Hi all,

Asking for family member.
Currently they have try to ask around for buyer, no buyer interest.
There's multiple unit on bank lelong and also many units sells below market price.

This just example
The leasehold property initial price is 1 mil. Loan at 900k
Bank lelong around the area unfurnish 800k, online property price tag around 800-850k.

Urgently need to dispose this property. Due to not able to coop with it.

Few question,

1) if the property sell at loss, how does the offset amount been paid? The bank will still give another loan for that offset?
2) it's RPGT still in effect if sell at a loss?

Appreciate the answer

I think the bank will not lelong at loss but to recover the loan amount from previous owner. Your loan will be new chapter.

icemanfx

When lelong at loss, you still owe the bank the balance amount. It just didnt disappear away.
Next they will placed caveat on any other existing asset under name and worst case they just file suit for bankruptcy action against you

RPGT not applicable since there isnt any gain. Real Property Gain Tax is gain differential between previous SPA price and new agreed SPA price.

This post has been edited by VireCwx: Mar 13 2023, 08:36 AM

Try to sell it on your own by nego n lowering price before it masuk lelong

Masuk lelong adi its buyers market n the true price buyer willing to pay

Which property is this? KL area?

Thanks for quick answer.

So meaning if property sell at loss. They will find ways to take back the loss but not offer another loan?

Can't, that area not very attractive. There's many lelong unit. If I understand the correctly here.( Any unit sell below market price is lelong?)

With the urgency of disposing the unit, lelong is the only way

Lelong means u default banks monthly payment isit

Good luck if many lelong units means those sifu buying lelong will wait for even attractive price drops

Prepare

They will send another letter notifying you about the balance amount you still owe them and dateline to settle balance.
Failing to settle will incur charges and interest along the way which will accumulate and balloon into bigger amount.
You will need to find ways to settle the balance.
Either take another personal loan(highly doubt sufficient and cost effectiver since big amount and shorter installment period) or from family and friends.

if loan balance 900k, property lelong at 800k, you have to immediately pay the 100k different in cash.

usually bank lelong means you didn't pay the house many months. the bank reposes the property. your credit score is gone case already, cannot take loan anymore and blacklisted by the bank. then they will lelong the unit. if u owe 900k, and the lelong only sold for 800k, you still owe the bank 100k. you need to go to the bank and talk to them about repayment plan. during all this time you can't take any new loan because credit score is basically gone case.

Thanks all for the quick respond

And to clarify. Property haven't lelong. Just most neighbourhood property here all lelong.

Just in desperate means, family member willing to go as lelong price.

So from what I understand. Meaning we can negotiate with bank after the house is sold and ask for repayment plan?

This post has been edited by munak991: Mar 13 2023, 09:02 AM

no tax

you can finance or pay the difference

simple

Ok, 👌
So to finance the remaining.
What kind of loan usually bank will offer?

You can forget about the repayment plan if it ever offer
It's not gonna another 30 years with housing loan interest.
Just simple maths
Based on RM100,000 / 12 = RM8,333. That one havent calculate any additional charges.
If cant handle the current payment, dont even think about the repayment offer if it ever happen.
The period is just 1-3months during the transaction period of tranferring the title from one bank to anoher bank

So meaning....even if the loan is settle the repayment gonna be very short...?

Yes, since no more collateral for this repayment offer.
The house already auctioned off.
Imagine for loan with collateral with 30 years repayment of low interest yet debtor not able to service, bank will not risk further.
You better off sell through agent or ownself.
Once in lelong, you are at the market's mercy.

Your property title is with Bank A.
Buyer B and Bank B will need your title to be discharged and recharge d back to them.
You cant discharge a title when there's still owing balance. Worst case the bank will use their own reserve to pay off the balance in order to proceed with process.
That's where you will get charge for interest since it uses bank own's reserve to offset your balance owe amount

Ok, this is the real answer I wanna hear.
So it is slim bank offer repayment? How it is bank will offer repayment plan instead?

I guess this is the last choice, this need property agent to handle the advertisement....

Which bank are you referring to? A or B?

No RPGT if seller sell the property at loss since there is no profit.

If the selling price is less than the seller's existing bank loan, then seller has to pay the difference to the bank in order to complete the transaction. Except for personal loan, I don't think bank will give any loan to seller to pay for the difference as there is no security / collateral