The family lost their 5 room flat to the bank.
The bank posseseed the flat because they did not keep up with the
mortgage payemtns. Now the family is living in a rented 3 room in
Hougang paying 800 dollars rent.
But the bank is also enforcing them to pay 900 dollars per month
for the mortgage. The bank says it is not able to sell the flat. So
it is keeping the flat locked up.
Then my question is: Why not give the flat back to the family and
they can pay the monthly installments which is the same as the rent
they are paying now for the 3 room.
Atleast by doing that, they get to pay for the ownership of the
property while at the same time the bank gets its due. But the bank
refuse. It keeps the property after possessing it, then make the
family pay the 900 dollars monthly installments, till it says it
can find a buyer.
But that can take ages, if the bank is not making effort to sell
the house quickly or it is more interested to collect as much as
possible money from the family before it decide to sell the
house.
What the bank is doing is utterly wrong. such actions must be made
automatically illegal so that no need to spend money on lawyers etc
by the ordinary citizen against the mighty bank.
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From: jtan45 09:19
To: GoFlyKiteBud 2 of 10
130335.2 in reply to 130335.1
This is certainly very strange. If the family can afford to pay
$800 rent, then why should they default on $900 mortgage in the
first place? I think it is more likely that the bank wants the
arrears to be settled first before they allow the family to move
back to the property. This is a debt-trap that many have fallen
into when HDB flat loans were thrown open to the banks, as they
were tempted by the low interest rates for the first few years of
mortgage. This promotional rates is going to be over soon, and many
will be stuck with high interest rates when banks decides to
increase their board rates at will. My advice is to either pay up
in full in you can, or take loan from HDB only and not from any
banks.
Options Reply
From: johnny333 09:46
To: GoFlyKiteBud 3 of 10
130335.3 in reply to 130335.1
Which bank? Want to avoid.
Options Reply
From: LeongSzeHian 10:00
To: ALL 4 of 10
130335.4 in reply to 130335.2
I refer to the articles "The low down on home loans" (Business
Times, Nov 
, "Housing
policies to be refined" by Uma Shankari (Business Times, Nov 4),
"Mortgagee sales of HDB flats on the rise" by Siow Li Sen (Business
Times, Oct 20), and the New Paper report on HDB mortgagee sales
(Oct 20).
The last article said that one bank "said it has no mortgagee sale
so far", while another "said it has not had many defaults in this
area", and the "other banks would not tell the Business Times how
many repossessed flats they have on their books".
Just four property auction companies have had increasing HDB bank
loan foreclosures of about 38 flats a month (456 a year), which is
an annual increase of about 690 per cent (456 divided by 190
divided by 3) over the 190 flats foreclosed in the first three
years after bank loans started for HDB flats on January 1, 2003.
After three years and nine months, the default rate of about one
per cent is quite high as there are already about 700 foreclosures
out of a total of about 70,000 HDB flats with bank loans. On
October 13, HDB announced a new procedure that from January 1, 2007
, those who want to apply for a housing loan will first need to
obtain a loan eligibility letter before they can commit to buying a
new flat. How many Singaporeans have to lose their homes and CPF,
before we re-think the policy change of giving the first charge on
property to banks?
As more Singaporeans become ineligible for HDB subsidised loans
because they or jointly with their parents have used up the two
subsidised loans allowed by HDB, there may be more foreclosures as
in contrast, HDB was quoted in the subject Business Times article
that they did not repossess any flats in 2004 when only about 10
flat owners gave up their flats on their own accord.
A mortgagee foreclosure may mean no home, no CPF, and may be made
bankrupt too!
Leong Sze Hian
Options Reply
From: FakeFacist 12:15
To: GoFlyKiteBud 5 of 10
130335.5 in reply to 130335.1
GoFlyKiteBud,
You can wait and hope for this "law" till you die.
Options Reply
From: Pro-Singapore (Deenlee) 12:46
To: LeongSzeHian unread 6 of 10
130335.6 in reply to 130335.4
We have seen that the banks' board rates are non-tranparent, and
many customer have seen their mortgage rates increasing by the
months, as new discounted rates only applies to new customers. As
jtan45 had pointed out, HDB flat owners who took up bank loans in
2003 will start to feel the pinch when their promotional mortgage
rates ends and banks will start charging flexi rates off board
rates.
As for the loan eligbility letter, it only shows how one can
service the mortgage at the current time while they are gainfully
employed when buying flat. It doesn't help when one is being
retrenched later and ends up have difficulty finding employment. So
who does this eligibility letter helps?
Furthermore, it will be a double whammy for those in the 40s later
with 3 kids to support. Mortgage rates will then be high, and if
they are retrenched, then it will be really difficult for them if
they have 3 school going kids. For the average Singaporeans, the
future is bleak if they haven't realise it yet.
Think about it
Deen Lee
--------------------------------------------------------------------------------
Edited 22/01/2007 12:52 ET by Pro-Singapore (Deenlee)
Options Reply
From: GoFlyKiteBud 17:19
To: jtan45 unread 7 of 10
130335.7 in reply to 130335.2
You are right. At one point in time the family went into arreas due
to a period of unemployment. I think for about less than a year.
That was the time when the flat was taken over.
Fine. I can understand that.
What I cannot understand is, now they are back on their feet, why
not review the whole thing and give back the flat, instead of
locking it up, not selling it, forcing them to stay in a rented
flat. Then make them pay for the monthly loan payments under threat
of bankruptcy proceedings. One can see that the main crux of the
mater is, that the bank wants to make some money out of this family
by doing all this.
The bank is creating needless hardship.
Options Reply
From: DOMtheclown (DrLohJee) 19:43
To: Pro-Singapore (Deenlee) unread 8 of 10
130335.8 in reply to 130335.6
Bro Deen,
Hi! Belated Happy New Year to you and your family!
Cheers!
DOM
Options Reply
From: fireflie8 21:36
To: GoFlyKiteBud 9 of 10
130335.9 in reply to 130335.7
This is what they called TANG in Chinese means GANG.HDB cahoot with
the Banks and they gang up with MAS also to intimidate the
citizen.
Options Reply
From: 2006 Year of More hikes & Propaganda! (sgsamster)
22:13
To: DOMtheclown (DrLohJee) unread 10 of 10
130335.10 in reply to 130335.8
Just to highlight: You are not HDB flats Owners but tenants for 99
years.
