895 HDB Homes Foreclosed By Banks!!!

browniebaobao SG

i always think of it this way...

only buy a flat/car when u know u can afford it.. and i dun mean u have to sweat/slog to pay for the instalments.

if u really cannot afford it, dun buy. dun go get a bank loan.. bank interests are very high.

but some people just like to haolian and hao4 gao1 wu4 yuan3..

and one more thing.. before u get a loan or sign anything, get the t&c right~!

oldbandit SG

Neutral party.

I am working in the "Collection" line, for a bank to repo the house is not an SOP. Banks dont repo once it reach the 90 days due, most will nego for repayment rather than just seize and sue. If a person is adjude a bkpt, it will do the bank no good either. Same goes for reno loan, credit card , autoloan etc, banks will rather engage collection service to recover as much as possible than to waste money on legal action. Most legal action carried out is because banks find that that particular debtor have the ability to pay but chose not to hence the procced with legal to pressure them to pay. But to those debtor now, being a bkpt is nothing to them as them always assume only 3-5 years they will be free man. Not that banks / gov in inhumane to evict them from the house, but alot of nego and attempts is done to allow the debtor to pay the dues in instalment or have given debtor a chance to downgrade but no valid. Alot of pple out there are using the plastic card to spent the money that they are not even earning. Maybe instead of pointing fingers at banks and gov, we look look things the other way, the teaching and mindset of the younger generators...

Just my humble opinion**

oxford mushroom SG

Why would people look at the irresponsible spending habits of Singaporeans when it is so convenient to blame the government for everything?

ghost2345 SG

It is bank loans. Banks are driven by profits. It will be easier to negotiate if you take HDB loans

qooorange SG

good suggestion. This is a lifeline for those with financial troubles

qooorange SG

Only for the 1st year, thereafter it is a floating rate and can change as frequent as 4 times a year, varying between the different quarters. Interest rates during good economy is much higher and defintely a killer when your pay increment is not in tandem with the growth in economy.

Atobe SG

Originally posted by oxford mushroom:
Why would people look at the irresponsible spending habits of Singaporeans when it is so convenient to blame the government for everything?

The fact remains unchanged that this Government has profitted tremendously from the artificially high sale prices of HDB flats built on land repossessed with compensation below market rates; built with cheap funds borrowed from Singaporean's CPF accounts; and sold at slightly below commercial home prices.

Is it not brilliant banking and accounting strategies - that after having built the flats with low costs CPF monies, the Government will charge a higher sales price for these HDB units ?

This exercise will end up with the Government's loan from the CPF being balanced off by the high selling price, and earning a windfall profit in the process - without the Government even attempting to return the loan.

Those who do not live in HDB flats will at least see the return of the monies that the Government has borrowed - although the rates paid will be at non-commercial bank interest rates for the loans taken.

The spending habits of Singaporeans are largely the result of the Government's policies.

One case in point is the wasteful consumption of purchasing cars that has a negative value at the end of the TEN-year COE period; and the government has moulded the consumption pattern based on the quantity of COE released - that are contrary to the declared objectives when COE was first introduced.

The ugly capitalist face of this Government has constantly resurfaced - and the most obvious is the renegading of its social responsibility by letting Commercial Banks take over the financing of HDB Houses - that were previously financed by HDB itself.

maurizio13 SG

Caveat emptor my @rse!!

Like always, you quote terms which you are clueless about.

ca·ve·at emp·tor
noun let the buyer beware: the principle that the seller of a product cannot be held responsible for its quality unless it is guaranteed in a warranty.

[Origin: 151525; < L]

KNN, you must be living in the Renaissance period 14th century to 17th century. Irony of a person living in the 14th century telling someone not to live in the 1960s.

caveat emptor: [latin: let the buyer beware] A common-law maxim warning a purchaser that he could not claim that his purchases were defective unless he protected himself by obtaining express guarantees from the vendor. The maxim has been modified by statute: under the Sale of Goods Act 1979 (a consolidating statute), contracts for the sale of goods have implied terms requiring the goods to correspond with their description and any sample and, if they are sold in the course of a business, to be of satisfactory quality and for any purpose made known to the seller.

