-She told the father the house was in bad shape and no one had the cash to fix the house, supposedly needs RM200,000 worth of repairs. Also the husband had lost his job 7 months prior to the announcement and at 47 was finding it difficult to find another job therefore had resorted to doing Grab but only made enough to pay for the car and not much else. She asked him for RM100,000 as they had debts and the debts were causing her a lot of stress which in turn was causing her blood pressure to go up that might cause problems for the baby.

-MIL somehow checked her husband's phone and found the messages about his daughter asking him for RM300,000 and deduced the reason he wanted RM400,000 from the condo was for that reason.

Anyway a quick update to this.

After discussing their options with a lawyer.

MIL decided to do the following :-

i) Transfer the condo to both her daughters and will remove her name off the title.
ii) She will move out from that condo.
iii) She will get the 2 daughters to take care of her finances using rental from that condo.
iv) She will initiate divorce proceedings upon settling into a new rented house.

They do believe if he is kicked out that he would probably go back to the 1st wife's house.

Yup they are into ancestor worship which I think may have something to do with why he is so gung-ho on a child bearing his family name.

Haha... my wife only thinks everything of mine belongs to her. No such thing as half as she like the MIL they believe if they don't own everything of his then another woman can own it too.
Well as repugnant as it is a situation I will definitely have to stand behind her instead of staying neutral.

I would imagine the situation with your father must have opened up some deep raw wounds, hope it has healed by now.
You sure do feel strongly for him

Anyway just so you know MIL did tell him she was putting the 2 daughters' names on the title of the condo and only after that they would look into getting a mortgage on it. What she did not tell him was that she is removing her name off the deed as well.

He was agreeable to it and is still under the impression he will be getting his money.

As for getting him out, currently MIL has some knee issues and can't walk far. We are renting a single storey house paid 50:50 by both daughters and both of them will get moved to the rented house. Once he is out, locks will be changed and will get a contractor to start hacking to make the place inhabitable.

Once he is out of there and transfer complete, he will be told mortgage only for RM120,000 and will be told no money to give him as must pay stamp duty and legal fees plus the renovations needed to rent it out. If he doesn't put up a fuss MIL will just let him be, if he does then she will tell him the house they are staying in their 2 daughters rented for her so he has to get out. If he don't want to get out then we will find her another house and let him deal with the landlord.

As you put it earlier hell hath no fury like a woman scorned.
1) She doesn't want any part of the condo to go to him in an event of a contested divorce.

2) At this moment the 3 women couldn't care less if that's what happens to him as they view it that he has betrayed them and they are basically fed up with him.

3) MIL's upkeep is mostly through the 2 daughters giving her RM500 each every month. If she loses the condo then she will live with the 2nd daughter I guess?
Doubt my father would agree to that

MIL giving 50% or all to FIL is not an issue if uses it for his business and to plough it back to the family later after getting his returns. All sensible wife will die together with the husband but will not die with him because of another woman.

But taking the 50% and pass some of it to buy a surname ?  What happens when all money gone? When someone can come up with this reason for money, there will be many more b4 FIL is milked dry. Otherwise scammers wont have good time. If the pregnant daughter knew what the father wants, husband and wife can do it voluntary. If the husband disagreed, a mil dollar cannot even make him change his mind.

Status quo and things will be less complicated. As stated earlier, 1 slap to keep the house, why not?

By the way, me no talk heaven to frighten people.

He is a boy.
Yes quite unexpected that they took him in especially as it does appear that they aren't exactly well off.

He also told the MIL he wanted a divorce and he has already taken what he wanted to take and from now on he didn't want to speak to her or her 2 daughters again. Told her good luck in her life as no one will take care of her from then onward.
He said he did not take the registration card. Just found it, turns out it is in my safe at the bank.

Yes we changed the locks, he returned the key and access cards which we told the management to cancel access in case it had been cloned. 

Well at the end of it I told my wife to give him RM5,000 and told him to use it to treat the issues with his knees, he threw the money back at her saying he didn't want any money from them.

TV? He admitted to taking it but said he had given it as a gift to his 1st(ex)wife. Told the MIL if she wanted it back to go get it herself as he was done doing things for her. I told my MIL to let it be we will buy her a new and better TV. She is still sulking that she did not get back her TV.

Traditional marriage during those days are considered legal. Nevermind, this aside, 1st wife left him whether legally or otherwise.

Which women, whether legal or otherwise can share a husband ? The minute one finds out, the exit plan will start.

We sat to negotiate. He said he wanted a FAST divorce and by fast he meant before year end or by latest before the eve of CNY. Said he wanted to be rid of the bitch and devil by then as he couldn't tolerate all 3 of them. He did not want it to go to court and said because he was offering an out of court settlement that means he wasn't contributing towards any legal fees we had incurred. He said he was willing to offer RM130,000 to walkaway, she keeps her condo, she doesn't make any further claims on him and doesn't ask him for any alimony. I told him it needs to be closer to 50% and MIL is under the impression that condo has a value of RM630,000 and she was banking of at least RM300,000. He said he could not raise that type of money. I told him to think like how my MIL would think, he has known her inside out for more than 40 years, he should know her character extremely well. He asked if we could agree that the condo was worth RM480,000 to which I agreed. He offered a RM210,000 and said it is how much his ex-wife was willing to loan him and that was her entire lifetime savings.