The President of the Philippines signed the Housing Condonation Bill endorsed by House Speaker Prospero Nograles into law. It is now known as the "Socialized and Low-Cost Housing Loan Restructuring and Condonation Act of 2008 or Republic Act (RA) 9507.

There is no question RA 9507 is so favorable to delinquent housing loan borrowers. Who would refuse such favor when the said RA would condone the penalties and interest of the delinquent loan? Add to it is the suspension of foreclosure proceedings.

However, RA 9507 is only applicable to Government Housing Agencies. Excluded are private companies involved in real estate business and loans under government agencies with loan amount exceeding Two Million Pesos.

The said RA also set a parameter when foreclosure will proceed. When borrowers failed to pay for three years his monthly amortization after the approval of his application to this Condonation program foreclosure proceedings will kick off.

Let us see what happened next.