In 2005, Balikatan Housing and Finance Inc. (BHFI) acquired through a competitive bid a portfolio of over 52,000 of the most highly delinquent mortgage loan accounts from the NHMFC.  These mortgage loans are highly delinquent by 10 to 15 years at the time they were sold by NHMFC and less than the original principal was repaid.  This highly delinquent portfolio was especially carved out by the NHMFC with the help of its financial advisor, Ernst & Young, for sale to a third party which was well equipped to turn the delinquent portfolio around.Balikatan’s mandate through its exclusive provider, BFS, is to facilitate collection from the highly delinquent borrowers for the benefit of its shareholders, including the NHMFC, and its original funders, SSS and Pag-ibig.  Ultimately the benefit redounds to the pension fund members whose contributions were used to fund housing loans to its members through the NHMFC and are disadvantaged as pension fund money is lost through non-payment of mortgage loans.


Our programs for our present portfolio are designed to facilitate the settlement of housing loans, and the maintenance and protection of home equity.

  • Borrowers will get the best discounted terms for the full settlement of their existing housing loans. They may also avail of refinancing options, based not only on the value of their property but fully underwritten on their capacity to pay.
  • Professional loan counselors will guide borrowers to faithfully complete their amortization schedules.
  • Property specialists will assist borrowers and buyers in securing their dream homes in their preferred areas.

BFS’ settlement options are wide and varied:     

  • Highly Discounted Pay-Off – full settlement through one-time payment or staggered payment up to six months
  • Loan Restructuring– restructuring of loans on a long-term basis
  • Dacion – voluntary surrender of property
  • Property Swap