Nov 1 2018, 01:09 AM
QUOTE(djack @ Oct 25 2018, 01:20 PM)
where do you all find the list of these auction houses? im looking for one especially those new developments where the buyers can fullfill the loan
Cimb auction mart is one of them , you can also google auction “bank name”.Or you can even search at propertyguru or other property websites with keyword auction.
QUOTE(2387581 @ Nov 1 2018, 12:34 AM)
can loan to buy auction unit?
what are the expected upfront costs for buying auction units? or has to be total price + costs? what about the other parties (bank's people) who try to inflate the transacted price during the auction?
Can loan but you need 10% bank draft ready to register auction itself. Bring some extra cash or extra bank draft to top up if the bidding goes high. You need to pay 10% purchase price on the auction day itself.what are the expected upfront costs for buying auction units? or has to be total price + costs? what about the other parties (bank's people) who try to inflate the transacted price during the auction?
Loan usually you get 90 or 120 days to come up with the balance amount so if you’re taking loan you need to do things fast, next working day submit loan application and chase chase chase the bank officer.
After loan approved, you also need to clear a lot of other things before the bank can disburse the loan. So you need extra cash to pay any outstanding maintenance, land office dues etc. All this can be claimed back from the bank by submitting the receipts to your lawyer, but you need to fork out the cash first.
Banks won’t send people to inflate the auction houses, they want to clear the houses ASAP right now. Previously maybe got some prop agents try to do that but not anymore. They can’t afford to swallow the unit if no one outbids them.
QUOTE(2387581 @ Nov 1 2018, 12:40 AM)
wait, how? all these while the borrower has been servicing the loan. at some point, he failed. bank exercises force-sell.
now there are 3 scenarios...or more? correct me if wrong
- sell at market value. bank earns the $ previously paid by borrower, plus the wholesome of the market value $. handsome profit.
- sell below market value - can cover principal outstanding, bank breakeven with normal profit on interest.
- sell below below market value - cannot cover principal outstanding, bank still chase borrower to pay even though he already lost the house???
cannot sell at all then how?
3 scenarios:now there are 3 scenarios...or more? correct me if wrong
- sell at market value. bank earns the $ previously paid by borrower, plus the wholesome of the market value $. handsome profit.
- sell below market value - can cover principal outstanding, bank breakeven with normal profit on interest.
- sell below below market value - cannot cover principal outstanding, bank still chase borrower to pay even though he already lost the house???
cannot sell at all then how?
sell above the bank loan balance, extra profit goes to previous owner
Sell right at bank loan balance - bank take all
Sell below bank loan balance - bank will chase previous owner for the balance amount.
Cannot sell at all then they keep dropping the price until someone takes the unit, usually reauction after 2 weeks to a months time nowadays.
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