Margin Call hitting expats

[Roborovskii]

Just read this off salary.sg

Anyone having property loans getting stuck with the same prob?

http://www.salary.sg/2008/margin-call-on-your-housing-loan/

Edited November 12, 2008 by Roborovskii

[Octopus]

This Margin Call thingy only affect non-HDB property, right?

I guess even HDB owner taking bank loan would not be affected?

[Roborovskii]

Honestly I don't know, cos I never read the HDB fine-prints... i mean there was like over 20 pages to sign but I am guessing they do not have margin call? Maybe someone who knows better can confirm.

 

*ADD* Oops mis-read your question. HDB financed via bank... no idea either Sorry no help here, gotta wait for someone who has more experience and who has read the fine prints. But since the salary.sg site stated that it applies only to non-HDB loans I am guessing HDB owners are safe.

Edited November 12, 2008 by Roborovskii

[Silver_blade]

Don't think so. My ex-neighbor bought their flat during the last boom at over $600K, but in 2007, the property is only worth $350K. They were told to pay part of the shortfall in cash.

 

I don't if they really pay that in cash or made some installment plan with the bank. My parents moved out of the estate soon after.

[Roborovskii]

Their loan from a bank? In this case, alot of people might be going bust if the banks start making margin calls to homeowners. Next year property prices expected to drop.

 

*ADD* In this case "non-HDB property loans" simply means loans not taken from HDB but from a bank. So even if you are financing a loan for your HDB flat from a bank, you might get a margin call.

Edited November 12, 2008 by Roborovskii

[Silver_blade]

Yup. I don't know the full detail. But my guess was cos the value of their flat is almost halved.

[Falc]

Those expats were talking about aussie properties serviced in loans denominated in SGD.

 

The drop in AUD, coupled with the slide in property market, means the value of the aus property is much less now, esepcially measured in SGD.

[Throttle2]

Whatever it is, hopefully people learn that just having enough cash to down 20% for a property is simply not good enough.

 

Make sure got more cash behind, else will die very ugly.......

[Wt_know]

whatever it is we are at the mercy of the bank

[Silver_blade]

Whatever this report is about. It looks like it could happen to s'pore too. My ex-neighbor was an example (tho I do not know how much they were asked to top up and what amount they eventually did, etc)...and the economy wasn't this bad yet when it happened to them.

[Roborovskii]

Lucky me I took my housing loan from hage-dee-bee

[Falc]

When was that? Recently?

[Silver_blade]

Heard from my ex-neighbor in early 2007...at that time, they have not reached a settlement with the bank. Bank may have been knocking on their door much earlier.

 

My guess is that the loan amount far exceeded the value of their flat and the bank probably feel their flat value will never going to reach close to the purchased price within a reasonable period. Just guessing.

Edited November 12, 2008 by Silver_blade

[Silver_blade]

Loan from HDB should be safe.

 

But I think the my neighborer's case should be rare. Most wouldn't commit to an over priced flat...unless they have cash from en-block.

[Chrispie]

I heard from a friend workg in a bank says taht as long as you pay up every mth on the dot, they wont touch you. but if you default.. hehe.. die.

 

They will then do a revaluation and recalculate and make you pay the difference. Sure bankrupt.

[Donut]

HDB loan is safe/secure... no such thing as wat the bloody banks are doing

 

those on bank loans better be worried abt this margin calls. Banks do implement this margin calls when the economy is really in bad shape

[Solar]

thought there's this over $800k hdb flat not so long ago? those would likely kenna?

[Carndablues]

  Quote

thought there's this over $800k hdb flat not so long ago? those would likely kenna?

 

that was paid in full by an older couple who had struck it rich with an enbloc.