As usual, you prove beyond a reasonable doubt that you are an imbecile.

You do provide some form amusement, ever considering taking up job as a stand up comedian?

Cool Laughing

maurizio13 SG

Obviously you are clueless about interest rates in the Singapore context.

I think it's more likely that the highly inflated prices distort the market.
Was talking to a friend the other day, he was telling me how he paid $10,000 for upgrading works for his HDB, which the government subsidised 90%. He was commenting on how the government can justify saying that, they subsidised $90,000 for a small store room that he got.

Economy not doing well? I thought in your other post you gave us the impression that the Singapore economy is doing very well.

oxford mushroom SG

Go back to school and learn some economics, kid and follow up your statements with some evidence, for goodness sake...

Prices in the housing market are determined by market forces. The resale market is buoyant and private property prices have shot up recently, pushed up the the good economy and news about the coming IR. Prices in the resale market has a close and direct bearing on the value of new property and vice versa. In fact, it is not in the interest of the government to have high property prices because it strips Singapore of our competitiveness.

The problem is that many Singaporeans aspire to a lifestyle they cannot afford. Too many kids fresh out of poly or Uni take up car loans and housing loans as if there is no tomorrow. It might be good for the government to turn more of a nanny state and restrict Singaporeans to the type of housing they are allowed to buy based on their income. Why should a fresh grad earning $2000 a month be allowed to take a car loan and buy a private car? That's the problem with respecting civil liberties.....rights without responsibility leads to disaster.

The estate upgrading covers more than the storeroom. How conveniently have you ignored the lift landings, the covered walkways, renovations to the loo and other improvements to the common areas Mr. Green

You need some lessons in English Comprehension. I did not say the economy is doing badly now. I said it is not in the interest of the banks to foreclose bad loans especially if the economy is not doing well because they cannot sell off the property. Ever heard of the Joseph cycles? We are moving towards the end of the years of plenty...the bull run in the stock market cannot go on forever. As one ST journalist said, the bear might come earlier than you think. Banks are not daft....they do not want to end up with armfuls of property when the economy turns for the worse with no customers in sight for the long, lean years to come.

For the banks to foreclose on bad debts, they must be convinced that the debtor is not willing or will never be able to pay.

maurizio13 SG

Yet you have shown us how well you understand economics. Like your previous understanding of "when interest rates rise, bond prices will increase" because more people will buy it as it pays better rates.

When you have a managed floating foreign exchange regime, you are indirectly affecting the price of interest rates. Therefore the interest rate is not determined by the market forces. You don't even know what is the parity involved. Don't think it's my responsibility to teach you, I should let you remain an imbecile.

Why are always repeating the same points like a damaged record? About people living beyond their means, I have heard it like a million times.

Are all your posted relevant to what I commented? Read my posting again and understand.

Common areas are public areas, you cannot attribute it's usage to any particular household. What about strangers using the common areas? Don't they have to pay then? Next you will be justifying them charging a portion of the development cost to swimming pools and sports stadium, after all they are common areas. When you buy the apartment, do they allocate those common areas to you? Do you have the right and ownership of the common areas? If you don't have, what right have they to make you pay for it? In simple terms, it's just government's way of hoodwinking you to paying for other cost.

Huh? You did not say that the economy is doing badly? I must be in the twilight zone or sumthing. I don't even know whether you are trying to tell us economy is good or bad right now.

I wonder how many of the forumers think OM needs some basic English lessons?

AndrewPKYap SG

P*P must be blamed for pricing HDB at such ridiculous prices and then go around trumpeting that it is "affordable" - well it shows clearly that it is not affordable for many people and they must take the blame for it. As for whether these people must be blamed for "living" beyond their means, it is a red herring because, their compulsory CPF is supposed to pay for it.

Bottom line is, P*P must be blamed because they priced HDB flats at such ridiculous prices.

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