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> Housing Loan Withdrawal (Financial)

ymir06kw
post May 16 2018, 10:46 PM, updated 5 months ago

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Need some advice from the experts here..

I applied for housing loan for a property and the bank had already approved it back in November 2017 with all offer letter and SPA signed and stamped.

Recently just before the bank first disburse the money to developer, the officer rechecked my ccris and noticed that I have extra loan/commitments which were not there during their first checking in Nov that time. (I applied those after that loan approval).
And now the bank said my DSR is burst so they wanna withdraw the loan offered.
They eventually sent me a letter informing me their decision and asked me to sign and send it back to them within a time period. In the letter it did mention that if I fail to send back the letter after a week, the bank will assume that I had agreed with the loan withdrawal and they will proceed with the cancellation.

Of course now i didn't send back the letter and the officer keep calling me to push me to sign and send bk to them.

Questions:
1. Can the bank actually do like this? To recheck my ccris again after so many months of approval and recalculate my DSR then say that now I am not eligible for the loan and want to withdraw the offer? Is there any law/rule to protect me? If the loan is withdraw, who will bear the legal fee and stamp duty? I don't think the bank will be responsible for the charges.

2. If the bank really have absolute right to withdraw the loan offer anytime, why would they keep pushing me to sign the letter and send back to them? Are they trying to play some dirts behind to cover up their own ass?

Really appreciate someone from banking industry background to enlighten me...
Should I just accept their decision and sign the letter?


trust4you
post May 16 2018, 10:48 PM

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QUOTE(ymir06kw @ May 16 2018, 10:46 PM)
Need some advice from the experts here..

I applied for housing loan for a property and the bank had already approved it back in November 2017 with all offer letter and SPA signed and stamped.

Recently just before the bank first disburse the money to developer, the officer rechecked my ccris and noticed that I have extra loan/commitments which were not there during their first checking in Nov that time.  (I applied those after that loan approval).
And now the bank said my DSR is burst so they wanna withdraw the loan offered.
They eventually sent me a letter informing me their decision and asked me to sign and send it back to them within a time period. In the letter it did mention that if I fail to send back the letter after a week, the bank will assume that I had agreed with the loan withdrawal and they will proceed with the cancellation.

Of course now i didn't send back the letter and the officer keep calling me to push me to sign and send bk to them.

Questions:
1. Can the bank actually do like this? To recheck my ccris again after so many months of approval and recalculate my DSR then say that now I am not eligible for the loan and want to withdraw the offer? Is there any law/rule to protect me? If the loan is withdraw, who will bear the legal fee and stamp duty? I don't think the bank will be responsible for the charges.

2. If the bank really have absolute right to withdraw the loan offer anytime, why would they keep pushing me to sign the letter and send back to them? Are they trying to play some dirts behind to cover up their own ass?

Really appreciate someone from banking industry background to enlighten me...
Should I just accept their decision and sign the letter?
*
lol... can like that meh? the problem is november 2017 approved, drawdown orealdy or not? if drawdown orealdy then u are safe. if no drawdown then u are not safe.
trust4you
post May 16 2018, 10:49 PM

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Can you enlighten on which bank was it? public bank ?
icemanfx
post May 16 2018, 11:11 PM

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Bank could cancel or withdraw facility any time.

During 2011 to 2014, as taught by some guru, many investors pulled this trick to buy a few properties simultaneously. After some of these investors couldn't make loan repayment after vp, it is natural for banks to mitigate this risk by checking ccris again prior to loan drawdown.

Unless the borrower could convince the bank zis ability to make loan repayment else nothing much ze can do.

This post has been edited by icemanfx: May 16 2018, 11:13 PM
trust4you
post May 16 2018, 11:14 PM

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QUOTE(icemanfx @ May 16 2018, 11:11 PM)
Bank could cancel or withdraw facility any time.

During 2011 to 2014, as taught by some guru, many investors pulled this trick to buy a few properties simultaneously. After some of these investors couldn't make loan repayment after vp, it is natural for banks to mitigate this risk by checking ccris again prior to loan drawdown.

Unless the borrower could convince the bank zis ability to make loan repayment else nothing much ze can do.
*
bro, yuan lai can like this o, so better if wanna get the loan for property, ensure faster drawdown ba. else GG.com bank have the right to tarik back.
propusers
post May 16 2018, 11:18 PM

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i heard before this case but not sure how it end...
maybe can post this question to mortgage loan thread https://forum.lowyat.net/topic/3437581

Got quite some bankers there...
David_77
post May 16 2018, 11:22 PM

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QUOTE(ymir06kw @ May 16 2018, 10:46 PM)
Need some advice from the experts here..

I applied for housing loan for a property and the bank had already approved it back in November 2017 with all offer letter and SPA signed and stamped.

Recently just before the bank first disburse the money to developer, the officer rechecked my ccris and noticed that I have extra loan/commitments which were not there during their first checking in Nov that time.  (I applied those after that loan approval).
And now the bank said my DSR is burst so they wanna withdraw the loan offered.
They eventually sent me a letter informing me their decision and asked me to sign and send it back to them within a time period. In the letter it did mention that if I fail to send back the letter after a week, the bank will assume that I had agreed with the loan withdrawal and they will proceed with the cancellation.

Of course now i didn't send back the letter and the officer keep calling me to push me to sign and send bk to them.

Questions:
1. Can the bank actually do like this? To recheck my ccris again after so many months of approval and recalculate my DSR then say that now I am not eligible for the loan and want to withdraw the offer? Is there any law/rule to protect me? If the loan is withdraw, who will bear the legal fee and stamp duty? I don't think the bank will be responsible for the charges.

