Developers extend leeway for delinquent payments

CEBU, Philippines — Some developers are stretching their hands some more to re-consider delinquent payments from residential property buyers who were not able to continue their monthly amortizations due to the pandemic.

According to Filipino Homes chief executive officer (CEO) Anthony Leuterio, his company, which has offices around the country are now helping some developers to create an “account rescue team” to help those buyers continue their property ownership albeit discontinued payment of acquired properties.

The rescue team, which is now adapted by some developers particularly in Cebu, allows buyers to apply for property recovery program with the developer—re-aligning payment schemes, and other unique buyer-developer agreement. A win-win solution that will be agreed upon by both sides.

 Leuterio said while the sales have gone up in the middle of pandemic, which means that those who have kept their jobs or have savings have realized to invest their money in properties, there are also accounts which are hit and payment of amortization have discontinued.

 In times of difficulties, Leuterio noted that Filipino Homes initiated this system of creating the “account rescue team” to avoid buy-back or refund from the developers’ side and loss of hard-earned investment for the buyers.

Developers who are sensitive of the market’s heartbeat, Leuterio said continue to thrive and registered quite good revenues. In fact, to some higher than previous years because they are able to extend their compassion some more to those who cannot pay their monthly amortization, as of yet.

 “The market at this time is weird. It goes on and off. But, wise developers are setting aside buffer funds for account recovery programs for buyers who are having financial difficulties during pandemic,” said Leuterio.

 Admittedly, he said there are buyers that have already decided to forego their properties, or known as “back-out accounts.” But, if a sound account recovery team were to be set up, this could be minimized.

According to Leuterio, there are also winners and losers in the property development in the span of one year under COVID-19 distraction. Losers, are those developers who were not able to stretch their pocket in paying their loans to the bank while buyers’ amortization payment was at its lowest.

 Winners, he added are those developers with deeper pockets, whose bank loans are updated, thus easier for them to implement accounts recovery system.

If a developer goes bankrupt, multiplier jobs are affected, these are the back-end services such as accounting, admin staff, as well as construction workers, laborers, architects, among others.

Leuterio believes that as the economy is on the recovery path, these delinquent buyers will soon be able to get back on track—financially.