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 %....
Margin call on property, Does it exist in Malaysia?
Margin call on property, Does it exist in Malaysia?
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Mar 15 2013, 11:12 PM
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1,801 posts Joined: Aug 2012 |
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 %.... |
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Mar 16 2013, 10:09 AM
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1,801 posts Joined: Aug 2012 |
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. If one read the loan agreement carefully.... Most probably u will hav only one word conclusion... RIDICULOUS! |
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