2. If the bank really have absolute right to withdraw the loan offer anytime, why would they keep pushing me to sign the letter and send back to them? Are they trying to play some dirts behind to cover up their own ass?

Really appreciate someone from banking industry background to enlighten me...
Should I just accept their decision and sign the letter?
*
1. Yes, the banks can recheck the CCRIS to protect themselves.

2. The signing of the document is to CYA (Cover Your Ass) of the bank. If you plan to sue them in the future, it will be the document the bank will use to defend themselves.

e-lite
post May 17 2018, 01:44 AM

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QUOTE(David_77 @ May 16 2018, 11:22 PM)
1. Yes, the banks can recheck the CCRIS to protect themselves.

2. The signing of the document is to CYA (Cover Your Ass) of the bank. If you plan to sue them in the future, it will be the document the bank will use to defend themselves.
*
Yes, banks can do whatever they want because they drafted all the contracts themselves to cover their ass.

No, you shouldn't sign any documents or letter. Then at least you can still complain to Bank Negara. This is a breach of ethics but not a beach of contract because the bank is allowed to do that. I'm sure the letter offer stated bank reserve all rights to do whatever they want. Should also share their bank name here.

My advice is try to appeal or get another housing loan with another bank. If you really lost money because of this failed deal, then go and try to sue the bank. Maybe some lawyer willing to do this case for free or there may be an existing landmark case before.
BEANCOUNTER
post May 17 2018, 01:46 AM

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Yes the bank can do this.

But u can nego with them for lower loan amt or other arrangement.
ymir06kw
post May 17 2018, 07:55 AM

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Alright. Thanks for all the input here.
I'll try to nego with the bank.
meonkutu11
post May 17 2018, 08:21 AM

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Is this one of the Multi Submission case? Or What loan did you apply after the mortgage approved?


montyashley80
post May 17 2018, 09:13 AM

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QUOTE(icemanfx @ May 16 2018, 11:11 PM)
Bank could cancel or withdraw facility any time.

During 2011 to 2014, as taught by some guru, many investors pulled this trick to buy a few properties simultaneously. After some of these investors couldn't make loan repayment after vp, it is natural for banks to mitigate this risk by checking ccris again prior to loan drawdown.

Unless the borrower could convince the bank zis ability to make loan repayment else nothing much ze can do.
*
if downdrawn already how? meaning have to pay back by cash?? where got so much money??

montyashley80
post May 17 2018, 09:15 AM

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QUOTE(e-lite @ May 17 2018, 01:44 AM)
Yes, banks can do whatever they want because they drafted all the contracts themselves to cover their ass.

No, you shouldn't sign any documents or letter. Then at least you can still complain to Bank Negara. This is a breach of ethics but not a beach of contract because the bank is allowed to do that. I'm sure the letter offer stated bank reserve all rights to do whatever they want. Should also share their bank name here.

My advice is try to appeal or get another housing loan with another bank. If you really lost money because of this failed deal, then go and try to sue the bank. Maybe some lawyer willing to do this case for free or there may be an existing landmark case before.
*
totally agreed..never sign anything that you are not sure of..what you can do is email them back to reserve your right..
in the meantime maybe can get some advise from lawyer??
icemanfx
post May 17 2018, 09:43 AM

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QUOTE(montyashley80 @ May 17 2018, 09:13 AM)
if downdrawn already how? meaning have to pay back by cash?? where got so much money??
*
After drawdown, bank will only withdraw if borrower defaulted.

QUOTE(montyashley80 @ May 17 2018, 09:15 AM)
totally agreed..never sign anything that you are not sure of..what you can do is email them back to reserve your right..
in the meantime maybe can get some advise from lawyer??
*
Many borrowers had sued bank but none could compel bank to lend them, and blacklisted by bank.

This post has been edited by icemanfx: May 17 2018, 09:52 AM
montyashley80
post May 17 2018, 09:55 AM

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QUOTE(icemanfx @ May 17 2018, 09:43 AM)
After drawdown, bank will only withdraw if borrower defaulted.
Many borrowers had sued bank but none could compel bank to lend them, and blacklisted by bank.
*
if the property under housing instead of commercial title..do borrower have protection in the housing law??

icemanfx
post May 17 2018, 10:07 AM

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QUOTE(montyashley80 @ May 17 2018, 09:55 AM)
if the property under housing instead of commercial title..do borrower have protection in the housing law??
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Housing law doesn't regulate borrowing or lending.

montyashley80
post May 17 2018, 11:00 AM

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QUOTE(icemanfx @ May 17 2018, 10:07 AM)
Housing law doesn't regulate borrowing or lending.
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oh ok thanks for the info..
so there is no way to protect the buyer?
icemanfx
post May 17 2018, 11:22 AM

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QUOTE(montyashley80 @ May 17 2018, 11:00 AM)
oh ok thanks for the info..
so there is no way to protect the buyer?
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What protection do buyers want?
montyashley80
post May 17 2018, 11:31 AM

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QUOTE(icemanfx @ May 17 2018, 11:22 AM)
What protection do buyers want?
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like in this situation..where the bank withdrawn the facility..what option is available for the buyer?

1. find another bank to get loan? if cannot get loan meaning the initial deposit will be forfetied?
2. pay cash for the property?

sorry not familiar with the loan thing..not buying any property now but good to know it first..TIA

icemanfx
post May 17 2018, 11:36 AM

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QUOTE(montyashley80 @ May 17 2018, 11:31 AM)
like in this situation..where the bank withdrawn the facility..what option is available for the buyer?

1. find another bank to get loan? if cannot get loan meaning the initial deposit will be forfetied?
2. pay cash for the property?

sorry not familiar with the loan thing..not buying any property now but good to know it first..TIA
*
Basically yes.


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