recently my dad ask me smtg...

my dad owes various bank of debt from his over-charged credit card about rm30k

so now he worrying that our house might get mortaged by the banks suddenly cuz we still left 13k more loan haven't paid finish.

he say wanna switch his name of the hse to me and my sister. im currently working now while my sis studying U.

the prob is he want change to our name and get loan again so can clear his debts and the house loan. I think is under our name. So wanna ask issit risking to agree what he talking about? and he said he will pay the bank back monthly.

purpose for doing this: he want to assure that the hse wont get mortaged or tarik by bank if one day he get declare bankcrupt cuz the hse owner's name already become my name and sis's name.

confusing...

As long as your father pay the bank on time, there is no reason for the bank to come after him.

Transferring real estate will incur cost, I believe he never thought about it.


I would suggest your father re-finance the house and payback the credit card bill immediately.
Also he need to learn have more discipline and not spend unnecessary again.

This post has been edited by jasonhanjk: Jan 27 2009, 09:37 AM

It's not encouraged if he can still be able to pay the bank on time as lawyer's fees will incure in a transfer of property.

When you transfer name, you'll be transferring the debt to the other party.
In M'sia, you can't just do a name transfer without transferring the loan.

Transferring name means a Sales and Purchase agreement will have to be drawn up, thus need to engage lawyer. It will be treated as a sale. Besides that, you the person whom the property is transferred to will have to pay stamp duty(if property is <RM200k, if I remember correct). Estimated cost will roughly be about 2% of the market value of property.

minolta

i'm quite baffled but why don't use u'r mother's name instead?

your dad can do a transfer where it does not require you and your dad to sign a SPA.It will be a memorandum of Transfer. You will only be required to pay 1/2 of the required stamp duty (since its from father to children). If he transfered to your mum's name then he need not have to pay any stamp duty (from husband to wife).

second the banks cannot auction off your property due your dad being in debt for credit card. Thats clearly against the loan agreement. You need not worry about that.

Further your dad might actually want to refinane the property but is unable due to to his overwhelming debt. If the property is transfered to you and your sis he might be able to refinance from the banks. If you want to save cost just refinance and add both the children's name as joint borrowers as such avoid the necessity of incurring legal cost.

But beware if your dad defaults on his payments you will also be jointly liable to make payment for the housing loan and any legal action taken. So think wisely

agreed.

if u can afford paying the loan, u may want to consider buying the property from ur dad, say RM100k to pay him from the loan u obtained, rm50k to settle his debts and RM50k to him. so, u will have to pay the new loan repayment but u have the say on future dealing of the Property. instead of giving him your name for the new loan and putting urself on risk as Borrower when in actual fact u r not the owner

Get your dad to "sell" the house to you and use the surpluss cash to settle his debts.

this is not means transferring
ur dad wan to sell the house to both of u and ur sis
so u will hav to apply the bank loan in order to buy ur dad's house
so after the loan approve the bank will disburse the loan to ur dad then ur dad ma got extra cash to settle the debts lor

Unless your dad owed a huge sum enough to be file for bankcruptcy (could be 30k). Anyway since the bank owned part of your house, can the debtor lelong your house? Unless you default the payment and the bank will do that no matter whose name was the owner.

Hi, I'm Casey Hew, currently working in OCBC as mortgage executive.

Actually mortgage is one of the option in clearing your debts as it offers lower interest and higher chance in approval since it links to a collateral. But there are certain steps you need to do and pay attention to.

1) Before mortgaging the hse of course you need to transfer the owners name in order to refinance your hse to get cash. There are 2 options: By SPA (sales and purchase agreement) or MOT (Memorandum of transfer). suppose you need to do MOT to transfer ownership from father to son. but as i know, the legal fees for both SPA and MOT is the same and MOT's procedure is much complicated and takes time as well. So SPA might be your option as you can do it as father sell the hse to son.

2) 1 important thing you might pay attendtion to is your father's financial background. If he's owing banks money and it's currently under summons (CTOS or bancruptcy list) then you might not able to get loan. As in this situation assumed your father (as vendor) be blacklisted, then you're not able to apply loan as most of the banks will not accept it even borrower has a good record. Suggest that you check carefully with your father before doing anything.

3) Of course there is a risk in doing so because officially you're the borrower for the loan and it may affected you debt calculation if you want to take any loans in the future. but the good side is that you're owning the hse now. to calculate the monthly installment and further information pls contact me or email me as follow:

Tel : 012-3833405
Email : HewKC@ocbc.com

i can give free consultation in what you need to do including calculating your entitlement in mortgage as well.


Thank you!


Regards,
Casey Hew