Hmm, so in essence, the owner just need to pay RM2500 instead of RM5000 and he is able to keep the house?

Wow, I wonder if anyone is abusing this loophole

What I meant is that:

1. Owner is not being declared bankrupt

2. He got to keep the property

3. Monthly commitment to bank reduced by half, ie. RM2500

4. The house is tenanted so he would reduced his monthly bleeding

5. He was able to secure RM1 mil mortgage loan in the first place, so his income bracket would be around 5 figures earner

The only drawback is maybe longer loan tenure and interest charged , I would say that is a good deal.

Hmm, dunno bout that. The FB poster didn't mention anything. Dunno how mathematically AKPK / Bank calculate the reduction.

If you read the FB comments that is not the case.

1. Owner did not lost his house.

2. Owner is using Islamic loan thus there is no increase of tenure.

The house was in lelong for 3rd round at RM500K but AKPK managed to make a deal with the bank to reduce the loan till RM500K, ie. RM2500 monthly instalment.

It seems that the owner got the upper hand while the bank lost RM300K.

KLSE