i'm interested in going for auction property. i have never done it before. but i see there are potential of making money from auction property, therefore i would like to give it a try. i was reading at one of our local property guru's book, it stressed that it's very important to get the loan within 60 days for freehold and 90 days for leasehold property. if the successful bidder is not able to settle the remaining 90%, the submitted 10% would be FORFEITED! that's a really huge damage for investor, i have few questions in my mind:
1. i have no existing home loan, no car loan, no credit card debt, i'm financially fit to apply for a home loan. what are the possibility that i'm not going to get a loan?
2. in the book, it suggested investor to have an overdraft account (existing home loan) to cover to remaining 90%, but i'm just starting out, is there any alternative for me to work it out?
3. is there such thing as pre-approved loan from bank before i go into the auction?
4. can anyone tell me what is the procedure from "after a successful bid" until "the name of the property is officially mine"?
5. the property i'm eying is a leasehold property, i realize that i need to get approval from Land Office, i wonder at what stage i need to do it? and do i hire a lawyer to do it?
please clear my doubt...seriously confused here

This post has been edited by vdfoo: Mar 28 2010, 08:59 AM

1. Actually if you have absolutely no loans of any kind (House, Car, Personal, CC) from any bank, some banks may also reject your application because they cant check your repayment history in CCRIS. Advice you to at least get a CC first to build your credit history.

try NOT to go for auctioned LH properties, unless your 90days starts AFTER state consent is obtained...

i have no credit card debt, but i do have 3 credit cards. i pay all of them on time, no outstanding amount drag over period of time, except some installment plan

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Added on March 28, 2010, 10:45 pmhow can i clarify this? check with the auctioneer? can i request for 90days starts AFTER state consent is obtained from auctioneer?

This post has been edited by vdfoo: Mar 28 2010, 10:45 PM

I've been told that you can negotiate this with the bankers before or duriing the auction itself, but yet to personally witness real case scenarios, so Im not 100% sure.

Just thread carefully

thanks...any banker here can help me with this?

1) As long as you have credit facility in CCRIS, with adequete income documents you should have no trouble getting a loan (subject to other assessment )
2) "suggested"?
3) Yes there are a couple banks which offers some sort of pre-approved loan but i'm not very sure which one.
5) Your lawyer is your best companion in this matter, so i strongly suggest you to get a reputable one, or those with decent experience with a good attitude.

hope it helps.

first property no problem la.
if u are salaried and have payslips carbon copy easy.

but i guess the main problem would be in the state land office, since it's a leasehold property, if it has delay on transferring the name, would it affect my to get a loan?