Developers and speculators are victims.

All cost incurred in foreclosure is borne by borrower and is not cheap.

Hi guys, just sharing some info my friend shared to me earlier this week, but not sure how true it is, maybe some of you here with more experience can shed some light for this matter?

Based on what my friend told me, it is against the law to allow the extension of  payment settlement due date of 120 days from auction date as stipulated in our country's law?



I bought an auction unit (LACA) around end of February, and my POS stated that is it at the discretion of the Bank for any extension of due date.



So is extension of payment settlement due date actually allowable by law or not?

Missing payments will not automatically make one a bankrupt.

When liabilities exceed assets technically one becomes insolvent.

In order to become a bankrupt- one needs to have debts in excess of rm 50,000.

Then the creditor will need to go to court and first prove that you owe them the money. Then if you can’t pay - file a bankruptcy action against you. Then the official assignee  take conduct of your assets and try to settle your debts.

Usually for mortgages - they foreclose the property first then if there is still monies owing in excess of rm 50k- carry on with bankruptcy proceedings.

I’m malaysia the mortgagee I.e bank doesn’t make the arrangements for viewing. However for vehicle auctions they allow.

In the UK and US- financial institutions prepare comprehensive reports about the property which is foreclosed.

Well I guess that’s one of the traits of an advanced society where consumerism is very strong.

If bankruptcy action succeeded ahead of auction, OA will take over the property from the bank to dispose and which the bank would not want this route.

BTW, a property on auction doesnt meant that the owner has no money.