I would say most of the precast concrete or concrete based would pass, but the panel based ones more often than not wouldn't pass, even they show SIRIM and other certifications.

Its very costly for a bank to handle property, not least because it ties up manpower. No bank wants to spend manhours on a low-cost house thats worth 100k or less. Thats not even including the legal hassle of eviction.

Thats why they just auction them - even the auctioneers are not bank employees.

Foreclosing is really a last option.

Agreed, that's why banks will always make defaulting the last option for mortgage holders too. We should not lose sight, however, as to the mechanics of the economy, ie consumers have a lot of power if they know what to do.

there are a number of ways for borrowers to delay but not prevent foreclosure. at the end and most importantly, borrower must be able to make loan repayment.

What do you think will happen if ALL borrowers refuse to repay?

Couldn't happen.

"Couldn't happen"? Look at the sub-prime crisis, and that's not even all borrowers.

Anyway, since you are unable to participate in the thought exercise, I will tell you, if all borrowers default on their mortgage, absolutely nothing will happen to the borrowers, the banks on the other hand, will be shitting in their pants begging for govt intervention. People will make a bank run, banks will become insolvent, real estate agents will lose their jobs, the economy will buckle, and believe it or not, after 3-5 years, you will see much more stable property market and property market, after developers, agents and banks learn that it is stupid to treat real estate properties as "an investment".

anything will be worthless if there is no buyer demand

Residential constitutes at most 25% of bank loan portfolio. Of which, less than 1/2 are property vped in last 10 years. Even 1/3 of these in default will not cause bank to go under. However, banks will be reluctant to take in more residential loan until situation improve.

This post has been edited by icemanfx: May 25 2019, 08:01 PM

Icey still not time to buy ah ?
bearbearwong already open still own firm...if no one buying that will be very bad for him le

Buy when blood is knee deep on the floor.

BBW is specialized in foreclosure, good business for him.

When is blood knee on floor ?u been repeated this for many years dy ..

Poorperly is illiquid, price take years to bottom.

Bank valuation.
Do understand what is bank valuation VS market price.

Here subsale transaction at the same project: https://www.brickz.my/transactions/resident...e_consideration

Happened before.

Where and when?

Of course it will go under. No organization can survive losing 1/3 of their asset, if it's a public listed bank, they're going to lose more than 1/3, way more.

If npl is at elevated level, gomen/bnm could move toxic assets to spv like danaharta.

Lol. If you don't even know this then you probably not qualify to comment at all. Anyway somewhere buried deeeeep in this thread already talked about this. Do your own homework.

Hehe... Want try Canada 50% drop?