TS didn't say private auction at all...

I doubt that many people in Malaysia even realised there is private auction, bcos whenever you see lelong ad, almost 99% is bank auction.

If an owner wants to sell house in an auction, he goes to the bank?

Yeah but may I know what method to repay the balance? Is there any way other than bankruptcy? I am mentally prepared for the worst case but is that possible for me to pay the balance by monthly instalment? I would rather pay than to keep holding the property.

Talk to your banker about converting the balance to personal loan and work out a fixed monthly payment you can afford.

The bank wont sue for bankruptcy if they can recover the money. Is of no benefit to them if you have no other assets. Prove to them that you can commit to the new repayment term.

Thanks so much for the explanation. Btw I am sure the interest rate of the personal loan will be super high then?

It will be higher because is collateral free. Try to nego for good rate.

https://loanstreet.com.my/personal-loan

This post has been edited by mini orchard: Dec 4 2019, 04:55 PM

Hi, if i opt for volunteer lelong, can we fix the price by ourselves? Let say lower than this price then we rather not sell even in lelong market. Any fee charges if we dont sell successful?

Basically you are looking for a deal that benefit you 100% but not to banker and your subsale buyer.

go to tai yee long.

Auctioneer advertise and work for free?

Anyway, which project and what is the rate you are looking for?

It's an office lot in Kenwingston Square Garden.

Converting balance after auction to personal loan is like extending banking facility. If bank decided to proceed with foreclosure mean it wanted to exit the relationship, unlikely to extend further facility.

If borrower sell in open market, not in default and apply to convert any short fall into personal loan, would stand a better chance to be approved.

This post has been edited by icemanfx: Dec 5 2019, 12:41 AM

If borrower decide on your second option, my replied is the same like you mentioned.

If borrower prefer the foreclosure option, The bank have no choice but also to grant the PL. They are only interested in getting back their money even though it takes a longer time. Borrower will have a better chance to nego for a monthly repayment according to ability to pay rather than bank fixing an amount during application.

In most matters relating to debtors issue, creditors have no choice but to accept if debtors are willing to settle. If the bank prefers the bankruptcy route, it will still have to be instalment amount according to ability to pay unless as said, borrower have other assets.

This post has been edited by mini orchard: Dec 5 2019, 05:47 AM

After foreclosure, pl if granted, loan interest will be expensive.

This post has been edited by icemanfx: Dec 5 2019, 10:02 AM

That definite. At least is on a lower 'principal' sum.

Overall losses will be less if could liquidate before become npl.

This post has been edited by icemanfx: Dec 5 2019, 10:17 AM

Example owner auction ads:

Is Ng Chan Mau the only auctioneer with high traffic?

Interested to list my unit via owner volunteer auction. Property is in Johor though

I am surprised that Sime Darby prop has a cash back scheme. Cash back scheme (and similar gimmick like guaranteed rental returns) are a red flag. Means that the property is overpriced and/or not popular. Owners have to wait a long time for the market price to catch up to developer selling price. I wish you good luck.

thanks mate. sold it already