just have to keep on hunting and trying. not easy to get a true deal, have to work for it.

What actually happened?

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They bought at 850k the house 15 years ago. Sold at 1.44M in lelong. 1st auction at 2.4M.
Well at this property segment, it is completely normal. Yes, make sense this lelong transacted price + owner still staying unit.
After paying for 15 years, loan amount left 800k? Sold at 1.44M. Deduct all cost 100k maybe? They still got surplus money out of this auction. Take and find another house back at kampung to settle down.

Actually 9 out of 10 owner with house kena lelong will give the same reason that they did not know it. Bank did not inform. Salah rumah. Salah bank. Is the usual reason given.
Bank is not "along" unregistered company. Bank cannot simply lelong or komplot with the buyer. Got legal process bank need to follow, obtain court order, etc. Yes part of the process is informing via snail mail.
1st auction will be at bank valuation (or just slightly below), done by the bank appointed valuer. Every time no taker, the price will drop 10% and re-auction at next round. For this unit, of course already dropped price many rounds.

Okay found the house: https://www.lelongtips.com.my/property/5518...r-for-RM1440000

Previous Auction(s) for this property
Auction Date Price
9. 2018-08-13 RM1,440,000.00 - finally got ppl willing to buy! congrats!
8. 2018-05-02 RM1,440,000.00 - no bidder. price maintain. bank decided not to drop price.
7. 2017-12-18 RM1,600,000.00 - still no bidder.
6. 2017-11-13 RM1,600,000.00 - no bidder. bank decided not to drop price.
5. 2017-08-09 RM1,749,600.00
4. 2017-05-09 RM1,944,000.00
3.
2.
1st auction at 2.4M in 2016.

After 9 rounds of auction since 2016. Takkan still dont know or not aware of house kena lelong. Even the bank decided to maintain price at 1.6M for 2 rounds and 1.44M for 2 rounds.
Once they missed their payment. The effective interest rate wont remain the same anymore. From 4% can go up to 10+%.

This post has been edited by AskarPerang: May 29 2019, 10:27 PM

oh playing victim lah? but the one u give link is in johor. Based on the article is in shah alam bungalow. Or is it fake news lol

Something does not add up here, how on earth does a repayment amount "naik 2 kali ganda" ?

Their story a lot of loopholes and contradictory statements. They better not sue the bank, because the lawyer sure take out this news article and show how the defaulter twist and turn the story.

Actual house address is: No. 5, Jalan Limau Lelang 4/4J, 40000 Shah Alam.

Okay I didnt realise.

If seksyen 4 shah alam then is this house: https://www.lelongtips.com.my/property/5729...r-for-RM1134000
Sold at 1.44M maybe. Doesn't really match the story actually as stated only single bidder?
And the bank valuation for the house only 1.8M.

Previous Auction(s) for this property
Auction Date Price
2018-11-16 RM1,260,000.00
2018-04-25 RM1,260,000.00
2018-02-08 RM1,400,000.00
2017-10-31 RM1,400,000.00
2015-06-23 RM1,800,000.00

No other lelong house from seksyen 4 shah alam.
Leasehold until 2079. 60 years left. They should count themselves lucky actually got ppl willing to bid up the price.

You try defaulting your property term loan for 3 months then you will know

When become default, I think the bank will impose 8-12% interest rate. If I am not mistaken, when you default bank has the right to recall full amount of outstanding loan too. Your monthly repayments default suddenly become settle full outstanding amount.

This is the irony of things. If you have paid down your loan, bank is very quick to auction off your property because your outstanding loan is very little. So even if auction at any price, for sure can cover your outstanding amount. If you outstanding amount is 90%, then bank will be willing to talk/appeal/restructure because they don't want to incur losses. Remember banks are for-profit organizations.

The fastest way to lose money in property investment is when you turn into desperate seller.

This post has been edited by AskarPerang: May 30 2019, 11:34 PM

Another case example of when price drop too low, attracted many bidders.
End up price jump up higher not only previous round reserve price, but previous 2 round reserve price.
Worth it?

Zero lot banglo unit at Rawang: https://www.lelongtips.com.my/property/5815...or-for-RM472390

Bank value 800k. Subsale market asking 700k+.
Lelong history (all no bidder previously):

Previous Auction(s) for this property
Auction Date Price
2018-12-05 RM524,880.00
2018-07-19 RM583,200.00
2018-03-13 RM648,000.00
2017-12-21 RM720,000.00
2017-08-23 RM800,000.00



From 472k.
Sold at 610k.
Why didnt bid at 524k?
Why didnt bid at 583k?

Auction is a place to witness panic mode as well as manipulation of brokers la. Those kantoi units hardly hav such scenario. Those sibeh gd units maybe won't c 2nd round or not even into auction but settle with genuine buyers. Anw oso hardly happen 🤣🤣🤣

I disagree that they do not know that their house is being lelong. Agents will sure flock to their houses when they know auction date is in a month. Secondly, they will be asked to defend, as Tupai mentioned via snail mail, if they can make arrangement for financing options with the auctioning bank. Absolutely impossible that they are unaware of this.

THE number of properties entering the auction market as a result of default payments is expected to increase in the second half of this year, a valuer said in early May.

A source from a bank confirmed in late May this may be the case.

Banks begin foreclosure proceedings if borrowers default for three consecutive months instead of six as was previously, the bank source says.



The other difference Leong has noticed between then and now is the rise in high-end units in today’s auctions. In previous years, most of the properties were below RM500,000. Many are RM500,000-RM1mil and above today.

It takes a longer time to sell. Before, a property can be sold after the second or third round. It takes three to four rounds to sell today, with a 10% drop in price for each round, Leong says.

Banks begin foreclosure proceedings if borrowers default for three consecutive months in compliance with mfrs9.

Cross default if implemented will be the killing blow to many stretched flippers.

This post has been edited by icemanfx: Jun 15 2019, 01:23 PM

that means bank will lelong the unit if the monthly installment not being paid for 3 consecutive months instead of 6 consecutive months previously?

Not necessary 3 consecutive months of non repayment, 3 months of non repayment is considered npl. Bank will commence recovery process e.g recall facility and may end with auction and bankruptcy proceeding.

so strict now ar the bank?

BNM guideline.

U talk sense ..

do not forget Trump threatens a recession if he does not win the next election.

Some investors here still talk big..