QUOTE(New Klang @ May 4 2014, 10:25 AM)
Want to ask. Why banks' reserve price for auction properties can sometimes be same or higher than the advertised price in property classified ads? So how can bargain hunters can good value for money at auctions.
Good question. Bcoz I have the same question. If banks try to recoup the amount loan out, I'm sure they auction off at the balance loan unpaid.
The faster the property goes to auction (from buyer first signed loan to being foreclosed), the higher the unpaid amount.
Bcoz the buyer (debtor) manage to hold & pay the installment for only a short while, much of the principal debt is unpaid?
Just assuming this true.
Another scenario; if the loan/property has been held for long time and 50% of the loan is paid. Will the bank pay back the balance after the loan amount is settled via auction. For example,
Buyer bought at Rm500k. Held for 15 year and left only RM250K as balance loan.
For watever reason his house kena foreclosed and auction at Rm450k. Will the bank give the house owner the balance Rm200k back?
This assuming the owner didn't sell the house himself ..... b4 kena foreclosed.
May 5 2014, 06:52 AM

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