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 Margin call on property, Does it exist in Malaysia?

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AppreciativeMan
post Mar 15 2013, 11:12 PM

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Yes they will.
Eg. If you hav outstanding loan of 80% of prop value, and prop price dropped to 60% of initial prop value... Bank reserves the rights to call u to top up the 20 %....
AppreciativeMan
post Mar 16 2013, 10:09 AM

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QUOTE(KLsooner @ Mar 16 2013, 08:55 AM)
Read the loan agreement carefully. My loan agreement clearly stated bank reserve the right to reevaluate the property but did not state clearly whether they will call a margin or not. But If they reserve such a clause to adjust the valuation of the property in a later date, meaning they will take some measures to cover their back side, anyway it is not good the borrower when property price falls below outstanding loan amount.
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If one read the loan agreement carefully.... Most probably u will hav only one word conclusion... RIDICULOUS!

 

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