He is already expecting to sell below his outstanding loan.

I wish to add on another point for clarification.
This is only applicable for auction situation under court order.

For own selling property below the loan outstanding amount and need to top up to clear the balance, the bank WILL NOT help any offer any repayment loan or use own reserve to offset it.

You are digging another big hole as this would affect a lot parties.
The SPA agreement with the new buyer will be call off eventually since you are not able to pay off the remaining balance.
Lawyer fees, stamp duty, time and extra unnecessary frustration to existing problem

Don't simply make decision without knowing the consequences. Innocent parties will be affected including yourself.

Ya, use AKPK, to buy time and space:

1. pay minimum monthly payment for the next few years,
2. wait for the property market price to come back (after2-3 years, price should goes up x%),
3. then sell it off.

I just hope they have the $$ to pay for the next few years or even months.

???? Take what jump?

1st, What is the outstanding balance in the house loan?

The lelong prices are just indicators on the market prices. The real market price is what you get in the actual sale.

Lelong means auction. You can also sell by means of auction if you want to sell in a hurry.

Selling at a lost... it means selling at a price lower than the purchase price. It doesn't necessarily means the selling price lower than the outstanding balance. (What's the outstanding balance?)

If really cannot coup due to different financial situation now, and must sell the house; better to do it quick rather than delaying the inevitable... as interest cost will accumulate over time.

Yes searching for agent to sell the property

https://www.mdi.gov.my/index.php/home/faqs/...s%20been%20made.


Another perspective... no big deal ..being bangrupt..
Automatic discharge from bangkruptcy aftsr 3yrs if fulfilled certain conditions..

Better conserve dwindling household cash than spend ot on lawyrr fees.. instalment ... etc..

No ill intention here... bangkrupt is not dearh sentence

Yes, bankrupt is an option for the family.
If the loan is on individual then it's ok . One person bankrupt, rest of the family is funding the bankrupt individual.

But now imagine most memebers in the family is the loan borrower and garantor. All goes to insolvency, how they continue?