let say b4 bubble burst, house worth 500k, loan granted by bank is 500k

after burst, house worth 300k

then owner default payment, bank auction the property for 300k.

the difference of loan given and auction price is, 500k - 300k = 200k.

bank ask owner to top up the 200k or more to recover their loss.

optional:

owner no money but got another property worth 200k , fully paid up.

bank force owner to sell the property and take the 200k.

owner left with no money and no house.

this will only happen provided the owner is jobless and lazy...

and how will the bank force the owner to sell the 200k prop? with a gun?

bank might include the clause in the agreement.

they will build their own rumah papan

smart... you going to sign that agreement?

loan fully repaid = no attachments to the bank, no?

nutjib so pandai now. he will anounce soon GE.

after that for sure bubble burst. he escape.

smart... you going to sign that agreement?

loan fully repaid = no attachments to the bank, no?

in the sky?

so bubble will burst if the people dont have source of income?

it is the 500k loan la. you refuse to sign then no loan given lor. 

bro... you mentioned in your optional statement that the loan is fully repaid, then below that you added bank force the owner to sell, not logical right?

bubble only affects investors la... <--myth; facts is .. investor will benefit bcos price plummet, only speculator kecut telor.. 
home buyers for own use while benefit if bubble really burst <-- home owner will kecut telor as well as their loan now will cost more due to high interest.. sooner or later they might default the loan..

anyway, if the bubble burst, your telor also will kecut... that time you will think of saving for the rainy days in case poop drop from sky... <-- tat y i say normal people will still kecut telor when burble burst.. but those who have lot of cash on hand<--investor.. will benefit alot...

so if you buy now you pay more if you buy after bubble burst, chances also you can't find one or your telor still kecut...

the bubble burst when the demand stops and the supply is too much..

from http://www.hba.org.my/faq/on_housing_loans.htm

Q: What can the financial institution do if I do not make repayments?
A: If you fail to make three consecutive payments, the financial institution will take the necessary actions to recall the loan. In the worst case scenario, the financial institution will foreclose the property and sell it to settle the loan. The borrower would still be liable to pay the difference between the auction price and the loan amount outstanding.