Very certain will have no subsale transaction yet.
Both newly completed property.

What the poster meant is the defaulter lost his house, and still have to service his loan of RM2,500 per month until the shortfall amount + interest is completed. Means if your loan was RM1mil, your lelong house sold for RM500k, you still have to payback RM500k if you don't want to be bankrupt. The RM2,500 per month is for the RM500k.

In short, he lost his house and still have to repay something he doesn't have.

instalment is called ansuran in Bahasa?

why dont the bank make it a sop to offer advise to home buyer for alternative solution behind putting up the property for auction?

Can owner bid back his unit at lower cost?

We have to ask the lawyers what sort of power is given to the bank under mortgage loan. We know bank can force sell your property if you default payment. But we don't know rights is given to bank to evict the owner at this auction stage.

It can happen that the sales of property could more than enough to cover the bank loan. So the banks cannot 'jump the gun' at this moment.

But business wise, it is beneficial for house to be vacant first or else cannot fetch a good price.

If bank is given full discretion on the property, then the bank should consider evicting owner who stays there. As it makes business sense.

Banks can still try to recover the shortfall from owner but the banks should know the chances are slim.

you are wrong icey

I believe both banker and borrower/owner already made many times, cried til tears dry many round, turning table and use bad languages to one and other many times before the unit is put on auction.

unless borrower just ignore all correspondences from banker, typically if borrowers are runners or based overseas or foreign buyers.

At the end of the day, the banks still want to play soft, at the expense of the auction value of the house. We see in the example  given AskarPerang, a difference of 70k ( not concluded yet ).

Bank has the right to recover the shortfall but is it going to succeed ? If these people got no place to go and have to still stay put at the auctioning units, I seriously doubt so.

That's the whole basis of the argument. I doubt that the banks can successfully recover the shortfall.

I don't understand the bold. Provision for bad debt is a matter of it gets booked under which month or which year. It certainly has impact. You cannot say it has zero impact.

So it still has impact.

If it has no impact, why won't bank even bother to auction the property ? Why would it even bother to slowly dropping the auction price ? Certainly somebody in the bank's organisation would be interested or responsible for recovering as much as possible.

But you already said bank has full discretion over the property including evicting the staying owner. So evicting the staying owner does not compromise its legal position. Your only argument is thus reduced to bank want to stick to the old practices.

your explanation is greatly departure from your early statement....that banker doesn't want to face the borroower.

restructure two times don't have to face the borrower? in person? everything done thru wassup face time and email?

To be fair you have a shifting stand. Some times you refer to the branch as the bank. And sometimes you refer to the department which gives to loan as the bank. You said npl loan has zero impact to the bank, and "bank" is not interested in optimizing recovering the bad debt. That is obviously a piece meal interpretation of what you considered as "the bank".

Not I neglected it. You neglected it rather.

Why you post something about it has zero impact without mentioning the time frame and what not ?

We are seeing the bank as one entity, we are never concerned about how one department of the bank sees it.

Not I neglected it. You neglected it rather.

Why you post something about it has zero impact without mentioning the time frame and what not ?

We are seeing the bank as one entity, we are never concerned about how one department of the bank sees it.

this icy fella, when she made a mistake, she would rather keep quiet one....never ONCE I read a statement from her that said 'sorry I have made a mistake'.

instead she will pusing pusing story until everyone kepala pening and then she claimed victorious.

I also malas nak discuss further....with her.....
but i gave this to her....not many female forumers that engage discussion with majority male forumers here. it takes knowledge and gut, even thought in cyber world we should be seeing each person as asexual, not male or female.

Here is yet another case study to share.
1 year ago, owner bought this OUG Parklane unit via subsale at 500k. No idea this unit come ID renovated fully furnish or this is mark up to max bank valuation price.



Today this unit in the auction market at 500k (first auction) starting since Oct 18.
Now at 405k (third auction): http://auctions.com.my/auctiondetails.aspx?ID=106700

Price will certainly drop to 3xxK before attracting any bidders.
Owner stand to lose out 150+k in just 1 year.

saw 1 SPA recently just 339k only