.

2. If the property has illegal occupants,

  • The buyer shall be entitled to a discount equivalent to 10 percent of the appraised value.
  • If the ejectment of illegal occupant(s) exceeds three years, the 10 percent discount shall be forfeited.
  • Within three years from execution of the sale, the SSS will refund in full the payments made by the buyers HAA without interest if ejectment is unsuccessful and the buyer is unable to take possession of the property.

3. If the Deed of Conditional Sale (DCS) of the HAA is cancelled or defaulted and the buyer had already made permanent improvements to the property, these improvements will be transferred to the SSS, who will not be obligated to reimburse the buyer for said improvements.

4. The buyer will be responsible for the transfer of the Transfer Certificate of Title (TCT) to his or her name. All taxes and fees involved in transferring the title to the buyer will be paid for by the buyer, except for the Capital Gains Tax (CGT), to which the SSS is exempted as stated in Section 16 of RA 1161.

5. Unsold HAAs priced at least Php1 million will be re-appraised once every 12 months, while HAAs costing less than Php1 million will be subject to re-appraisal once every 24 months.

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