never happen in ASIA, because, the law in asia is different from US.

in US, the borrower did not paid, the bank sell the house, even the selling price cannot cover the loan, that is it. At the end, bank suffer. so, if the house value is lower than the loan, bank will sell fast fast, try to get back as much as possible.

In Asia, the borrower did not paid, the bank sell the house, if the selling price cannot cover the loan, the bank can ask the borrower to paid the different. borrower cannot hide.

So, in Asia, there is nothing good for bank to call the margin; or says, they no need to do that.
but, there is cons to do it. if the bank call the margin and make the borrower cannot paid, and bankcurpt. the bank suffer.

So far, in asia, if borrower keep on paid the installment on time, bank never call margin.

on the other hand, if borrower delay payment, even the valuation still high enough to cover the loan, the bank will do many dirty things, such as increase the interest rate.

in hongkong, property price happened drop half, bank did not call margin.

yes, they have the rights. but, they never use this rights.

This post has been edited by realcyma: Mar 16 2013, 07:33 AM

the right they reserved is that they can reevaluate the LOAN without any restriction.
that means, they can suddenly call back the loan, EVEN, the valuation is higher than the loan amount.